Enterprise Structure

Enterprise Structure
Why Do we Require Enterprise Structure ?
Hierarchy structure
Ease of transaction
Reporting
Authorizations
Basic Structure
FI Structure
Client
Client could represent a corporate group.
client is the highest hierarchical level in the SAP system
All user input is stored, processed, and evaluated on a client-specific basis
A client is uniquely defined in the system by a three-digit numeric key
Company Code
A company code represents an independent balancing/legal accounting entity.
An example would be a company with independent accounts within a corporate group.
Financial statements required by law can be created at company code level. Therefore, a company code is the minimum structure necessary in SAP ERP
In an international business, operations are often scattered across numerous countries.
Since most government and tax authorities require the registration of a legal entity for every company, a separate company code is usually created per country
Plant
Manufacturing Unit
Storage Premise
Distribution Center
Storage Location
Plant & Sloc Concept
Purchase Org
Purchase Org
organizational unit within logistics that subdivides the enterprise according to the purchasing requirements
A purchasing organization procures materials or services, negotiates conditions of purchase with vendors, and assumes responsibility for these transactions.
You can assign several purchasing organizations to one company code. However, a specific purchasing organization can only belong to one company code
If Purchase org is responsible for multiple company codes, it will not be assigned to any specific company code
There is a many-to-many relationship between purchasing organizations and plants. In other words, you can assign several plants to one purchasing organization, and one plant to several purchasing organizations.
The assignment plant to purchasing organization could not be omitted.
Based on different Assignments we can have plant specific purchase org, cross plant purchase org & cross company code purchase org
Benefits of Purchase Org in SAP
Purchase Org is useful to maintain master data
Vendor master data will be extended to purchase org & we can maintain different vendor master data for different purchase orgs
Purchasing Info record can also store purchase org specific data
Purchase org plays important role for reporting, authorization control & PO approval control
A purchasing transaction is processed completely by one single purchasing organization
Purchase Org can also be used for purchase price determination by assignment of schema group
Purchase Org in PO
Purchase org will be manually maintained at purchase order header
Purchase org can be defaulted for user by ME21N screen personalization's
Purchase organization can also be defaulted for user by user parameter.
Purchase Group
Config
A purchasing group is a key to represent a buyer, or group of buyers, responsible for certain purchasing activities.
The purchasing group is internally responsible for the procurement of a material or class of materials.
Externally, the purchasing group supplies the contact person for vendors.
The purchasing group is not aligned to other units in the company structure.
Purchasing group is floating entity similar to material group
Purchasing Group is helpful for reporting purpose & Controlling Authorizations
Purchasing Group is maintained at item level for purchase Requisition & Header Level for Purchase Order
It can be Determined from material master at preq level & PO header either manual entry or defaulted from personalize settings of user
Purchase Group also help buyers to select pur req item relevant to them and create purchase order
Purchasing Group can be assigned at material master level or purchase info record level
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