SAP MM Enterprise structure

Enterprise structure is the term used for organizational structure in SAP. All the company organizational elements are mapped at the enterprise structure level.

Below are the important elements of organizational structure from a Material Management (MM) perspective :

Purchase Organisation
Purchasing group
Plant
Storage Location

Purchase Organisation

Purchase organization is the legal entity and is responsible for all kinds of purchase activities within an organization.

Ideally, Purchasing department is a company that is represented as a purchase organization

Purchasing Group

Buyer or group of buyers in a company purchasing department are represented as a purchasing group in SAP

Plant

A manufacturing entity of a company or depo or any location that involves some kind of activity in a place can be treated as a Plant in SAP

Storage location

it's a subdivision of a plant where the stock will be kept.

Setting up of enterprise structure is done in two parts :

1. Definition

2. Assignment

Definition

Individual organizational elements of a company are defined here.

Assignment

The relationship between different organization elements is done here.

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