SAP PP – Organisation Structure

The SAP PP organizational structure centers around the Plant and Storage Location, which are crucial for managing production planning, execution, and goods movement. This structure ensures that manufacturing activities are aligned with material availability, capacity, and cost tracking.

Key Elements of SAP PP Organizational Structure

Client

• Top-level entity in SAP; represents the entire enterprise.

Company Code

• Legal unit for financial reporting; shared with SAP FI.

Plant

• Core unit in SAP PP; represents a manufacturing facility, mill, or factory.
• Responsible for planning, production execution, and inventory management.
• Linked to MRP, work centers, and production orders.

Storage Location

• Subdivision within a plant for storing materials.
• Used for staging components and managing finished goods.

Work Center

• Physical or logical location where operations are performed.
• Assigned to routing and capacity planning.

Routing

• Sequence of operations required to produce a material.
• Assigned to materials and work centers.

Bill of Materials (BOM)

• Hierarchical structure of components needed to manufacture a product.
• Assigned to materials and used during MRP and order creation.

Production Version

• Combines BOM and routing for a specific manufacturing scenario.
• Enables version control and alternate production paths.