Organizational Structure
OVERVIEW
Organizational structure defines how data is managed across various departments and levels.
1. Client:
The highest hierarchical level in SAP. Represents a corporate group with common data access across all modules.
2. Company Code:
A legal entity for financial reporting. Each company code has its own balance sheet and profit/loss statement.
3. Plant:
A physical location or facility where goods are manufactured, stored or distributed. Essential for inventory management and procurement operations.
4. Storage Location:
Subdivision of a plant. Tracks the quantity and value of materials stored in specific areas.
5. Purchasing Organization:
Manages procurement activities. Can be assigned to one or multiple company codes or plants.
6. Purchasing Group:
A group of buyers responsible for specific procurement tasks. Facilitates operational efficiency in material purchasing.
Define company
20 min
Define company code
20 min
Define plant
20 min
Assign plant to company code
10 min
Define storage location
20 min
Define purchasing group
20 min
Define purchase organization
20 min