The following are the key organizational levels for materials management
Client
Company Code
Plant
Storage Location
Purchase Organisation
Purchase group
Client
Client is the highest level in the SAP Organisation Structure. Client will have individual set of master data and table sets. The data maintained at client level will be applicable for all organizational levels.
Company Code
Company code is the smallest unit under a client
Individual Financial accounting unit
Individual P & L, Balance Sheet
Plant
Plant is a organizational unit which is divided based on the production, procurement, maintenance and materials planning,
Plant can be a production unit which can produce the materials or Depot.
Data stores in plant level will be applicable for the specific plant only.
Plant will be representing with 4 Digit alphanumeric key
Storage location
Storage location is an organizational unit which is allocated to a specific plant.
It is used to store the material physically and similar materials can club and stores in a specific storage location.
Data stores in storage location level will be applicable for the specific storage location only.
Storage Location will be representing with 4 Digit alphanumeric key
Purchase Organisation (Pur.Org)
Purchasing organisation is organisational unit under logistics and takes care of procurement activities
Pur.Org will be responsible to procure the materials and services related to the company codes and plants which is assigned to the respective purchase organisation.
We can procure the materials and Services in the following forms based on the requirements
Enterprise wide: It will be taken care of the procurement at Client level
Companywide: It will take care of the procurement at Company code level
Plant wide: It will take care of the procurement at Plant level
Purchasing Group (Pur.Grp)
Purchasing group is determining a buyer or group of buyers who takes care of purchasing activities of specific area.
Purchasing group identifies with 3 Digit alpha numeric key.