Monday, June 20, 2011

SAP MM: Organizational Levels in Procurement Process

In SAP system organizational levels are structures that represent the organization views of a company.We can describe the levels as given below....
Contents:

  1. Client
  2. Company Code
  3. Plant
  4. Storage Location
  5. Purchasing Organization 
The details about the contents are as following:

1. Client: Client is the highest level in SAP R/3 system having its own data,master records and set of tables.Client is represented by three digit numeric key.
2. Company Code: The company code is the smallest organization unit having its own balance sheet.A company code can be represented by an independent accounting unit.Company code is represented by four character alphanumeric key that is unique to clinet.
3. Plant: Plant is an organizational unit that subdivides the enterprise structure from the view point of production,procurement,plant maintenance and master planning.we can say that a plant can be a manufacturing unit within a company.Plant is represented by four character alphanumeric key that is unique to client.
4. Storage Location: Storage location is an organizational unit where material stock is kept within a plant.Inventory on a quantity basis is carried out at storage location in a plant.The storage location is represented by four character alphanumeric key that is unique to plant.
5. Purchasing Organization: Purchasing organization is an organizational unit that takes the responsibility of purchasing by negotiating conditions with the vendor for one or more plants.Purchasing organization is represented by four character alphanumeric key that is unique to client.
Purchasing organization can be defined by the three following types:
1.Plant specific purchasing organization
2.Cross plant specific purchasing organization
3. Cross company code specific purchasing organization

Purchasing group does not come under SAP organizational structure.

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