sap mm

1. SAP Finance/Controlling
Define Company Code (OX02)
IMG - Enterprise Structure - Definition - Financial Accounting - Define,
copy, delete, check company code
Field Description
Company code Mandatory
Company name Give the full description of the company name . Mandatory
Address It is required for correspondence & is recorded on evaluation reports. Mandatory
Currency Mandatory
Language Mandatory
Country It specifies which country is to be regarded as the home country. Mandatory
Mandatory/Optio
nal
It Represents as a legal entity. Financial statement can created at this level.
Accounts are managed in company code currency. All other currency are interpreted
as foreign.
We need to enter language key so that system will create text in the correct
language.

2. Define Business Area (OX03)
IMG - Enterprise Structure - Definition - Financial Accounting – Define BUSINESS AREA,
Chart Of Accounts (OB13)
IMG - Financial Accounting - General Ledger Accounting - G/L Accounts
- Master Records - Preparations - Edit Chart of Accounts List
COA is a variant that contain the structure and the basic information about GL accounts.
Field Description
Business Area Optional
Mandatory/Optio
nal
It is a separate area of operation with in organisation and can used across company
code.(Example: training/software development)

3. Retained Earnings Account(OB53)
IMG - Financial Accounting - General Ledger Accounting - G/L Accounts
- Master Records - Preparations - Define Retained Earnings Account
Fiscal Year(OB29)
IMG - Financial Accounting - Financial Accounting Global Settings -
Fiscal Year - Maintain Fiscal Year Variant (Maintain Shortened Fisc. Year)
Field Description
Chart of Accounts Key4 digit alphanumeric Mandatory
Description We need to give the description Optional
Language Accounts are maintained in the language Mandatory
Length length of the Gl account can be 1 to 10 Optional
Mandatory/Optio
nal
Field Description
Net loss or profit should carry forward via retained earnings Mandatory
Mandatory/Optio
nal
Retained earnings
Account

4. Open and Close Posting Period (OB52)
IMG - Financial Accounting - Financial Accounting Global Settings -
Document - Posting Periods - Define Variants for Open Posting Periods
Field Description
Field status variant Mandatory
Mandatory/Optio
nal
It will contain definition of posting periods and special periods, if it is calender
year we need tick this calender year option.
Field Description
It will contain which period is open for business transaction Mandatory
Mandatory/Optio
nal
Open and Closing
Posting Period

5. CONTROLLING
Controlling Area(OKKP)
SPRO – Controlling – General controlling – Organization – Maintain
controlling area (Tr.Code is OKKP)

6. Cost Center(KS01)
Accounting-Controlling-Cost center accounting-Master data-Cost center-
Individual processing-create (Tr.code is KS01)
Field Description
Controlling Area Mandatory
Name Description of the controlling Area
Person Responsible Person Responsible for Controlling Area Optional
Co-cd>CO Area Mandatory
Currency type Mandatory
Mandatory
Mandatory/Optio
nal
Controlling area is most important organizational element in controlling responsible
for cost and revenue can be managed and allocated.
This field is used when maintaining the company code and the Controlling area
for assignment control
here we need give to company code currency, once the field was filled all other field
filled automatically ie Currency, Chart of Accounts, Fiscal year variant
Standard Hierarchy
for Cost Center
Indicated hierarchy of cost center groups in which all cost centers in a controlling
area are gathered together

7. Cost Element(KA01)
Accounting- Controlling- Cost element accounting-Master data-Cost
element –Individual processing-Create primary (Tr.code KA01 )
Field Description
Cost Centre Name Mandatory
Controlling Area controlling responsible for cost and revenue can be managed and allocated. Mandatory
Valid From Need to give From date and to date Mandatory
Name Need to give name of the Cost centre Optional
Description Need to give description of the Cost centre Optional
Person Responsible Need to mention responsible person for the cost centre Mandatory
Here need to mention whether cost centre related to production,sales etc Mandatory
Hierarchy area Mandatory
Currency belongs to company code currency Mandatory
Mandatory/Optio
nal
This is used to view department wise cost.
cost Centre
category
A tree structure used during master data maintenance for organizing, from a
controlling standpoint, the business processes and cost centers belonging to a
controlling area.

8. Internal Order(KO01)
Accounting –Controlling-Internal orders-Master data-Special functions –Order
–Create
Field Description
Cost Element To update Co record to sub module cost element are required
Controlling Area controlling responsible for cost and revenue can be managed and allocated. Mandatory
Valid From Need to give From date and to date Mandatory
Name Need to give name of the Cost element Optional
Description Need to give description of the Cost element Optional
Need to define Whether it is a primary cost or sales deductions Mandatory
Mandatory/Optio
nal
Cost Element
category
Field Description
INTERNAL ORDER This is used to view costs for specific task. Optional
Mandatory/Optio
nal

9. Profit Center(KE51)
Accounting-Controlling-Profit center accounting-Master data-Profit
center-Individual processing-Create (Tr code is KE51)
Field Description
Profit Centre Name Mandatory
Controlling Area controlling responsible for cost and revenue can be managed and allocated. Mandatory
Valid From Need to give From date and to date Mandatory
Name Need to give name of the Cost centre Mandatory
Description Need to give description of the Cost centre Optional
Person Responsible Need to mention responsible person for the cost centre Mandatory
Profit Certre group Mandatory
Mandatory/Optio
nal
This is used to view profitability product wise /Division wise / Location wise if
business area is not used in FI.
Each profit center must be assigned to a node in the standard hierarchy for its
controlling area. This ensures that the standard hierarchy contains all the profit
centers in the controlling area

10. Material Management
Plant
 It is an Operational Unit with in a company code.
 It is a place where materials are produced or Goods/Services are provided.
 A Plant can be having
- Manufacturing facility - Regional Sales Office
- Central Delivery warehouse - Corporate HQ - Maintenance Plant
Note: A Plant must always be assigned to a company code.
Customization Steps:
SPRO  Enterprise Structure  Definition  Logistic-General  Define, copy, delete, check plant
(EC02/OX10)

11. Storage Location:
 It is an Organizational unit, which allows the differentiation of Material Stock with in a Plant.
 Under the plant there may be different storage locations. However the storage location of one
plant cannot be used for the other plant.
Customization Steps:
SPRO  Enterprise Structure  Definition  Material Management  Maintain storage location
(OX09)
Fields Description Mandatory/Optional
Plant Mandatory
Language Key Mandatory
Country Key
County Code Optional
City Code Optional
Tax Jurisdiction Optional
Factory calendar key Mandatory
Title text Possible Titles for the Plant Mandatory
Search Term Mandatory
Region (State, Province, County) Mandatory
Address time zone
Key uniquely identifying a plant.
The language key indicates, the language in which texts are
displayed, - the language in which you enter texts, - the
language in which the system prints texts
The country key contains information which the system uses to
check entries such as the length of the postal code or bank account
number.
will be copied from
address screen once
click the save button.
Key used to classify cities from the point of view of taxes.Currently
the county code is used in the USA for handling county tax, and in
Denmark to define the municipality number of the employee's first
place of residence.
This key is used for classifying cities from a tax point of view. This is
a finer sub-division than the county code. Currently the key is used
only in the USA for handling city tax.
The tax jurisdiction is used for determining the tax rates in the USA.
It defines to which tax authorities you must pay your taxes. It is
always the city to which the goods are supplied.
Key that uniquely identifies the factory calendar that is valid for
this plant.
Short description used for search helps. An identifier used within an
organization for organizational assignment. For example -
Abbreviation, short name of plant
In some countries, the region forms part of the address. The
meaning depends on the country.
Time zone as part of an address. It depends on the country and the
region. (Region means state, province or county, depending on the
country)

12. Purchasing Organization:
• It procures the material and services.
• It negotiates conditions of purchase with the vendors.
• It is responsible for completing the procurement contracts
Customization Steps:
SPRO  Enterprise Structure  Definition  Material Management  Maintain purchasing
organization (OX08)
Purchasing Group:
Purchasing group is the key for a buyer or group of buyers responsible for certain purchasing
activities.
Customizing Steps:
SPRO  Material Management  Purchasing  Create Purchasing Groups (OME4)
PRODUCTION PLANNING
SAP Production Planning, no mandatory enterprise structure to be maintained. Same Material
Management structure (plant, storage location, etc.,) would be used in PP also.