SAP Organization structure

Client : Unit within SAP system, self-contained, separate master data with independent set of tables. It represent corporate group.

Company Code : Smallest organizational unit of external account for which a complete, self-contained bookkeeping system can be replicated. eg, company within a corporate group.

Plant : An organizational unit within logistics, subdivides an enterprise from the viewpoint of production, procurement and materials planning.

Purchasing Org : Organization within logistics which subdivides an enterprise according to purchasing requirements.

The procurement business process uses this organizational structure:

Client =>Company Code => Plant =>Storage Location => Purchasing Org/ Purchasing group

1.2 Purchasing Group and Purchasing Organization

1.2.1 How can we create a purchasing organization at enterprise level ?

You can create purchasing organization with following path in SAP

SPRO => Enterprise Structure =>Materials Management => Purchasing Org =>New Entries

1.2.2 Creation of Purchasing Organization

1.2.2.1 If we create a purchasing organization at plant level, is it necessary to assign that purchasing organization to the company code ?

No, purchasing organization cannot be created at plant level. It will be created at client level and unique within client. it can be assigned to a Plant or a company code or to the both.

1.2.2.2 Is it necessary to assign purchasing group to the purchase org ?

1.2.2.3 Is there any procedure by which a purchasing group (or many purchasing groups) could be assigned to a purchasing organization?

There is no such configuration exist in SAP to link Purchasing Organization to Purchasing Group.

Purchasing group is never ever assigned to any organization element. It is hanging organization element in organization structure.

You cannot assign purchasing organization to purchasing group.

1.2.2.4 How you will configure Purchasing organization ?

Purchase organization is created by customizing in following path

SPRO=>Enterprise structure=>Definition=> MM=> Maintain Purchase organization =>Create New Entry.

1.2.2.5 What are the forms of Purchasing Organization?

1.2.2.5.1 Assignment: Plant specific- purchasing organization

In this business scenario one or more than one purchasing organization is responsible for procurement of materials or services for the specific plant only.

1.2.2.5.2 Purchasing organization – company code

A purchasing organization can (but need not) be assigned to a company code. If you do not assign a company code to a purchasing organization. Company code specific purchasing organization will serve to that company or plants assigned to that company code.

1.2.2.5.3 Purchasing organization – across company code /Across Plants.

A purchasing organization cannot be assigned to any company code . It will be assigned to plants codes.

1.2.2.5.4 What is a reference purchase organization? When can it be used?

Reference Purchasing Organization used to facilitate the cross purchasing organization procurement transactions. Due to which more advantageous conditions and centrally agreed contracts on based of larger quantities, or to simplify conditions of maintenance happens. It is possible for other Purchasing organization to use these conditions of a reference purchasing organization for price determination purposes. Similarly it is also possible for several purchasing organization to be allowed access to contracts of a certain reference purchasing organization. Reference purchasing organization is treated as normal purchasing organization which haves vendor master and materials master

Purchasing organizations that procure for several company codes (contract management) are not assigned to one company code. They can procure for the any company code.

It is not mandatory to assign Purchasing organization to the company code. If you want to have company code specific purchasing organization then you have to assign it to the company code.

1.3 Plant Configuration

1.3.1 How you will configure plan codes in SAP ?

Plant codes MUST be always copied from reference plant so that all dependent tables will be copied and no need to configure dependent configuration e.g. assignment with purchasing organization, sales organization.

1.3.2 Give me path where you will configure the plants in SAP ?

SPRO=> IMG=> Enterprise Structure=>Definition =>Logistic General=>Define, copy, delete, check plant=> Copy, delete, check plant=>F6 to copy org. object from plant 0001 to defined plant(s).

To change address of plants , we can go in the following configuration node.

SPRO-IMG => Enterprise Structure=>Definition=> Logistic General=> Define, copy, delete, check plant=>Define Plant (In this, we are defining plants(s) under company which is defined earlier)

1.4 Storage Location:

1.4.1 How you will configure the storage location ? Give me path ?

SPRO=>IMG=>Enterprise Structure=>Definition=>Materials Management => Maintain Storage Location => New Entries (Define required storage location(s) under different plant(s) )

SPRO =>IMG=>Enterprise Structure=>Definition=>Materials Management=> Maintain Storage Location=> Storage Location Description=>New Entries (enter here addresses of each plant)

1.4.2 One Storage Location for Two Different Plant

Can one storage location be extended to two different plants?

We can define same storage location for different plants. E.g. SL01 can be used in diff plants e.g. 1000, 1100,2000 etc. Storage location is unique within plant.

SAP Knowledgebase

Saturday 7 June 2014

SAP Organization structure

1 Organization Structure

1.1 What is the technical difference between Client , Purchasing Org , Plant , Company code?