Organizational structure SAP MM from a real-life example
1- Different levels of organizational structure in SAP MM.
a. Client: As the highest organizational unit in an SAP system, the client can be a corporate group and can represent a company or a conglomerate of companies. For example, consider a corporate group called MRF Tyres which has companies in other countries such as MRF India, MRF china, MRF Australia, MRF USAb.Company code: The company code is the smallest organizational unit for which you can have an independent accounting department within external accounting. For example, MRF India is a company code and similarly, MRF Australia is a company code.
c.Plants: A plant is an organizational logistics unit that structures the enterprise from the perspective of production, procurement, plant maintenance, and materials planning. A plant is manufacturing a facility or branch within a company.
d.Storage location: A Storage location is a Storage area comprising warehouses nearby. Material stocks can be differentiated within one plant according to a storage location. For example, we can have one storage location for raw materials, one for finished materials and one for semi-finished materials and so on.
e.Purchase organization: A purchase Organization is an organizational level that negotiates conditions of purchase with vendors for one or more plants. It is legally responsible for completing purchase contracts. It is a group of people negotiating and finalizing terms and conditions for material procurement
f.Purchasing group- a group of people buying and negotiating on behalf of the company or company code. They deal directly with the vendors
2. These are the basic organizational components for an organizational structure in SAP MM.
3. Now, in SAP we do two kinds of activities i.e designing and mapping organizational structures
1. Defining an organizational component such as client, company code, etc.
2. Assigning these organizational components with each other
Create company
T-Code: OX15
Create company code
T-Code: OX02
Path: - SPRO ⇒ IMG ⇒ Enterprise Structure ⇒ Definition⇒ Financial accounting ⇒ Edit, Copy, Delete, Check Company Code
Create plant
T-Code: OX10
Path: -– SPRO ⇒
IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Logistic General ⇒ Define, Copy,
Delete check plant
Create storage locations
T-Code: OX09
Path: - SPRO ⇒
IMG ⇒ Enterprise Structure ⇒ Definition ⇒ Materials Management ⇒ Maintain
Storage Location
Create purchasing organizations
T-Code: OX08
Path: - SPRO ⇒ IMG ⇒ Enterprise Structure ⇒
Definition ⇒ Materials Management ⇒ Maintain Purchasing Organization
Create purchasing groups
T-Code: OME4
Path: - SPRO ⇒
IMG ⇒ Materials Management ⇒ Purchasing ⇒ Create Purchasing Group
Assign company code to company
T-Code: OX16
Path: – SPRO ⇒
IMG Reference ⇒ Enterprise Structure ⇒ Assignment ⇒Financial
accounting ⇒ Assign Company Code To Company.
Assign plant to company code
T-Code: OX18
Path: -SPRO ⇒
IMG ⇒
Enterprise Structure ⇒ Assignment ⇒
Logistics ⇒ General ⇒ Assign plant ⇒
company code.
Assign purchasing org to company code
T-Code: OX01
Path: - SPRO ⇒ IMG ⇒ Enterprise
Structure ⇒ Assignment ⇒ Material Management ⇒ Assign purchase organization to
company code.
Assign purchasing org to plant
T-Code: OX17
Path: - SPRO ⇒ IMG ⇒ Enterprise
Structure ⇒ Assignment ⇒ Material Management ⇒
Assign purchasing organization to Plant.
Assign standard purchasing org to plant
T-Code: OMKI
Path: - SPRO ⇒ IMG ⇒ Enterprise
Structure ⇒ Assignment ⇒ Material Management ⇒
Assign standard purchasing organization to plant
Assign reference purchasing org to plant
T-CODE: OMKJ
Path: - SPRO ⇒ SAP Reference IMG ⇒
Enterprise structure ⇒ Assignment ⇒
Materials Management ⇒ Assign purchasing
organization to reference purchasing organization