This document outlines the enterprise structure and procurement process flow in SAP. It describes the key organizational units in the enterprise structure including client, company code, plant, storage location, and purchase organization. It then explains the different types of purchasing organizations. Finally, it provides a high-level overview of the steps in the procurement process from demand to invoice verification.

1. ENTERPRISE STRUCTURE
&
PROCESS FLOW IN
PROCUREMENT
Present By:
D.THULASI KANNAN

2. ENTERPRISE STRUCTURE
PURCHASE
ORGANIZATION
STORAGE
LOCATION
PLANT
COMPANY
CODE
CLIENT

3. CLIENT
 Client is the highest hierarchical level in
sap system.
 Client represents a corporate group in sap
enterprise structure.
 Data maintained at client level is valid
across all other organizational units.

4. COMPANY CODE
 Company code is an organizational unit
used in accounting.
Company code must assign to a single
company only.
 Company code is defined as 4-digit alpha
numeric key.

5. PLANT
 Plant is a operating area or branch within a
company.
Plant is recommended to use as valuation
area for material valuation.
Plant is defined as 4 digit alpha numeric
key in the sap system.

6. STORAGE LOCATION
 An organizational unit allowing the
differentiation of material stocks within a plant.
 Inventory management is carried out on
quantity basis at this level.
 Physical inventory is also done at this level.
 Defined as 4 digit alpha numeric key in the
sap system.

7. PURCHASE ORGANIZATION
Purchasing organization unit is responsible
for procuring materials for one or more
plants.
 It is the legal responsibility for all external
purchase transactions.
Defined as 4 digit numeric key in the
system.

8. TYPES OF PURCHASING ORG.
1)Corporate/Client level purchasing
organization
2)Company code specific purchase
organization
3)Plant specific purchase organization
4)Reference Purchasing organization
5)Standard purchasing organization

9. ENTERPRISE STRUCTURE IN SAP SYSTEM

10. 6100 6200
COPO
6101 6102 6201 6202
CCPO PLPO
FERARI AUTOMOBILES PVT LTD

11. PROCESS FLOW IN PROCUREMENT PROCESS
DEMAND
PURCHASE
REQUISITION
PURCHASE
DEPARTMENT
COMPARE
QUOTATION
RFQ
SOURCE
IDENTIFICATION
PURCHASE
ORDER
GOODS
RECEIPT
INVOICE
VERIFICATION