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Author's profile photo Preethi Natarajan

Setup of Enterprise Structure for Materials Management

Dear all,

I would like to speak about the set up of the necessary enterprise structure for Procurement after the Business Blueprint has been finalized. In this phase we design company, client, plant, storage location, purchasing organisation, purchasing group among other things.

The usual structure that is designed is as per this diagram.

Enterprise Structure.png

We design an enterprise, companies, factories and storage locations. The enterprise is the client which is common across all modules and is needed in all modules. The Company code is defined using FI module. The plant is defined in MM and the storage location is defined in the MM module

Most of the MM transactions are at the plant level.

Let us now define these elements. After definition, we can assign the links between them as in the diagram.

Defining Company

In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition -> Financial Accounting -> Define company.

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add new entries and enter the necessary details for the company

/wp-content/uploads/2016/03/2_908785.png

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Now the company 6006 is created which defines a large group of companies.

Defining CompanyCode

In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition -> Financial Accounting -> Edit, Copy, Delete, Check Company Code.

In the choice box, choose Edit Company Code Data

/wp-content/uploads/2016/03/4_908799.png

Add a new entry in the page, prvovide company code along with the address details.

/wp-content/uploads/2016/03/5_908801.png

/wp-content/uploads/2016/03/6_908805.png

Now we have defined company code 6006.

 

Defining Plant

In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition -> Logistics – General -> Define, copy, delete, check plant

Choose Define Plant option

/wp-content/uploads/2016/03/7_908806.png

Add a new entry and provide plant as well as address details

/wp-content/uploads/2016/03/8_908807.png

/wp-content/uploads/2016/03/9_908808.png

/wp-content/uploads/2016/03/11_908809.png

Now we have defined the plants with numbers 6061 and 6062 for plants in Bangalore and Mysore location.

 

Now we shall define Storage Location

In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition ->Materials Management -> Maintain Storage Location

/wp-content/uploads/2016/03/12_908810.png

Provide the plant for which we are defining the storage location. Provide the address details.

/wp-content/uploads/2016/03/13_908811.png

/wp-content/uploads/2016/03/14_908812.png

Now we have defined all the components of the enterprise structure.

 

We now we need to define the purchasing organisation

In SPRO -> SAP Consulting Implementation Guide -> Enterprise Structure -> Definition ->Materials Management -> Maintain Purchasing Organisation

/wp-content/uploads/2016/03/15_908816.png

Create a purchasing organisation.

 

Now we have defined all the necessary enterprise structure elements. We shall now assign them to form the enterprise.

We assign the company code to the company, company code to plant and assign purchasing organisation to plant.

 

Assigning company and company code.

In SPRO -> SAP Customising Implementation Guide -> Enterprise Structure -> Assignment -> Financial Accounting -> Assign company code to company

/wp-content/uploads/2016/03/16_908817.png

find the company and provide the company code against it.

/wp-content/uploads/2016/03/17_908818.png

 

Assigning plant to company code

In SPRO -> SAP Customising Implementation Guide -> Enterprise Structure -> Assignment -> Logistics – General -> Assign Plant to Company Code

/wp-content/uploads/2016/03/18_908819.png

Now provide the company code across the plants

/wp-content/uploads/2016/03/19_908820.png

After this we need to assign purchasing organisation to the enterprise.

I have set it for the company

/wp-content/uploads/2016/03/20_908821.png

 

We have now done the basics needed for implementing the Enterprise for the future implementations.

 

We can view this pictorially in the system through the EC01 transaction and providing the company code.

 

Thank you for reading.

 

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      7 Comments
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      Author's profile photo Ayesha Zoya
      Ayesha Zoya

      Very simplified explanation. 🙂

      Author's profile photo Preethi Natarajan
      Preethi Natarajan
      Blog Post Author

      Thank you Zoya 🙂

      Author's profile photo Former Member
      Former Member

      Hi Preethi,

      Will copying an existing plant be helpful, as it would copy the storage locations also .. Or that is not a standard protocol?

       

      Author's profile photo Karthik Poighal
      Karthik Poighal

      Copying a plant is always suggested against creation of plant. It forms part of best practices of SAP.

      Experts suggest that copying is the best way of creating an organisation structure.

      1000 in IDES

      0001 in Real time implementations are considered to be standard.

       

      Thank you!

       

      Author's profile photo Former Member
      Former Member

      Thank you

      Author's profile photo sudhakar challa
      sudhakar challa

      Dear Team,

      Please explain the enterprise structure diagram mapping clearly.

       

      Rgds

      Author's profile photo Prasanna Kumar Maddela
      Prasanna Kumar Maddela

      Its really simple and easy understanding, Can you provide different models of enterprise structure?