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SAP MM - Enterprise Structure

An enterprise structure in SAP defines the organizational hierarchy and units of a company. It typically includes a client, company codes, plants, storage locations, and purchasing organizations. The client sits at the top, followed by multiple company codes and plants. Plants contain storage locations and can have centralized, company-specific, or plant-specific purchasing organizations responsible for procurement. An enterprise structure represents how a business is legally structured and organized.

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155 views

SAP MM - Enterprise Structure

An enterprise structure in SAP defines the organizational hierarchy and units of a company. It typically includes a client, company codes, plants, storage locations, and purchasing organizations. The client sits at the top, followed by multiple company codes and plants. Plants contain storage locations and can have centralized, company-specific, or plant-specific purchasing organizations responsible for procurement. An enterprise structure represents how a business is legally structured and organized.

Uploaded by

Sathya Satz
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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8/17/22, 8:19 PM SAP MM - Enterprise Structure

SAP MM - Enterprise Structure

Every organization has some framework or structure according to which the whole business
runs. An enterprise structure is the structure that represents an enterprise in the SAP ERP
system. It is subdivided into various organizational units which, for legal reasons or business-
related reasons, are grouped together.

An enterprise structure defines various levels in an organization. These levels are placed
according to some hierarchy. Each level has some specific functionality associated with it,
which in a combined way describes the working of an organization. In addition, an enterprise
structure defines various organizational units that are present in an enterprise. The
organizational structure in MM consists of the following organizational levels −

Client
Company Code
Plant
Storage Location
Purchasing Organization
Purchasing Group

The following diagram depicts one such organizational structure that describes the levels
incorporated in an organization. It puts the client at the topmost, followed by multiple company
code, followed by multiple plants, plants having multiple storage location with their own or
centralized purchasing organizations.

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In the following sections, we will look into each of the units that constitute an enterprise
structure.

Client
A client has the following attributes −

Client is a commercial organizational unit in R/3 system.

It has its own set of master data with independent table sets.

According to hierarchy, a client occupies the highest level in a SAP system.

Data that is maintained at the client level is valid for all organizational levels.

Company Code
A company code has the following attributes −

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Within client, a company code is an independent accounting unit.

It is a legal entity that has its own profit, loss and balance statement.
It is the smallest unit in an organization for which a complete independent account set
can be replicated.

Plant
The basic points to be noted about a plant are as follows −

Plant is an organizational unit within a company where activities take place. A plant will
produce goods and make goods available for the company.

It is a unit having manufacturing facility, warehouse distribution center, or a regional sales


office within logistic. It subdivides an enterprise in different aspects.

Storage Location
A storage location has the following attributes −

Storage location is an organizational unit, which actually differentiates between different


material stocks in a plant.

Storage location is a place where stock is kept physically.


A plant can consist of multiple storage locations. All data is stored at storage location
level for a particular storage location.

Purchasing Organization
The points to be noted about a Purchasing Organization are as follows −

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A purchasing organization is an organizational unit under a company or a plant that is


responsible for the procurement activities according to requirements. It is responsible for
external procurement.

A purchasing organization can be at the client level, which is known as a centralized


purchasing organization.

A purchasing organization can also be at the company or plant level, which is known as
company-specific or plant-specific purchasing organization.

Different forms of purchasing can be described as follows −

Centralized Purchasing
Purchasing organization is not assigned to any company code. It procures for all company
codes belonging to different client.

Company Specific Purchasing


Purchasing organization is assigned to a company code only. The plant belonging to the
company code can purchase through this purchasing organization.

Plant Specific Purchasing


Purchasing organization is assigned to a plant. Only this specific plant can purchase through
this purchasing organization.

Purchasing Group
The attributes of a purchasing group are as follows −

Purchasing group is an organizational unit responsible for the everyday procurement


activities within an organization.

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It is a buyer or a group of buyers responsible for the procurement activities in a


purchasing organization.

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