Organizational Structure in SAP

Organizational Structure in SAP

            Organizational structure is an hierarchy of organizational units. Each organizational unit is an element of organizational structure.Organizational structure represents departments, workflow, flow of authority and responsibility etc..

Organizational Structure in SAP

Client:

          Commercially, technically, Client is also an organizational unit. Client is an highest level organizational unit in the organizational structure. Set of tables, master records are maintained at client level.

          Client is represented with three digit number. Master client (000, 001), Early watch client (066), IDES or Training client (800) are clients in standard SAP. BASIS people creates new clients.

Company code:

         Company code is a separate legal entity or separate accounting department. Accounting people work at company code level. Balance sheet, Profit & Loss statement and all financial statements maintained at company code level. Company code is represented by four digit code. It may be numeric or alphabetic or alpha numeric.

Purchase Organization:

        Purchase organization is responsible to procure materials or services from external vendor or internally from plant. Purchase organization is represented by four digit code. It may be numeric or alphabetic or alpha numeric. According to function and responsibilities purchase organizations are six types. Viz.,

1. Plant specific or Local plant purchase organization

2. Cross plant purchase organization

3. Cross company code purchase organization

4. Central purchase organization

5. Standard purchase organization

6. Reference purchase organization.

Plant:

       Plant is an organizational unit where production takes place. Plant is represented by four digit code. It may be numeric or alphabetic or alpha numeric.

Storage location:

       Storage location is an organizational unit where materials (viz.,raw materials, finished goods, semi finished goods etc) are stored.Storage location is represented by four digit code. It may be numeric or alphabetic or alpha numeric.

Organizational Structure in SAP