ORGANIZATIONAL STRUCTURE

SAP
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Organizational Structure in SAP MM

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As discussed, organization structure is the framework of company which describes the entire structure and
functioning of a company. Organization structure is designed in a way that it is split into different levels and
each level is placed according to hierarchy. These levels have relationship to one another. The various levels in
a standard organization are as follows:

• Company
• Company code
• Plant
• Storage Location
• Purchasing Organization
• Purchasing Group

All the Definitions in SAP will be done through Display IMG screen as shown below: Path to reach Definition:
IMG => Enterprise Structure => Definition

Create Company

Company is the topmost organizational unit after client which incorporates individual financial accounting
statements of several company codes. A company can have many company codes. In SAP it is optional to create
company. Following steps will take you through the procedure of creating company.
Path to Create Company:
IMG => Enterprise Structure => Definition => Financial Accounting => Define Company

T-Code: OX15
On display IMG screen select Define Company execute icon by following the above path. Select New

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Select New Entries icon.

Fill in all necessary details like name of company, address of company with street number, city, country, and
postal code. Click on save icon. A new company will be created.

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Create Company Code

A company code is the smallest organizational unit after company for which stand-alone financial accounting's,
profit and loss statements can be withdrawn. Many company codes can be assigned to one company. Following
steps will take you through the procedure of creating company code:

Path to create Company Code:

IMG => Enterprise Structure => Definition => Financial Accounting => Edit, Copy, Delete, Check
Company Code
T-Code: OX02

On display IMG screen select Edit, Copy, Delete, Check Company Code execute icon by following the above path.

Select New Entries icon.

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Fill in all necessary details like Company code, company name along with city, country, currency, language. Click
on save icon. A new company code will be created.

Create Plant

Plant is an organizational unit within a company where activities take place. A plant will produce goods and makes
goods available for the company. Following steps will take you through the procedure of creating Plant:

Path to create Plant:

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IMG => Enterprise Structure => Definition => Logistic General => Define, Copy, Delete check plant

T-Code: OX10

On display IMG screen select Define, Copy, Delete check plant execute icon by following the above path.

Select Define Plant icon to create a new plant.

Select New Entries icon.

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Fill in all necessary details like plant name along with detailed information like Language, House no., city, country,
region, postal code. Click on save icon. A new plant will be created.

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Create Storage Location

Storage location is an organizational unit which differentiates between different material stocks in a Plant. Storage
location is a place where stock is kept physically. Plant can be consisting of multiple storage location. All data is stored at
storage location level for a particular storage location. Following steps will take you through the procedure of creating
Storage location:

Path to Create Storage Location:

IMG => Enterprise Structure => Definition => Materials Management => Maintain Storage Location

T-Code: OX09

On display IMG screen select Maintain Storage Location execute icon by following the above path.

Enter the name of plant for which you want to create storage location.

Select New Entries icon.

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Enter the name of storage location along with the description of storage location. Click on save icon after filling required
information. A new Storage Location will be created.

Create Purchasing Organization

Purchasing Organization is an organizational unit under company or plant which is responsible for procurement
activities according to requirements. It is responsible for external Procurement. Purchasing organization can be specific
to plant or company. Following steps will take you through the procedure of creating Purchasing Organization:

Path to Create Purchasing Organization:

IMG => Enterprise Structure => Definition => Materials Management => Maintain Purchasing Organization

T-Code: OX08

On display IMG screen select Maintain Purchasing Organization execute icon by following the above path.

Select New Entries icon.

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Enter the name of purchasing organization along with the description of it. Click on save icon after. A new Purchasing
Organization will be created.

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Create Purchasing Group

Purchasing group is an organizational unit which is responsible for everyday procurement activities within an
organization. Following steps will take you through the procedure of creating Purchasing Group:

Path to Create Purchasing Group:

IMG => Materials Management => Purchasing => Create Purchasing Group

T-Code: OME4

On display IMG screen select Maintain Purchasing Group execute icon by following the above path.

Select New Entries icon.

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Enter the name of purchasing group along with the description of it with telephone no., fax no, etc. Click on save icon. A
new Purchasing Group will be created.

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