SAP PP/MM Training

BY SHAIK SALMAN

Organization structure
Client.

Controlling Area
Company and Company code Plant Valuation level Purchase Organization Storage location Warehouse Cost centers

Client
Highest level at which chart of accounts can be maintained. Master data maintained in one client can not be accessed from outside As a standard SAP system comes with 3 clients 000,001,066 Client 000 is the reference client, it contains all the default data,

NO MASTER DATA. It cannot be changed or deleted from system.

Client 001 is preparation production client. Changes can be made in this client(It is optional to use) Client 066 SAP Early Watch Alert for SAP support.

Controlling Area
An optional level of accounting. It can have multiple companies under it. All the companies must have same currency, chart of accounts, calendar year. This is used in case of companies having operations in various

countries or joint ventures.

Company and Company code

SAP defines company as the smallest organizational unit for which

legal statements can be prepared.

A company can contain more than one company code but it must use the same chart of accounts and same fiscal year. Transaction code for creating company code is ox15. The company code can be assigned to a company, controlling area, financial management area.

Plant
A plant can be defined to any location.

Transaction code is ox10.

Factory calendar, country key and region keys are the prerequisites of a plant. A plant has to be assigned to a company code. Transaction code for assignment is ox18. A plant can be assigned to only one company but a company can have more than one plant

Valuation level
The valuation level specifies at which level the stocks are valuated

for the whole client.

Transaction code is ox14. There are two options for valuation i.e.plant level and company code level. After the level is determined and configured it must not be changed

Purchase Organization
A group of purchasing activities that are associated with all or a specific part of the enterprise. There are three types of purchase organizations based on organization levels Purchase at enterprise level( cross company) o The purchase organization is defined and then assigned to

companies
Purchase at company level ( cross plant) o Purchase organization is defined and HAS to be assigned to plants o The transaction code for this assignment is ox01 Purchase at plant level (Plant specific) o The transaction code is ox17.

 One purchasing organization can be assigned as a Reference purchase organization. This is a purchase organization that is setup as strategic purchase department.

A purchase organization MUST BE assigned to a reference purchase

organization to have access to information on the system. If there are more than one purchase organization in a plant a purchase organization can be assigned as standard. This purchase org. will be taken as default whenever no other purcchase org. is mentioned.

Storage Location
Storage location is always assigned to a plant.

A storage location is place where the stock is physically kept in a plant.

This is the lowest level of storage defined in MM module. There are no set of rules of how storage location should look like. The transaction code for creating a storage location is ox09. Storage locations can also be created automatically whenever a goods receipt is posted. The transaction code for this is omb3.

Warehouse
The storage location is the lowest location level in MM but not in SAP system. Additional steps are required when WM is implemented. For example: with the goods receipt function the material is moved in to the storage location which is a MM function and then the material is moved in to warehouse and storage bin which is a WM function.
Warehouse

Storage types

Storage bins

 The way SAP identifies the certain storage location are controlled by the functionality in WM is to assign a warehouse to a storage location. Storage type that are predefined in SAP are called Interim Storage Types. A subdivision of storage type is storage section. This is simply a group of

similar storage bins.

Storage bins are lowest levels of storage in SAP system they are not defined in IMG. They can be changed by the staff at the warehouse.