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SAP PP Org. Structure

The document discusses the organizational structures in SAP PP. It describes the hierarchy as: 1) Client represents the highest level, often a company or group of companies, with development, quality assurance, and production systems. 2) Below the client is the company code, which reflects the legal reporting units and there can be multiple codes for different lines of business. 3) The next level is the plant, which represents sites like manufacturing or distribution centers. Multiple plants can be assigned to one company code. Storage locations are defined under plants to represent physical or virtual storage sites.

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33 views

SAP PP Org. Structure

The document discusses the organizational structures in SAP PP. It describes the hierarchy as: 1) Client represents the highest level, often a company or group of companies, with development, quality assurance, and production systems. 2) Below the client is the company code, which reflects the legal reporting units and there can be multiple codes for different lines of business. 3) The next level is the plant, which represents sites like manufacturing or distribution centers. Multiple plants can be assigned to one company code. Storage locations are defined under plants to represent physical or virtual storage sites.

Uploaded by

onlinelearn sap
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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SAP PP Organizational Structures

Client

Company Code

Plant Plant Plant

S.log S.log
S.log S.log S.log

Client -- A client represents the highest element of the SAP ERP system's organizational structure.
Often, the client represents a company or a group of companies, within which there are several
independent company units.

From the SAP ERP system's landscape perspective, you normally have three clients
(systems): DEV (development), QAS (quality assurance system), and PRD
(Production). The actual configuration of the SAP system takes place in the DEV
system, which is then transported to the QAS system for testing and training. The
final configuration eventually moves to PRD, which is the final and live system on
which the business process owners of the company makes real-time live entries

Note – Client is Configured or defined by the Basis Consultant. It will be three digit numeric code

Company Code -- The company code is the level below the client in the SAP ERP system, and it
reflects the level at which the company legally reports income statements and balance
sheets. It's an organizational element (unit) of the Financial Accounting (FI)
component. You can have a separate company code for each line of business-for
example, textile and chemicals-as long as the two are legally separate entities.

Note – Company Code is Configured or defined by FI-CO Consultant. It will be a 4 digit alfa-numeric
code. Under one Client i may have multiple company codes

Plant -- A plant is an organizational unit within the Logistics component. You can classify
a plant from the point of view of production, procurement, maintenance, warehouse,
and planning. For example, the plant can be a manufacturing site, a head
office, or a distribution center within a company. At the plant level, you can perform the following
tasks

 Inventory management
 Evaluation and physical inventory of stocks
 Production planning
 Production execution and control
 Material requirements planning (MRP)

In the organizational structure of the SAP ERP system, multiple plants can be assigned to one
company code but one plant can never be assigned to multiple company code
Note – Plant is Configured by MM Consultant. Plant code can be 4 digit alfa-numeric code

Storage Location -- A storage location is the physical or virtual storage site for the materials.
Examples of physical storage locations include raw material store, components store,
returned goods store, finished goods store, and so on, whereas the virtual storage
location can be self-defined and may be a scrap yard or a production shop floor in
which semi-finished goods are temporarily stored

SAP ERP system doesn't have the provision to define the maximum storage capacity of an Storage
Location

Note – This is configured by MM Consultant. It can be 4 digit alfa-numeric code. Under the one plant
i may be have multiple storage locations but one storage location can never be assigned to multiple
plant

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