Enterprise Structure

 Every organization has some framework or structure according to which the whole business
runs. An enterprise in the structure that represents an enterprise in SAP ERP system. It is
subdivided into various organizational units which, for legal reasons or business-related reasons,
are grouped together.
 An enterprise structure defines various levels in an organization. These levels are placed
accordingly to some hierarchy shown below in flow diagram, each levels has some specific
functionality associated with it, which in a combined way describes the working of an
organization.

CLIENT: 800

CO. CODE: 1000

Co. code assign to plant

Co. code assign to p. org

P.ORG: T010

P. Org assign to Plants

PLANT: T010 PLANT: T020

A01 T01

A02 T02

A03 T03
 Define Organizational Units: In material management we have scope to define following
entities for organizational structure.

1) Plant 2) Purchase Organization 3) Storage Location 4) Purchase group

DEFINING ORGANIZATIONAL
UNITS

Define Of New Plant T020:

 Plant is an organizational unit within a company where activities take place. A plant will
produce goods and make goods available for the company.
 It is a unit having manufacturing facility, warehouse distribution center, or a regional sales
office within logistic. It subdivides enterprise in different aspects.

PATH: IMG=>Enterprise Structure=>Definition Logistic general=>Define, copy, Delete check plant

T-CODE: OX10
 Define Of New Purchase Organization T010:
 A purchasing organization is an organization unit under a company or a plant that is responsible
for the procurement activities according to requirements.
 A purchasing organization can be at the client level, which is known as a centralized purchasing
organization.

PATH: IMG=>Enterprise Structure=>Definition Material Management=>Maintain purchase org.

T-CODE: OX08

P. ORG assign to plant

Define Storage Location within Plant T020

Storage location is an organization unit, which actually differentiate between different material
stocks and plants, SLoc is placed where we can kept our stock physically, a plant can have
multiple SLoc all data stored at particular storage location.

PATH: IMG=>Enterprise Structure=>Definition Material Management=>Maintain storage location

T-CODE: OX09
 Assignment of Organization Units
 To establish a relationship between these levels, we have to assign them to one or other in such
a way that they still lie in the same hierarchy.

PATH TO ASSIGN ORG UNITS

WITH EACH OTHER

Assigning Purchase Organization to Plant:

 Material Master Configuration:
 This is the enterprise main source of material-specific data. This data will include information on
the material that material a company can procure, produce, store or sell.
 Since there are different departments in an enterprise and each department works on some
specific material, they will enter different information regarding their material. So each user
department has its own view of the material. So, each user department has its own view of the
material master record. The data screens that are used to create material master can be divided
into two categories

DEFINE INDUSTRY
TYPE: TESLA AUTO

DEFINE MATERIAL TYPE: QTY & VALUE UPDATE FOR

VALUATION AREA
1) RAW 2) SEMI 3) FINISHED

ASSIGNING
NUMBER RANGES

CREATE MATERIAL
DEFINE NEW MATERIAL
(MM01): CHECK
GROUP
CONFIGURATIONS

Main Data: Additional Data:

Basic data, Material description,

purchasing data, currency
accounting data,
Implementation Path
 Following is Configuration path for material master where all the data related to
material master we can change as per our requirements in the first step we can define
industry type if required and create specific material type as per companies
specifications and standards.

Path to configuration of basic

material master

Define Of Industry Sector

Creation of Material Type

Materials with some common attributes are grouped together and they are assigned to a
material type. It differentiates the materials and allows organizations to managed different
material type. It differentiates the material and allows organizations to manage different
material in a systematic manner in accordance to a company’s requirement. For example, raw
material and finished product are some of the material types.

Path: Logistic-General => Material Master=>Basic settings=>Material Types=> Define

attributes of material types
Quantity and Value Update
For updating of Quantity of material and current market value we neet to update that into the
system for our plant, I have maintaned it for may plant T020.
Assigning Number Ranges to Material Types

 When we create a material master record, every material is recognized by a unique

number that is known as the material number. We can assign a number to a material
through two ways
 External number assignment − While creating a material, you have to enter your own
number (containing alphabets or digits), and that should be unique.
 Internal number assignment − While creating a material, you need not enter any
number. The system automatically generates a unique number to that material.

Define Number Range −

Internal number range can be defined by following the steps given below −

PATH: IMG ⇒ Logistic General ⇒ Material Master ⇒ Basic Settings ⇒ Material Types ⇒ Define
Number Range for Each material Type

T-Code: MMNR

Assigned Number ranges

to Material types
Created Material Group

Material group is a wider range of material type. Materials with some common attributes are
taken together and they are assigned to a material group. For example: We have some
materials that are to be packaged, so the material type can be electrical or food products, but
we can group these material types and put them in the packaged material group. Follow the
steps given below to create a Material Group.

Path IMG ⇒ Logistic General ⇒ Material Master ⇒ Settings for Key Fields ⇒ Define Material
Groups

T-Code: OMSF

Material group (T010)

Creation of Material

Fill in all the required details such as material number (if external number assignment), material
type, industry sector.

T-code: MM01/MM02/MM03

Path: Logistic=>Material Management=>Material Master=>Material=>Create Material

All fields are as per the

configuration

Selection of view we want to maintain for our material

Enter the name of the plant and the storage location

Maintain Purchasing data and Accounting

Regards,
Akash Hiwale
M: 7507735563
E:akashhiwale20@gmail.com