SAP MM ENTERPRISE STRUCTURE

PLANT ?
As a part of the Logistics Organizational Structure, Plants are defined in
SAP. The ‘Plant’ is an operating area or a branch or a location within a
company. Each 'Plant' is assigned to a single 'company code'. A
company code' can have several 'Plants'. In case of ITZ Pvt. Ltd., the
various 'Plants' are assigned to a each 'company code'

Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Definition ® Logisti

1       Maintain Storage Location

A storage location is the place where stock is physically kept within a plant. There may be one
A storage location has the following attributes

> A storage location has a description and at least one address

> It is possible to store material data specific to a storage location
> Stocks are managed only on a quantity basis and not on a value
basis at storage location level
> Physical inventories are carried out at storage location level

Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Definition ® Materi
T.CODE OX09

2      Maintain purchasing organization

At this node we configure the Purchasing Organization .The purchasing organizatio

In case of ITZ One single Purchase Organization is created as under
Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Definition ® Materi

3. Assign Plant to Company Code

A Plant needs to be assigned to one of the Company Codes, the relation is always one to one
Implementation Guide for R/3 Customizing (IMG)  Enterprise Structure  Assignment  Logis
4... Assign purchasing organization to company
Implementation Guide for R/3 Customizing (IMG) ® Enterprise Structure ® Assignm
In this node we assign the Purchasing Organization to the company code under wh
In case of ITZ the Purchasing Organization is Central, so it is not assigned to any Com

5.. Assign purchasing organization to Plant

In this step we assign purchasing organizations to the plants for which they are resp
In case of ITZ since it operates with Centralized Purchasing Org. we
have assigned the Purchasing Org. to all the plants defined as of now

6.. Assign standard purchasing organizatio

If several purchasing organisations procure for a certain plant, we can
define one of them as the standard purchasing organization for the
transactions "pipeline procurement", "consigmnent" and "stock transfers".

In source determination for stock transfers and consignent, the system

automatically utilizes this standard purchasing organization. In the case
of goods issues of pipeline materials, the purchasing info records of the
standard purchasing organization are read

In ITZ, we have not defined this Setting as we are using single Purchasing Organis

7..       Assign Fields to Fields Sele

Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à Material M
T.CODE OMSR

Assignment of Material Master Fields is required to define whether a

 field is hidden or displayed, or whether an entry is mandatory or optional
in material master maintenance, it is always advisable to work with
Standard SAP settings, but for few business requirement some
assignments are changed to new field selection groups defined as per
reserved name space. in case of ITZ, some of the list of changed entries is as given

8.. Maintain Field Selection for Data Screens

In this step we define the nature of a Field belonging to a particular Field
Selection Group wrt the Screen Reference of a Material Type. Steps involved are :

> Selecting the field selection group

> Select the field selection option (hide, display, required entry, or
Optional entry) for each field reference as required

9..       Maintain Company Codes for Ma

This activity is done for making a Company Code relevant for materials
Management and to define the starting posting period This is a
prerequisite for creating a Material Master

Transaction Code OMSY

Implementation Guide for R/3 Customizing (IMG) ® Logistics - General à

Purchasing Group
A purchasing group is a term for a buyer or group of buyers responsible
purchasing activities. Because a purchase order is a legal document, the
group is represented on a purchase order or contract

In an SAP system, the purchasing group is an independent entity, so it is

to any purchasing organization. To create a purchasing group, follow the
IMG • Materials Management • Purchasing • Create Purchasing Groups
on New Entries and enter the purchasing group, description, telephone
and fax number, as shown in Figure 2.19. Save the entries to create the
group.
 STRUCTURE company code su01

Structure ® Definition ® Logistics general ® Define, copy, delete, check plant

ocation
hin a plant. There may be one or more storage locations within a plant.

on a value

Structure ® Definition ® Materials Management ® Maintain Storage Location

g organization main co
purchasing org 001

n .The purchasing organization is the highest level of aggregation (after the organizational unit "client") for purchasing statistics
reated as under
Structure ® Definition ® Materials Management à Maintain Purchasing Organization

relation is always one to one i.e. One Plant can be assigned to only one company code
tructure  Assignment  Logistics general  Assign Plant to Company Code
 on to company code
nterprise Structure ® Assignment ® Logistics general ® Assign purchasing organization to company code
o the company code under which it works
so it is not assigned to any Company Code

ation to Plant
e plants for which they are responsible
hasing Org. we
efined as of now

asing organization to plant

ain plant, we can
ization for the
and "stock transfers".

gnent, the system Reference Purchasing Organiza

zation. In the case
info records of the Some customers may have a scenario where they
department at the corporate group level that is re
and creation of global agreements. These agreeme
ing single Purchasing Organisation organizations to create purchase orders. This busin
negotiate better prices due to high-volume purcha
purchasing organization is referred to as a referen

s to Fields Selection Groups

ogistics - General à Material Master à Field Selectionà Assign Fields to Fields Selection Groups

efine whether a
ndatory or optional
e to work with

ps defined as per
of changed entries is as given below

or Data Screens
to a particular Field
ial Type. Steps involved are :

Codes for Materials Management

vant for materials

2019 12

(IMG) ® Logistics - General à Material Master à Basic Settingsà Maintain Company Codes for Materials Management
r group of buyers responsible for certain
order is a legal document, the purchasing

an independent entity, so it isn’t assigned

a purchasing group, follow the path SAP
g • Create Purchasing Groups. Click
group, description, telephone number,
Save the entries to create the purchasing
 co 1 co2 co3
purchasing org 001 plant1 plant2 plant3

rchasing statistics
 PLANT
In industry terminology, a manufacturing facility is called a plant. In an SAP system,

however, a plant can be a manufacturing facility, sales office, corporate head

office, maintenance plant, or central delivery warehouse. In general, the plant can
be any location within a company code that is involved in some activity for the
company code.

urchasing Organization
y have a scenario where they have one centralized purchasing
orporate group level that is responsible for the negotiation
al agreements. These agreements are used by local purchasing
ate purchase orders. This business scenario helps companies
es due to high-volume purchases. In an SAP system, such a
tion is referred to as a reference purchasing organization.
Assigning Purchasing Organizations to Reference Purchase
Organizations
To set this up, follow the path SAP IMG • Enterprise Structure
Materials Management • Assign Purchasing Organization to R
Organization
Management
t. In an SAP system,

rporate head
eral, the plant can
activity for the

ons to Reference Purchase

AP IMG • Enterprise Structure • Assignment •

n Purchasing Organization to Ref Purchasing