8. ENTERPRISE STRUCTURE / ORGANIZATIONAL STRUCTURE in SAP MM

Just consider TATA is you “CLIENT” for whom you are going to implement SAP. Tata Group is having different “COMPANIES” here we just take Steel, Motors and chemicals. For Tata Steels, let’s assume there are two “PLANTS” in Bangalore and Mumbai. The materials related to the plant are stored in some locations that will be the Storage Location for the plant.


CLIENT
  • ·         Client is the highest Level in the organization.
  • ·         The data stored at Client level is used by all other organizational levels
  • ·         Client is uniquely defined in the system by a three digit numeric code.
COMPANY
  • ·         Company level will have its own set of accounting documents like balance sheet, profit and loss statements
  • ·         Company is uniquely defined in the system by a four digit alphanumeric code. 
                  *Note : In Real Time Project the Client and Company will be define and assigned by Finance Department
 PLANT
  • ·         Plant is an organizational unit within a company where activities take place
  • ·         It can be manufacturing unit, the branch office, sales office or service center or Simply Plant is the place where Valuation takes Place.
  • ·         Plant is denoted by a four-digit alphanumeric key.
  • ·         Plant can be assigned to only one company code
STORAGE LOCATION
  • ·         Storage Location is a place use to store the materials of the plant.
  • ·         Physical Inventory process will takes place at storage location.
  • ·         Plant is denoted by a four-digit alphanumeric key.

EXAMPLES FROM EXECUTION NOTES 1&2

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