SAP MATERIAL MANAGEMENT USER MANUAL
ENTERPRISE STUCTURE
JUNE 5, 2025
1
CONTENT TABLE
TOPIC Pg number
1. Types of display………………………………………………2
2. Enterprise structure………………………………………..6
3. Company code………………………………………………..8
4. Plant……………………………………………………………….9
5. Storage location……………………………………………..10
6. Purchasing organization………………………………….12
7. Types of Purchasing organization……………………14
8. Assigning of all components……………………………15
9. Activation of plant productive………………………...24
2
TYPES OF DISPLAY IN SAP
SAP EASY ACCESS
DISPLAY IMG (IMPLEMENTATION GUIDE)
SAP EASY ACCESS (HOME SCREEN)
3
INTERFACE CONFIGURATIONS OF SAP(MUST)
Click customizing icon
Click options
After clicking options, you will get the new screen named
INTERECTION DESIGN.
You have to click visualization 1 and you will see CONTROLS
Click both the options
Shows keys within…….
Sort by keys……………….
4
Right click on SAP easy access
5
As you can see here, click on settings:
And click Display technical names.
ENTERPRISE STRUCTURE..
6
ENTERPRISE STRUCTURE: The enterprise structure is the essential
elements pr configurations in SAP system which helps to run business
process smoothly…
BUSINESS PROCESS: What and how does a company generate
revenue…
Enterprise structure is the essential part without which we can’t run
business process.
There are five parameters in enterprise structure i.e.
COMPANY
COMPANY CODE
PLANT
STORAGE LOCATION
PURCHASING ORGANISATION
COMPANY: It is the highest organizational unit SAP,
It is the group of company code and it has no its personal plants, and it
doesn’t do production itself…
A company has 6 alpha-numeric digit ID.
HOW TO CREATE A COMPANY IN SAP
MENU PATH: SPRO--DIS IMG—ENTERPRISE STRUCTURE—
DEFINITION—FIN ACCOUNTING—DEFINE COMPANY
7
A new window names INTERNAL TRADING PARTNER
WILL OPEN.
Now you can fill all the information and can create it.
8
COMPANY CODE: A company code is the smallest organizational unit in
sap system for which we have an independent accounting department
within external accounting.
A company /corporate office can have multiple one or more
independent co-codes.
A co-code has 4 alpha numeric digit ID.
MENU PATH: DIS IMG<ENT-STR<DEFINITION<FIN-ACC<COPY-DELETE….
First copy the co-code from standard one and then edit the name of
co-code.
9
PLANT: Plant can be a manufacturing facility, a sales office, a corporate
office itself etc.…
It is responsible for production activities or services…
MENUPATH: DIS-IMG<ENTERPRISESTR<DEFINITION<LOGISTICS<DEFINE
PLANT
10
STORAGE LOCATION: It is a place within plant where materials are
kept.
Plant is also known as valuation area…
MENU PATH: DIS-IMG<ENT-STR<DEFINITION<MATERIAL-MNG<MAINT-
AIN STORAGE LOCATION.
BY CLICKING NEW ENTRIES, YOU CAN CREATE THE STORAGE LOCATI-
-ONS
STORAGE LOCATIONS ARE ALSO KNOWN AS S-LOCS
11
The s-locs are here defined as a number like 1000 and 2000
1000 is for raw material, denoted by ROH.
2000 is for finished material, denoted by FERT.
12
PURCHASING ORGANISATION: Its is a department which deals with
vendors and responsible for all PROCUREMENT activities..
Its is one of the most important organisations in SAP system, and res-
-ponsible for expenditure from a small unit to a large unit.
MENU PATH: SPRO<DIS-IMG<DEFINITION<MAT-MANAGEMENT<
MAINTAIN PURCHASING-ORGANISATION
By clicking new entries and by putting plant ID you can create a new
purchasing organization.
13
14
Types of purchasing organization
Normal purchasing organization.
Standard purchasing organization.
Reference purchasing organization.
NORMAL purchasing organization, which handles general
procurements.
STANDARD purchasing organization, which involves in special
types of procurements like consignment, sub-contracting etc.
A plant can have only one standard purchasing organization.
But can have multiple normal purchasing organizations.
REFERENCE purchasing organization, it is a group of purchasing
Organizations.
It gives nimbleness, system will automatically calculates the
organization which is to be used for procurement...
IN THE SAME WAY WE CAN CREATE THE STANDDARD AND
REFERENCE PURCHASING ORGANIZATIONS...
AS WE DID IN NORMAL PURCHASING ORGANISATIONS.
15
ASSIGNING OF ALL THE COMPONENTS OF ENTERPRISE
STRUCTURE
1.COMPANY TO CO-CODE
MENU PATH: DISP-IMG<ENTERPRISE-STRUCTURE<ASSIGNMENT
<FIN-ACC<ASSIGN CO-CODE TO COMPANY.
After clicking this put your co-code in positioning and connect
It to your company…
16
2.Plant to co-code
Menu path: DISP-IMG<ENTERPRISE-STRUCTURE<ASSIGNMENT
<LOGISTICS GEN<ASSIGN PLANT TO CO-CODE.
17
Now click on new entries and put your co-code and plant…
Here below you can see….
18
3.ASSIGN PURCHASING ORG TO CO-CODE
MENU PATH: DISP-IMG<ENTERPRISE-STRUCTURE<ASSIGNMENT
<ASSIGN PUR-ORG TO CO-CODE.
Here position your purchasing-organization and link it with
With your co-code…
19
4 ASSIGNING PURCHASING ORGANZIATION TO PLANT
MENU PATH: DISP-IMG<ENTERPRISE-STRUCTURE<ASSIGNMENT
<ASSIGN PUR-ORG TO PLANT
Click on assign purchasing organization to plant and then click
New entries and fill info…
20
Here you can see…
21
5 ASSIGNING STANDARD PUR-ORGANIZATION TO PLANT
MENU PATH: DISP-IMG<ENTERPRISE-STRUCTURE<ASSIGNMENT
<ASSIGN STD PUR-ORG TO PLANT
Here you have to search the plant to link it with standard pur-
-chasing organization…
22
6 ASSIGNING REFERENCE PUR-ORG TO PUR-ORGANIZATION
MENU PATH: DISP-IMG<ENTERPRISE-STRUCTURE<ASSIGNMENT
<ASSIGN REF PUR-ORG TO PLANT
You have to click on new entries and fill the information.
Now fill the purchasing organization and reference pur-orga-
23
-nization details and click on RELEASE ORDER & CONDITIONS.
ACTIVATION OF PLANT FOR PLANT PRODUCTIVE…
24
To activate the plant there is functionality called material ledger,
This comes under controlling parameters.
The steps are
1.Assigned valuation area with material ledger.
T-CODE----OMX3
2.Activation of material ledger.
T-CODE—OMX1
3.Activation of valuation area.
T-CODE—CKMSTART
HERE BELOW YOU CAN SEE, FOR 1ST STEP.
By
clicking new entries, you can put your plant and put material led-
-ger value i.e. 9000 and save it…
25
ACTIVATION OF MATERIAL LEDGER…
Here you have search and click on ML act and put the value 2 in PRICE
DETERMINATION…
It is one of the most important configurations…
26
ACTIVATION OF VALUATION AREA(PLANT)
Here put your plant and remove the ticks from BACKGROUND
PROCESSING & TEST RUN..
27
THE SCREEN SHOULD BE GREEN, IF NOT THEN YOU HAVN’T
FOLLOWED
THE STEPS PROPERLY.
