Materials Management (MM)

Organizational Structure

Jaures Magloire N.A.Senior SAP MM/SD Consultant

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Learning Objectives

This presentation is to give you basic knowledge of the organizational structure in MM

Organizational Levels in Procurement Process

Organizational Data

• A hierarchy in which the organizational units in an enterprise are arranged according to tasks and functions

• Are static data and are rarely changed

• The definition of organization units is a fundamental step, it is a critical factor in how the company will be structured

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Valuation Area

• The valuation area determines at which level a material is valuated (inventory value is established)

• SAP R/3 allows valuation at the company code or plant level, but recommends valuation area be set at the plant level

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Organizational Levels in Procurement Process

Purchasing Org

Purchasing Organization – P001

Company Code7000

Storage Location20 - Quality

Storage Location10 - Inventory

Plant P001

Purchasing Group001

Organizational Levels in Procurement Process

Integration

ECC

FIFinancialAccounting

COControlling

PSProjectSystemWF

WorkflowISIndustrySolutions

MMMaterials Mgmt.

HRHumanResources

SDSales and Distribution

PPProductionPlanning

QMQualityMgmt.PM

Plant Maintenance

SMServiceMgmt.

Client / ServerIntegrated BusinessSolution

ECEnterpriseControlling

AMFixed AssetsMgmt.

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