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01 - 01 - SAP MM Organization Structure 29082015

The document discusses the organizational structure in SAP MM (Materials Management). It describes the key elements as Company Code, Plant, Storage Location, Purchase Organization, and Purchase Group. It provides examples of how Tata Consultancy Services is organized with one company code, multiple plants, storage locations, and purchase organizations set up in centralized, decentralized, and hybrid reference models. The purchase group represents individual buyers while the purchase organization represents the department responsible for procurement activities.

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Sambit Mohanty
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225 views2 pages

01 - 01 - SAP MM Organization Structure 29082015

The document discusses the organizational structure in SAP MM (Materials Management). It describes the key elements as Company Code, Plant, Storage Location, Purchase Organization, and Purchase Group. It provides examples of how Tata Consultancy Services is organized with one company code, multiple plants, storage locations, and purchase organizations set up in centralized, decentralized, and hybrid reference models. The purchase group represents individual buyers while the purchase organization represents the department responsible for procurement activities.

Uploaded by

Sambit Mohanty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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SAP MM Organization Structure/Enterprise Structure

Company Code - Where profit and loss accounts and legal things carry out.

SAP MM Organizational Elements:

1. Plant - Where the operations like manufacturing/business etc happens


2. Storage Location - Where the material is stored
2. Purchase Organization
3. Purchase Group

TATA CONSULTANCY SERVICES - Company Code- 1000


Plant -1 - TCS Mumbai - Head Office - 1001
Storage Location 1 - Electrical Items - SL01
Storage Location 2 - Civil Items - SL02
Storage Location 3 - Stationary -SL03
Plant- 2- TCS Mumbai - Operations - 1002
Plant - 3- TCS Bangalore - 1003
Plant - 4- TCS Hyderabad- 1004

Purchase Organization: The organization or department which is responsible for


Procurement Activities.

Central Purchasing System:

TATA CONSULTANCY SERVICES - Company Code- 1000 ------------------ TCS Purchase


Organization - 1000
Plant -1 - TCS Mumbai - Head Office - 1001 ------------------ TCS
Purchase Organization - 1000
Plant- 2- TCS Mumbai - Operations - 1002------------------ TCS Purchase
Organization - 1000
Plant - 3- TCS Bangalore - 1003------------------ TCS Purchase
Organization - 1000
Plant - 4- TCS Hyderabad- 1004------------------ TCS Purchase Organization
- 1000

De Central Purchasing System:

TATA CONSULTANCY SERVICES - Company Code- 1000


Plant -1 - TCS Mumbai - Head Office - 1001 ------------------ TCS
Purchase Organization 1 - 1001
Plant- 2- TCS Mumbai - Operations - 1002------------------ TCS Purchase
Organization 2 - 1002
Plant - 3- TCS Bangalore - 1003------------------ TCS Purchase
Organization 3 - 1003
Plant - 4- TCS Hyderabad- 1004------------------ TCS Purchase Organization
4 - 1004

Reference Purchase Organization Concept: (Hybrid- Central + De central)

TATA CONSULTANCY SERVICES - Company Code- 1000 - Reference Puchase Organization -


2000
Plant -1 - TCS Mumbai - Head Office - 1001 ------------------ TCS
Purchase Organization 1 - 1001 - Reference Puchase Organization - 2000
Plant- 2- TCS Mumbai - Operations - 1002------------------ TCS Purchase
Organization 1 - 1002 - Reference Puchase Organization - 2000
Plant - 3- TCS Bangalore - 1003------------------ TCS Purchase Organization
1 - 1003 - Reference Puchase Organization - 2000
Plant - 4- TCS Hyderabad- 1004------------------ TCS Purchase Organization 1
- 1004 - Reference Puchase Organization - 2000

Reference PO acts as a Central Purchase system. All contracts with Foreign vendors,
vendors who supply materials to each plant etc.
Local Purchase Organization acts as De central. This deals with all local
procurement.

Purchase Group: The buyer. The department or a person who is responsible for the
procurement of certain materials or services.

Note:

Purchase group is an organizational element which wont be assigned to any other


organizational element in the configuration
One Company Code can have many Plants but one Plant can have only one Company Code
One Company Code can be assigned to only one Purchase Organization. 1 to 1
But many purchase organizations can be assigned to one Plant. 1 to Many

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