Enterprise structure

1. SAP Organization Structure -- Bharath
Client/Company Corporate Group
Company Code A Company Code B
Plant 1 Plant 2 Plant 3
Storage
Location 1
Storage
location 1
Storage
Location 1
Storage
Location 2
Storage
Location 2
SAP FICO
SAP MM

2. Example Enterprise structure
Harley Group
D D
HLBC HLSC
HBBP HBFP HSBP HSFP
HBBS HBFS HSBS HSFS

3. SAP Organization Structure
Company: It is an organizational level or unit with SAP that is self
contained both legal and organizational terms and in terms of
Master data and transactional data.
From business point of view client could represent a corporate
group.
Company code: It is an organizational unit where separate set of
accountings are carried out .
It has it’s own profit and loss, account and balancing statement.
Path: SPRO  IMG Enterprise structure Definition
Financial accounting Edit,Copy & Delete  Copy org.obj.
Tcode: OX15

4. SAP Organization Structure
Plant : It is an organizational unit where goods are
produced/manufactured or services performed.
Path: SPRO IMG Enterprise structure Definition Logistic
general  Define copy, delete, check plant.
TCODE: OX10
Assignment: Plant is to be assigned to Company code.
** Note: One plant can be assigned to only one Company code,
But one company code can have more than one plant.
Storage location: It is an organizational unit where goods are
Stored.
Physical inventory allows, carried out at Storage location.

5. SAP Organization Structure
Path : SPRO IMG  Enterprise structure  Definition 
Materials management Maintain Storage location  Click on
new entries.
Tcode:OX09
Purchase organization: An organizational unit responsible for
procuring materials or services for one or more plants and for
negotiating general conditions of purchase with vendors. The
purchasing organization assumes legal responsibility for all
external purchase transactions. Path : SPRO IMG 
Definition  Materials management
Maintain Purchase Organization.
Tcode:OX08

6. Purchase Organization Structure
Central/Ref Pur. org
Company code 1 Company code 2
Plant A Plant D
Plant C
Plant B
Pur. Org A
Plant specific
Company code
Pur.org 1
Pur. Org E
Cross plant
Pur. Org D
Plant specific

7. Example Purchase organization Structure
Harley Group
D D
HLBC HLSC
HBBP HBFP HSBP HSFP
HBBS HBFS HSBS HSFS
HLPO
HSPO
HBPO
HBBP HBFP HSBP HSFP

8. SAP Organization Structure
Types of Purchase Organization:
o Central Purchase Organization /Reference Purchase Organization.
o Plant Specific Purchase Organization.
o Cross Plant Purchase Organization.
o Company code Pur org.
Central Purchase Organization/Reference Purchase
Organization: Central Purchase Organization is Organizational
unit or level. It takes care of Purchasing activities. Generally Central
Purchase Organization is used in contracts or Agreements.
Plant Specific Purchase Organization are assigned to Central
Purchase Organization. By this the conditions of Central Purchase
Organization are copied.

9. SAP Organization Structure
Plant Specific Purchase Organization: This is Purchase
Organization assigned to Individual plant and It is mandatory to
Assign Purchase Organization to plant, If Purchase is needed for
plant.
Cross Plant Purchase Organization: If a single Purchase
Organization is responsible for two or more plants then that
Purchase Organization has to be assigned for each plant.
Purchase Organization is not mandatory to assign company code.
If there are two or more Purchase Organization for a single plant
Then one of the Purchase Organization has to be created as
Standard Purchase Organization. This is used for special
procurement such as consignment.

10. SAP Organization Structure
Path to assign Purchase Organization to company code:
Path : SPRO IMG  Enterprise structure  Assignment
Materials management Purchase Organization to company
Code.
Path to assign Purchase Organization to plant:
Path : SPRO IMG  Enterprise structure  Assignment
Materials management Purchase Organization to Plant
Code  New Entries.
Path to assign standard Purchase Organization to plant is same
as above. If consignment is used then you need to assign
Standard Purchase Organization to plant.

11. SAP Organization Structure
Path to assign Purchase Organization to Reference Purchase
Organization:
Path : SPRO IMG  Enterprise structure  Assignment
Materials management Purchase Organization to Plant
Code  New Entries.
This step is used when you are doing a central purchase with a
Contract(Agreement) .
Assign Individual Purchase Organization to Reference Purchase
Organization.

12. SAP Organization Structure
Ex: You have created a contract with central purchase
Organization(xyz).
If Purchase Organization ABC is procuring from plant ABC and if
you are creating Purchase Order in plant ABC for ABC Purchasing
Organization with respect to the above contract then Purchase
Organization ABC need to assigned to central/reference
Purchase Organization in SPRO.
Purchasing Group: It is an Organizational unit it subdivides an
Enterprise for logistic purpose.
Purchase Group contains a group of individual/persons assigned
for procuring certain class of material.

13. SAP Organization Structure
It is an individual entity and that is not assigned to any
Organizational level.
Purchase Group contains details and contacts of the Buyer /
Individuals.
Purchase Group is mandatory while creating Purchase Order.
Purchase Group is not assigned to the Organization Structure.
Path : SPRO IMG  Materials management Purchasing
create Purchasing groups  New entries.
The purchasing organization is further subdivided into
purchasing groups (buyer groups), which are responsible for day-
to-day buying activities.
Tcode: OME4

14. SAP MM – P2P Cycle
Requirement Pur. Requisition Quotation
If Material/Vendor is new,
will go for Quotation
Maintain
Quotation
Comparison of
Quotation
Purchase Order
Goods Receipt
Invoice
Processing