This presentation illustrates the organizational structure in SAP MM

1. Materials Management
(MM)
Organizational Structure
Jaures Magloire N.A.
Senior SAP MM/SD Consultant

2. Organizational Levels in Procurement Process

3. Organizational Levels in Procurement Process
Learning Objectives
This presentation is to give you basic knowledge of the
organizational structure in MM

4. Organizational Levels in Procurement Process
Organizational Data
• A hierarchy in which the organizational units in an enterprise
are arranged according to tasks and functions
• Are static data and are rarely changed
• The definition of organization units is a fundamental step, it
is a critical factor in how the company will be structured

5. Organizational Levels in Procurement Process

6. Organizational Levels in Procurement Process

7. Organizational Levels in Procurement Process

8. Organizational Levels in Procurement Process

9. Organizational Levels in Procurement Process
Valuation Area
• The valuation area determines at which level a material is
valuated (inventory value is established)
• SAP R/3 allows valuation at the company code or plant level,
but recommends valuation area be set at the plant level

10. Organizational Levels in Procurement Process

11. Organizational Levels in Procurement Process

12. Organizational Levels in Procurement Process

13. Organizational Levels in Procurement Process

14. Organizational Levels in Procurement Process

15. Organizational Levels in Procurement Process
Purchasing Org
Purchasing
Organization – P001
Company Code
7000
Storage Location
20 - Quality
Storage Location
10 - Inventory
Plant P001
Purchasing
Group
001

16. Organizational Levels in Procurement Process
Integration
ECC
FI
Financial
Accounting
CO
Controlling
PS
Project
SystemWF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales and
Distribution
PP
Production
Planning
QM
Quality
Mgmt.
PM
Plant Maintenance
SM
Service
Mgmt.
Client / Server
Integrated Business
Solution
EC
Enterprise
Controlling
AM
Fixed Assets
Mgmt.

18. THANK YOU