Enterprise Structure
Plant
A plant can be a manufacturing facility, sales office, corporate head office, maintenance plant, or
central delivery warehouse.
One Plant can only be assigned to one Company code. One Company code can have multiple
Plants
One Plant can have multiple Shipping points. One Shipping point can only be assigned to one
Plant.
One Plant can have several storage locations.
Material valuation can be enable at Plant level.
Configurations
Create Plant (OX10/EC01)
Assign Plant to Company code (OX18)
Storage Location
A storage location is a place within a plant where materials are kept.
One Storage location can have multiple addresses.
Stocks are managed on quantity basis at storage level.
Configurations
Create Storage location (OX09)
Purchasing Organization
The purchasing department deals with vendors and is responsible for all procurement activities. The
purchasing department is mapped as a purchasing organization in the SAP system.
Plant Specific Purchasing Organization
(This type of Purchasing Organization is procure only for one Plant)
Cross Plant Purchasing Organization
(This type of Purchasing Organization can procures for several Plants)
Company code Specific Purchasing organization
(This type of Purchasing Organization is procures only for one Company code)
Cross Company code Purchasing Organization
(This type of Purchasing Organization can procure for several Company codes)
Standard Purchasing Organization
(This type of Purchasing Organization is used for Automatic PO creation)
Reference/Central Purchasing Organization
(This type of Purchasing Organization is used for central procurements)
Assigning Purchasing organization to Plant is mandatory.
Assigning Purchasing organization to Company code is optional.
One Purchasing organization can procure any number of Plants.
One Purchasing organization can procure any number of Company codes (in this case, we
should not assign the Purchasing organization company code, but only to their Plants).
One Plant can have any number of Purchasing organizations.
If multiple Purchasing organizations are assigned for one Plant, then maintain one as
Standard Purchasing organization (for automatic PO creation)
Configuration
Create Purchasing organization (OX08).
Assign Purchasing organization to Plant (OX17)
Assign Purchasing organization to Company code (OX01)
Assign Standard Purchasing organization to Plant (OMKI)
Assign Reference Purchasing organization to Purchasing organization (OMKJ)
Purchasing Group
A purchasing group is a term for a buyer or group of buyers responsible for certain purchasing
activities.
Configuration
Create Purchasing Group (OME4)
Master Data
Master data refers to a collection of frequently used data records that don’t change often.
Types of Data
Master Data
(Material, Vendor masters…etc.)
Transactional data
(PO, Outline agreements…etc.)
Configuration Data
(Plant, storage location…etc.)
Types of Master Data
Material Master Data
Vendor Master Data
Purchasing Information Record
Service Master Record
Source List
Quota Arrangement
Material Master Data
Key Elements
Material Type
(it controls Quantity & Value update, Type of procurement, Account category reference,
Price control, Field status, Number range, Number assignment…etc.)
Industry Sector
Material Group
Data Maintained Levels
At Client level
(General data)
At Plant level
(Purchasing data)
At Storage location level
(storage data)
Major Material Types
Material Quantity Value Price
Description
Type Update Update Control
ROH Raw Materials X X V
Semi-Finished
X X S/V
HALB Materials
FERT Finished Products X X S
VERP Packaging Materials X X V
Non Valuated
X
UNBW Materials
NLAG Non Stock Materials
HAWA Trading Goods X X V
ERSA Spares X X V
SERV Service Product
ABF Waste/Scrap X X V
Operating Supplies
X X V
HIBE (Consumables)
Configurations
Define Industry sector (OMS3)
Define Material type (OMS2)
Create Material group (OMSF)
Material Field groups (OMSR)
Material field selection for data screens (OMS9)
Define Number range for Material (MMNR)
Create Material (MM01/MM02/MM03)
Delete Material (MM06)
Note: A Material can have both Internal & External number ranges.
Vendor Master Data
Key Elements
Vendor Account Group
(it controls number assignment, number range, type of vendor, partner function, field
status…etc.)
Data Maintained Levels
At Client level
(general data)
At Company code level
(transaction data)
At Purchasing org level
(purchasing data)
Configurations
Block Vendor (XK05)
Delete Vendor (XK06)
Define Regular vendor (plant level) (OMKH)
Create Account group (OMSG)
Define number range for Account group (XKN1)
Assign number ranges to Account groups (OBAS)
Create a Vendor (XK01/MK01/FK01)
Define Business partner group
(Cross application components-SAP Business partner-Business partner-Basic settings-Number
ranges and groupings)
Define number range for BP grouping (BUCF)
Assign vendor account group to BP group
(Cross application components-Master data synchronization-CVI-Business partner settings-Settings
for vendor integration-Field assignment for vendor integration-Assign keys-Define no assignment
for direction BP to vendor)
Customer & Vendor Assignment
Create Customer & Vendor and in company code-payment transactions tab check the clearing with
customer/vendor check box.
And, in sales/purchasing data under control tab enter the customer/vendor number.
While the pop up is coming, make sure to select the no option.
Purchasing Info Record
Purchasing info records contain the information for material and vendor combinations. You can maintain
the following data in purchasing info records:
Current and future prices and conditions (gross price, freight, and discounts)
Delivery data (planned delivery time and tolerances)
Vendor data (vendor material number, vendor material group, etc.)
Info records can be created manually or automatically (through PO’s & outline agreements).
Info record can be created with material group (for consumable procurement)
Data Maintained Levels
At Client level
(general data- vendor, material numbers, reminders, order unit…etc.)
At Purchasing organization level
(delivery time, conditions…etc.)
At Purchasing organization/Plant level
(delivery time, conditions…etc.)
Info Categories
Standard
Subcontracting
Consignment
Pipeline
Configurations
Create Info record (ME11/12/13)
Maintain number ranges for Info record (OMEO)
Delete Info record (ME15)
Activate consignment info record (OMEV)
Source List
The Source is maintained at Plant/Material level.
If the Source list is mandated at Plant level, then all the Materials which are created under Plant
should be maintained with Source list.
Source list can be maintained manually or automatically (through info record, outline agreements
Source determination
Quota arrangement
Source list
Outline agreements
Info record
Note: If the source determination is enabled, then the system will check for the source according to above
sequence.
Configuration
Create Source list (ME01)
Source list at Plant level (ME05)
Delete Source list (ME07)
Source list requirement at Plant level (OME5)
Quota Arrangement
An enterprise may have different sources of supply for the same material. If you want to distribute POs
among these sources of supply in a systematic manner, you can use the quota arrangement function.
Quota rating
Quota rating = (Allocated quantity + Base quantity) / Quota
System uses the Quota rating to find out the source of supply.
Quota is the portion which has been given to the vendor.
If several source of supply have the same quota rating, then system will assign the quota to the
one which has lowest quota rating.
Quota arrangement has connection with the following transactions:
Purchase requisitions
Purchase orders
Planned orders
Production orders
MRP
Scheduling Agreement
Configuration
Create Quota arrangement (MEQ1)
Define Quota arrangement usage (OMEQ)
Define Number ranges for Quota arrangement (OMEP)
Service Master Record
Configuration
Create Service (AC03)
Create Service group (OMSF)
Assign Valuation class to service group (OMQW)
Define Service category (OMV1)
Define number ranges for Service category (ACNR)
Define number rages for Service entry sheet (OMY9)
Maintain the Service master conditions at service level (ML45)
Maintain the Service master conditions at service and vendor level (ML39)
Maintain the Service master conditions at service, vendor and plant level (ML33)
