Building Organization Structure

In ERP, a company is made up of a variety of operational groups. These groups or organizational units can include sales, purchasing, accounting, distribution, and so forth. SAP R/3 System is designed to support each of these groups. Different software applications in the R/3 System can be linked to these organization units to create a completely integrated company structure.

Flexible organizational units in the R/3 System let user represent user’s organization with a comprehensive company structure. The combination and integration of organizational units form the legal and structural basis of a company. For example, organizational units can interface with materials management, sales and distribution, and financial accounting. Different application areas in the R/3 System can be linked through organizational units to create a completely integrated company structure.

Company Code

A Company code represents the XXX client Group legal entity and accounting unit where balance sheet and profit and loss statements are created. There will be XX Company Codes representing XXX client Group.

Plant

A plant is an organizational unit within the company, against which materials are purchased and stored. Only the above company codes are considered for the WM implementation.

Storage Locations

A storage location is a unit that allows the differentiation of material stocks within a plant. Inventory management on a quantity basis is carried out at storage location level. Physical inventory is also carried out at storage location level. Each plant may have multiple storage locations.

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