SAP MM Enterprise structure

SAP provides a flexible organisational structure which can be adapted to virtually any organization.The organisational structure implemented in SAP should be designed to represent the organization accurately. The organisation should assess which SAP structures would best meet their needs with due consideration to the need to secure access to various organisational structures. For example, different legal entities should be represented as separate ‘company codes’ within SAP as this allows separate statutory reporting and access to individual company codes can then be restricted. Consideration should also be given to which organisational units might be used for segregating reporting and responsibilities within the organisation (eg business area, cost centre, plant,sales organisation). Consideration should also be given to the frequency of change for organisational structures within the system. Significant changes to certain organisational structures may be difficult or inefficient to implement. It should also be noted that the system is unable to support security restrictions for some organisational entities (eg storage location).

The minimum required organisational structures include the following:

• An instance is a single, unique installation of the SAP R/3 software. Generally separate instances would be used for development, testing and production.
• A client is the highest organisational level within an instance. There is usually one client for an entire organisation. Separate clients would be used for different organisations using the same R/3 installation (as in a service centre situation). Clients have separate unrelated data. The parameters specified at the client level apply to all company codes within that client. Objects in the system can be either client-dependent (ie apply only within an individual client) or client-independent (ie apply across all clients in an instance).
• The chart of accounts sits at the top of the financial accounting structure (a level below client). At least one chart of accounts must be defined. The chart of accounts lists all the G/L account master records, and contains information on the master records that are not company-code-dependent.
• The company code represents an independent legal entity for regulatory purposes. The balance sheet and income statement are created at the company code level. Each client may contain a number of companies. Several codes can be set up per client to manage the accounts of independent organisations simultaneously. Each agency would be represented by a separate company code. Additional organisational structures may also be set up purely for internal reporting purposes. This may include the use of business areas which represent an organisational entity that is not a separate legal entity. For example, a company code can be subdivided into several business areas in order to create internal reports on
separate subdivisions of the organisation.

Configuration

Organizational Structure

Common Organizational Structures

Use

The purpose of this activity is only to create relevant organizational structures, such as company codes and plants.

Procedure

The following table contains an overview of the organizational structures:

Organizational Structure	Name	Remark
Company Code	SOS	SSK Industries Ltd
Controlling Area	SGCA	SSK Controlling Area
Sales Organization	SOS1	SOS1
	SOS2	SOS2
Distribution channel	1	Dealers/Brokers
	2	DIV 2
	3	Exports
	4	Distributors
	5	Direct Sale
Divisions	1	Div 1
	2	Div 2
	11	Div 11
	12	Div 12
	13	Div 13
	21	Div 21
	22	Div 22
	23	Div 23
	24	Div 24
	31	Div 31
	51	Div 51
	52	Div 52
	53	Div 53
Sales group	S01	SG 1
	S02	SG 2
	S03	SG 3
	S04	SG 4
Plant	SOS1	SOS1
	SOS2	SOS2
Purchasing organization	1000	Central Purch.Org.
	2000	Local Purch.Org.
Shipping point	SOS1	SOS1
	SOS2	SOS2
	SOS3	SOS3
	SOS4	SOS4
	SOS5	SOS5

Definition of FI Organizational Elements

Defining Company Code

Use

The purpose of this activity is to maintain the company code SOS

Procedure

1. To carry out the activity, choose one of the following navigation options:

Transaction Code	SPRO
IMG Menu	Enterprise Structure ® Definition ® Financial Accounting ® Edit, Copy, Delete, Check company code

. Click on New Entries Push Button:

Field name	Description	R/O/C	User action and values	Note
Company Code	Company Code	R	SOS	Input the value
Company Name	Company Name	R	SSk Industries LTD.	Input the value
City	City	R	MUMBAI	Input the value
Country	Country	R	IN	Input the value
Currency	Currency	R	INR	Input the value
Language	Language	R	EN	Input the value

3. Click on Address Push Button or Press Shift+F5 to input the address details of the Company Code:

Field name	Description	R/O/C	User action and values	Notes
	Title	O		Choose appropriate Title
	Name	R	SSk Industries LTD..	Input the value
	Street		XYZ BUILDING	Input the value
	House number		45-47	Input the value
	Postal code		400023	Input the value
	City		MUMBAI	Input the value
	Country		IN	Input the value
	Region		MAH	Input the value
	Time zone		INDIA	Input the value
	Jurisdiction Code
	Language		EN

The company code is the smallest organizational unit in Financial Accounting for which a complete self-contained set of accounts can be drawn up for the purposes of external reporting.

4. Choose Enter to copy the data.

5. Choose Save to save the data.

General MM Organisation Structure (Configuration)

Definition of MM Organizational Elements

. Defining Manufacturing Plant

Use

The purpose of this activity is to define main production plant SOS1.

Prerequisites

Company code SOS already been created.

Procedure

1. To carry out the activity, choose one of the following navigation options:

Transaction Code	SPRO
IMG Menu	Enterprise Structure ® Definition ® Logistics General ® Define, Copy, Delete, Check plant ® Define Plant

2. Click on New Entries Push Button:

Field name	Description	R/O/C	User action and values	Note
Plant	Plant code	R	SOS1	Input the value
Name 1	Name of the plant	R	SOS1	Input the value
Factory calendar	Factory calendar	R	S3	Input the value

3. Click on Address Push Button or Press Shift+F5 to input the address details of the Plant Code:

Field name	Description	R/O/C	User action and values	Notes
	Title	O	SOS1	Choose appropriate Title
	Name	R	SOS1
	Street	O	XYZ
	House number	O		Input the value
	Postal code	O
	City	R	MUMBAI
	Country	R	IN
	Region	R	MAH
	Jurisdiction Code	R
	Language	R	EN

A Plant is a place where materials are produced, or goods and services are provided.

4. Choose Enter to copy the data.

5. Choose Save to save the data.

Result

Data was saved.

Maintaining Storage Locations for Manufacturing Plant

Use

A Storage Location is the place where the physically materials are kept within a plant.

Prerequisites

Manufacturing Plant SOS1 must have been created.

Procedure

1. To carry out the activity, choose one of the following navigation options:

Transaction Code	OX09
IMG Menu	Enterprise Structure ® Definition ® Materials Management ® Maintain Storage Location

2. System will give a popup screen where in system will ask for a Plant for which you want to define Storage Locations.

3. Please input the value SOS1 in the Plant field, and press Enter to continue.

4. Click on New Entries pushbutton to create new Storage Locations.

5. Enter the following entries to create new storage locations.

Field name	Description	R/O/C	User action and values	Note
Sloc	Storage Location	R	Enter the Storage Location code X1
Description	Name of Storage Location	R	X1	Go to next line item to create another storage location
Sloc	Storage Location	R	Enter the Storage Location code X2
Description	Name of Storage Location	R	X2	Go to next line item to create another storage location
Sloc	Storage Location	R	Enter the Storage Location code X3
Description	Name of Storage Location	R	X3	Go to next line item to create another storage location
Sloc	Storage Location	R	Enter the Storage Location code X4
Description	Name of Storage Location	R	X4	Go to next line item to create another storage location
Sloc	Storage Location	R	Enter the Storage Location code X5
Description	Name of Storage Location	R	X5	Go to next line item to create another storage location
Sloc	Storage Location	R	Enter the Storage Location code X6
Description	Name of Storage Location	R	X6

6. Continue step 5 if you want add some more storage locations.

7. Click on Save Icon or press Control + S to save the storage locations.

Result

Assignment of MM Organizational Elements

Assigning Plants to Company code

Use

Plants need to be assigned to company code before using them.

Prerequisites

Company code SOS has already been created.

Manufacturing Plant SOS1 & SOS2 has already been created.

Procedure

1. To carry out the activity, choose one of the following navigation options:

Transaction Code	OX18
IMG Menu	Enterprise Structure ® Assignment ® Logistics General ® Assign plant to company code

2. Select the Company Code from the screen and Double click on the Company Code SOS.

3. System will give new popup screen where in two plants are displayed with check box left side of them.

4. Click the check box SOS1

5. Click the check box SOS2

6. Click the Adopt (Enter) icon or press Enter.

7. Save the document by clicking the Save icon or Control + S.

Result

Data was saved.