Enterprise Structure of Material Management (MM Module)

Enterprise Structure: SAP enterprise structure is organizational structure which represents an Organization in SAP R/3 system. It consists of some organizational units which are specific business-related reasons or purposes and all these units are grouped together.

Enterprise Structure includes:

1.Company Code:-A Company Code is a Company ID included in the balance sheet of an enterprise. Balance sheets and Profit and Loss statements, are required for legal, are created at company code level. The Company Code is the organizational unit for which we can have an independent accounting department within accounting.

2.Plant:-A plant is the place of production. A plant is represented by a unique 4-digit alpha-numeric character for specified client. Plant is used in Material Management (MM), Production Planning (PP), and Plant Maintenance (PM) modules. A plant is assigned to one company code.

3.Storage Location:-A Storage Location is a storage area comprising warehouses. This is represented by a unique 4-digit alpha-numeric for a specific Plant Code. Material stocks can be within one plant according to storage location (inventory management).

4.Purchase Organization:-It is an organization unit that has responsibility to company’s purchasing requirements. It negotiates purchasing conditions (price, discount, and other things) with vendors.

Facts about Purchasing Organization

A purchasing organization must be assigned to one or more plants.

A purchasing organization can be assigned to one company code.

Now We can have Two Steps:

1. Definition:-

Define Company Code: Actually in company code definition we have many accounting terms to define (Will Study Later) So we can copy the standard Company code provided by SAP by using EC01 transaction.
click copy button and enter copany code from which we want to create and a new company code which we want to create. than we have to rename using Menu Path or same TCODE.

Define Plant: We have OX10 transaction to create Plant. We can fill the mandatory fields for a plant like Plant ID, Address etc.

Define Storage Location: Menu Path is used for this in TCODE SPRO. follow the menu path for this.

Define Purchase Organization: Same as above.

2. Assignment:-

Assign Plant to Company Code: We use OX18 Tcode to assign this.

Assign Purchase organization to Company Code: use TCODE SPRO.

Assign Purchase Organization to Plant: Use TCODE SPRO.

Here we completed the enterprise structure now we have to Post Document.

We will update this next time please get in touch.