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    Sap Ecc Mm's Configuration - Part 1

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    Sap Akhil
    The document discusses key organizational levels in the SAP MM procurement process. The levels include client, company code, plant, storage location, valuation area, and purchasing organization. A client forms a corporate group, company code represents an independent accounting unit, plant structures logistics, storage location allows differentiation of material stocks within a plant, valuation area determines how materials are valued, and purchasing organization negotiates purchase conditions and is responsible for contracts. Purchasing organizations can be assigned to plants only, company codes only, or a combination to support centralized or decentralized procurement.

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    Sap Ecc Mm's Configuration - Part 1

    Uploaded by

    Sap Akhil
    586 views3 pages
    The document discusses key organizational levels in the SAP MM procurement process. The levels include client, company code, plant, storage location, valuation area, and purchasing organization. A client forms a corporate group, company code represents an independent accounting unit, plant structures logistics, storage location allows differentiation of material stocks within a plant, valuation area determines how materials are valued, and purchasing organization negotiates purchase conditions and is responsible for contracts. Purchasing organizations can be assigned to plants only, company codes only, or a combination to support centralized or decentralized procurement.

    Original Description:

    SAP ECC Materials Management Part 1 - Configuration

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    The document discusses key organizational levels in the SAP MM procurement process. The levels include client, company code, plant, storage location, valuation area, and purchasing organization. A client forms a corporate group, company code represents an independent accounting unit, plant structures logistics, storage location allows differentiation of material stocks within a plant, valuation area determines how materials are valued, and purchasing organization negotiates purchase conditions and is responsible for contracts. Purchasing organizations can be assigned to plants only, company codes only, or a combination to support centralized or decentralized procurement.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    586 views3 pages

    Sap Ecc Mm's Configuration - Part 1

    Uploaded by

    Sap Akhil
    The document discusses key organizational levels in the SAP MM procurement process. The levels include client, company code, plant, storage location, valuation area, and purchasing organization. A client forms a corporate group, company code represents an independent accounting unit, plant structures logistics, storage location allows differentiation of material stocks within a plant, valuation area determines how materials are valued, and purchasing organization negotiates purchase conditions and is responsible for contracts. Purchasing organizations can be assigned to plants only, company codes only, or a combination to support centralized or decentralized procurement.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    SAP MM CONFIGURATION

    ORGANIZATION LEVEL IN THE PROCUREMENT PROCESS

    Client

    Company Code

    Plant

    Storage
    Location

    Company Code

    Plant

    Plant

    Storage
    Location

    Storage
    Location

    Storage
    Location

    Client:
    The client is a commercial, organizational unit within the R/3 System, with its own data,
    master records, and set of tables. For a business perspective, the client forms a corporate
    group.

    Company Code:
    The company code is the smallest organizational unit for which you can have an independent
    Accounting department within external Accounting.
    A company code represents an independent accounting unit, for example, a company within a
    corporate group (client).

    Balance sheets and Profit and Loss statements, required by law, are created at company
    code level.

    You can set up several company codes in one client in order to manage various separate
    legal entities simultaneously, each with their own balanced set of financial books.

    You can use a special Customizing function to copy a company code. This copies the
    company code specifications to your new company code.

    Plant:
    A plant is an organizational logistics unit that structures the enterprise from the perspectives
    of production, procurement, plant maintenance, and materials planning.
    A plant is a manufacturing facility or branch within a company.

    A Plant can be one if the following types of locations:


    o Central delivery warehouse
    o Regional sales office
    o Manufacturing facility
    o Corporate headquarters
    o Maintenance plant

    When creating a new plant, you can use the plant copying function, when you use this
    function, the system processes the entry in the plant table and in all dependent
    Customizing and system tables in which the plant is included as key.

    Storage Location:
    The storage location is an organizational unit that allows the differentiation of material stocks
    within a plant.
    Inventory management on a quantity basis is carried out at storage location level in the plant.
    Physical inventory is carried out at storage location level.

    VALUATION AREA
    Valuation area is organizational level which material is valuated. Two possible
    1) Company Code: Valuated at company code level, the valuation price of a material is
    the same in all of a companys Plant (that is, in a company code).
    2) Plant: Valuated at plant level, you can valuate a material in different plants at
    different prices.
    Note: valuation at plant level is mandatory if you want to use either of the production
    planning or product cost accounting components, or if your system is a Retail system.

    PURCHASING ORGANIZATION
    It is an organizational level that negotiates conditions of purchase with vendors for one or
    more plants. It is legally responsible for completing purchasing contracts.
    Note: You can assign the purchase organization to company codes (centralized) and plants
    (decentralized) or combination of both.

    Plant Specific Purchasing organization:


    A purchasing organization is responsible for procuring materials for one plant only.

    Cross Plant purchasing organization


    You can set up a cross-plant purchasing organization for each company code. This
    purchasing organization procures material and services for all plants assigned to the company
    code.

    Cross Company Code Purchasing Organization


    If you want to organize purchasing on a cross-company-code basis, you cannot assign a
    company code to the purchasing organization in customizing. When you create a purchase
    order, for example, the system asks you to enter the company code for which you want to
    procure the material.

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