SAP- MM Organizational Structure

The organizational structure is the key for a successful SAP implementaion. To achive flawless execution of business processes, it’s

extremely important that the organizational structure is accurately mapped in the SAP system (Akash Agrawal)

Mapping to SAP

Company Subsidiary

Factory

Storage Location / Warehouse

Purchase Departement

Buyer Buyer

Enterprise ( Organizational Structure )

SAP ( Organizational Unit )

Enterprse (Corporate Group)

Client

Company Code

Plant

Purchasing Organization

Purchasing Group

Storage Location

Four aspect defining a Client :

1. Organization Structure: The highest organizational unit in organizational structure

2. Business Environtment: Representation of a holding company or group of companies.

3. Technical Environment: Boundary of the master data.

4. Work Environment: Work area that end users interact with inthe system. Ninety percent of the tables in the client are client dependent

Client

ABC Corporation

ABC Steel ABC FMCG ABC Pharmacy ABC Steel ABC FMCG ABC Pharmacy

ABC Steel ABC FMCG ABC Pharmacy

Client

Company Code

SAP Group Implementation SAP Individually Implementation

SAP defines a company and company code separately: • Company

– Smallest organizational unit for which legal financial statements can be prepared.

– A company can contain one or more company codes, but they must use the same chart of accounts and the same fiscal-year breakdown.

• Company code

– smallest organizational unit for which a complete self-contained set of accounts can be drwan up.

– Provide data for generating balance sheets and profit-loss statements

– Represent legally independent companies.

Company Code

ABC Steel

ABC Steel USA

ABC Steel Canada

ABC Steel Mexico

Several definition :

U.S. Cencus Bureau (2002) : A company comprises all the establishment that operate under the ownership or control of a single organization. A company may be a business, service, or membership organization; it may consist of one or several establishment and operate at one oreseveral locations. It includes all subsidiary organization, all establishment that are majority owned by the company or any subsidiary and all the establishment that can be directed or managed by the company or any subsidiary.

New Company

Note : Able to differs Company-Code currencies Same Chart of Account

Plant

Plant didefinisikan sebagai unit organisasi dalam sudut pandang logistik yang berhubungan dengan produksi, procurement, plant maintenance dan material planning.

Plant dapat berupa manufacturing facility, sales office, corporate head office, maintentance plant, warehouse

Jika nilai satu material yang sama dalam dua lokasi yang berbeda mempunyai harga satuan inventory yang berbeda maka plant yang didefinisikan harus terpisah.

Satu plant dihubungkan hanya ke satu company saja.

Sloc

Storage Location is a place within a plant where material are kept.

Physical Inventory is carried out at the storage location

Physical inventory is the process of verifying physical stock with the system stock and will be updfte in any differences exist in stock quantity with system stock.

Purchasing Organization

In industry terminology, purchasing departement deals with vendor and responsile for all procurement activities.

The purchasing departement is mapped as a purchasing organization in the SAP system.

Purchasing organization negotiate conditions of purchase with vendor for one or more plants

Purchasing Group

Purcashing group is a term for a buyer or group of buyers responsible for certain purchasing activities.

Purchasing group isn’t assigned to purchasing organization or any other organizational units

Purchasing groups are defined at thelclient level and can create purchasing document for any purchasing organization

Business Scenarios Scenario 1 : Plant-Spesific Purchasing Organization

Purc. Org 1 Purc. Org 3 Purc. Org 2 Purc. Org 1 Purc. Org 2

Scenario 2 : Cross-Plant Purchasing Organization

Business Scenarios Scenario 3 : Cross-Company Purchasing Organization

Purc. Org 1

Scenario 4 : Reference Purchasing Organization

Purc. Org 1 Purc. Org 3 Purc. Org 2

Purc. Org 4