SAP MM Enterprise Structure
The SAP MM Enterprise Structure is described in SAP as "the definition of specific
organizational units that collectively represent a company's business units and divisions."
SAP Enterprise Structure is the foundation of every project. It is an organization's system
representation. When a project is proposed or launched, it begins with an analysis of the
company's business structure and procedures, which are then mapped to SAP structures.
For Material Management (MM) the organizational units are Plant, Storage Location,
Purchasing Organization, and Purchasing Group. These organizational units are assigned
together.
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.
Defining Company
In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition ->
Financial Accounting -> Define company.
add new entries and enter the necessary details for the company
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financial accounting's, profit and loss statements can be withdrawn.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 :
In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition ->
Financial Accounting -> Edit, Copy, Delete, Check Company Code.
In the choice box, choose Edit Company Code Data
Add a new entry in the page, prvovide company code along with the address details.
Now we have defined company code 6006.
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 :
In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition ->
Logistics - General -> Define, copy, delete, check plant
Choose Define Plant option
Add a new entry and provide plant as well as address details
Add a new entry and provide plant as well as address details
Now we have defined the plants with numbers 6061 and 6062 for plants in Bangalore and
Mysore location.
Create Storage Location :
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.
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 :
In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition -
>Materials Management -> Maintain Storage Location
Provide the plant for which we are defining the storage location. Provide the address
details.
Now we have defined all the components of the enterprise structure.
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.
