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Enterprise Structure SAP MM

Client It is the highest org element in SAP. What ever done in SAP is
always at the client level. Client is 3 digit numeric code.
Legal or business Term: It is any customer buying SAP software
Technology Client: Technical or Technology platform or environment
on which day to day business transactions will take place. Master
data is also maintained and managed.
Product: Business Segments (Industry Segment Industry Specific
Consolidation at Tata Sons as holding company




Charts of Account: Finance: Set a GL accounts. Country Specific or

else it can be clubbed depending upon volume of business and ease of
doing business.
Company Code: Finance: Legal entity. It is the smallest unit from
financial perspective and the highest org unit from logistics

Purchase Organisation: highest org element from procurement

aspect. It can be at 3 different levels.
a. Purchase Orgnz it can be above the company code. Indicating
central procurement irrespective of nature of business or across
legal entity setup
b. Purchase Orgnz it can be at the level of company code.
Meaning it is one to one mapping with the legal entity or
company code.
c. Purchase Orgnz

can be at the level of Plant (Mfg. Setup or

Purchase Group: Set of people responsible to procure material.

Nature of Material
Logistics or Inventory Management Aspect
Company Code concept of Plants (Mfg. Unit or a godown or depot)
Plant: Define in various ways
Production Aspect It is always a manufacturing setup
Sales & Distribution Aspect it is always a delivering plant.
Shipping point which is linked to it. Which means the plant is capable
for dispatch of goods.
Materials Mgtm Aspect: It is a storage or a godown or depot where
goods are placed.
Under Every plant there is a storage location: Storage location is
where the goods are stored or kept physically.

Raw Material Store

Semi-Finished Stores
Finished Goods
Damaged Goods
Sales Return
QC storage location

Warehouse: Combination of Plant & Storage Location. A warehouse in

SAP is denoted by a 3 digit number called the Warehouse Number.
Plant A (4 digit numeric code 1100) + FG stores (FG01) Warehouse
which is denoted by a number for example. 010 (1100+FG01=010)
warehouse number.
Products of SAP (Components)
ECC ERP Component
SD, MM (inventory mgtm + procurement), FI, CO,
WM (higher version of inventory mgtm), PS, PP, QM, PM
EWM Extended Warehouse Mgtm.
WM Enterprise Structure,
Inbound & Outbound Logistics (Shipping LE)
Picking, packing, putaway
Internal & External Movements