SAP MM Org structure

SAP MM is one of the important modules of SAP-ERP. It supports procurement, inventory

Management occurring in day to day business operations. This module contains many aspects such
as purchasing, Goods Receipt, material storage, consumption based planning, and inventory . SAP-
MM is integrated with FI, CO, PM, QM, PP, SD, WM.

SAP Enterprise structure :

- Define Company
- Define Company Code
- Assign Company Code to Company
- Define Plant
- Assign Plant to Company Code
- Maintain Storage Location
- Maintain Purchasing Organization
- Create Purchasing Group
- Assign Purchasing Organization to Company Code
- Assign Purchasing Organization to Reference Purchasing
Organization
- Assign Purchasing Organization to Plant

Define Company :
A Company is the organizational unit for which individual financial statement can be drawn according
to the relevant commercial law. A company may comprise of more than one company code. A
company has local currencies in which its transactions are recorded. All company codes within a
company must use the same Chart of accounts and the same fiscal year

Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
structure Definition  Financial Accounting  define company

t-code : OX15

Steps to create Company :

Enter “SPRO” in command field.

Follow the Menu Path

Click “Define Company”

Click “copy” to create new company

Enter the Company Code and Name

Details to be entered as above. Click on “save” icon or “Ctrl+S” after entering the detail.

Company code gets created.

Define Company Code :

Company Code in SAP is a smallest Organizational Unit of Financial Accounting

from which financial statement such as Balance Sheet, Profit & Loss Account is
drawn for external purpose reporting.
Path : SAP IMG -> SPRO -> Implementation guidefor R/3 customizing (IMG)  Enterprise
structure Definition  Financial Accounting  Edit, copy Delete Company Code
t-code : OX02

Two options :

First option, all the tables and configurations are copied automatically along with assignments
Second option is to create company code manually and configure all assignments. Click “new Entries”

Update the following details : Enter company code, Currency, etc. Go to “Address” icon

Address

Fill in all the detail :

Click “save” button. Company code gets created.

Assign Company Code to Company :

Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
structure Assignment  Financial Accounting  Assign Company code to Company

t-code : OX16
Follow the Menu Path :

Enter company to the company code.

Define Plant :
Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
structure  Definition  Logistic- General  Define, copy delete, check plant

t-code : OX10

Define Valuation Level

Click on to “Define plant”

Click on to “New Entry”

Enter the Plant.

Click on to the “Address” icon.
Enter the detail and “save”.

Assign Plant to Company Code :

Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
structure  Assignment  Logistic- General  Assign plant to Company Code

t-code : OX18
Click on to “New Entry”

Update company code in CoCd field and plant code in Plnt

Click on “save” button.

Maintain Storage Location :
Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
structure  Definition  Materials Management  Manintain Storage location

t-code : OX09

Follow the Menu Path and click on Maintain Storage location ,

Enter plant key

Click New Entry. Enter Storage location key and description

Select Storage location and double click Address of Storage location

Click on New Entry and enter Storage no. 1 in No Field

Click Address button for updating the address of the location

Click Save Icon

Maintain Purchase Organization :

Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
structure  Definition  Materials Management  Manintain  Maintain Purchase Organization

t-code : OX08
Follow the Menu Path

Click for New Entry

Add 4 Digit Key and the Description of the Purchase Organization

Click on SAVE Icon.

Create Purchasing Group :
Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Materials
Management  Purchasing  Create Purchasing Groups

t-code : OME4

Click New Entry. Enter Purchase Group Key, the Description in the required fields

Click Save Button.

Assign Purchase Organization to Company Code :

Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
Structure  Assignment  Material Management  Assign Purchase Organization to Company
Code

t-code : OX01
Assign CoCd to the Purchase Organization POrg

Click on “Save” icon

Assign Purchase Organization to Reference Purchase Organization :

Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
Structure  Assignment  Material Management  Assign Purchase Organization to Reference
Purchase Organization

t-code : ______

Reference Purchase Organization is the Purchase Organization where the procurement is done for all
the plants of the Purchasing Organization. This concept is used in case of Global contract preparation
which can be referenced by any local purchasing Organization.
Click “New Entry”
Enter following data in the next screen :

- In the purchase Organization field enter the purchase organization code

- Enter reference purchase organization code

- Release Order specifies that the Release Orders issued against the contracts set up by the
reference purchasing organization.

- Conditions under reference data, check the conditions of the reference purchasing
organization to be accessed.

After that “save” the configuration.

Assign Purchase Organization to Plant :

Path : SAP IMG -> SPRO -> Implementation guide for R/3 customizing (IMG)  Enterprise
Structure  Assignment  Material Management  Assign Purchase Organization to Plant

t-code : OX17
Enter “ New Entry”

Update the data in POrg and Plnt

Click on “save” icon.