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Enterprises structure SAP MM

Ragunath
26 May 0 0

SAP MM Enterprises structure. 

1. Company:

Company is the highest hierarchy in sap MM. At this level, we will not perform any activities. Under the company, multiple company codes can be assigned. 

2. Company code:

Company code is an important element in sap MM enterprises structure. A company code level, all the financial transactions like profit and loss, GL and balance sheet will happen. All the managerial activity will occur at the company code level.

One company code can be assigned with only one company, and one company code can't be entrusted to multiple companies. 

3. Plant:

The plant can be doing the following activities. 

- The plant can be the manufacturing area

- The plant can be the storage area

-  or Plant can be the service area

One plant can be assigned with only one company code, and one plant can't be entrusted with multiple company codes. 

4. Storage location:

The storage location is the place where we are storing the materials physically. Multiple Storage location can be created within the plant. 

5. Purchasing organization. 

Purchasing organization is responsible for procuring goods and service from an external vendor. Below types of purchasing organization are available. 

- Company code specific

- Plant specific

- Reference purchase org

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