SAP MM - Enterprise structure.

Client

• Client is the highest hierarchical level in SAP system
• Client represents a corporate group in SAP Enterprise structure
• Client is identified in the system by 3- digit numeric code ( 4000 )
• Data maintained at Client level is valid across all other organizational levels

Company Code

• Company code is smallest organizational unit within the client
• Producing its own balance sheets and Profit/loss statements
• Several company codes can be set up within the client
• Company code is defined as 4-digit Alpha numeric key ( Mmm1)

Plant

• Plant is an organizational unit within the logistics and represents
• Production facility as a plant
• Distribution center as a plant
• Sales office be as a plant
• Head quarters as a plant
• Service center as a plant
• Plant is recommended to use as valuation area for Material valuation
• Plant is defined as 4 - digit Alpha Numeric key in the SAP system ( PL01)

Storage Location

• Storage Location is the lowest organizational level in MM and it helps to differentiate the stocks
• Inventory management is carried out on quantity basis at this level
• Physical inventory is also done at this level
• Defined as 4 digit alpha numeric key in the SAP system ( SL01)

Purchasing Organization

• Purchasing organization procures materials and services based on the requirements
• Purchasing organization negotiates terms and conditions with the vendor
• Purchasing responsibility is on the head of purchasing organization
  
• Defined as 4 digit numeric key in the system

Purchasing group

• Purchasing group is nothing but a Buyer or Purchaser
• Responsible for certain type of material or service procurement
• Deals with the vendor by monitoring the purchasing activities
• Defined as 3 - digit alpha numeric key in the system