Organizational Structure - SAP Implementation

Organizational Structure - SAP Implementation

Organizational Structure The organizational structure enables laying the foundation for an organization’s logistic functions (proc... 2:57 AM

Organizational Structure

The organizational structure enables laying the foundation for an organization’s logistic functions (procurement, inventory and production) within the SAP system.

MyCompany structure is mapped and designed using the following organizational units in SAP system.

The organizational unit that is relevant for MM module includes:

·         Plant

·         Storage Location

·         Purchasing Organization

·         Purchasing Group

Plant

In SAP, the plant refers to an operational unit within a company code, which plays an important role in material valuation, procurement, inventory management, production, costing and sales and distribution.

It also serves to subdivide an enterprise according to production, procurement, and materials planning aspects. It is a place where either material is produced or goods and services are provided example: Production Facility.

In MyCompany, it is used to represent its production plant. There is only one plant at the moment (provision of additional plants has been kept) that has been defined as follows:

Plant ID	Plant Definition
1000	MyCompany

 

Storage Location  

           

In SAP, a storage location is the place where stock is physically kept within a plant. Storage location can be used to differentiate between various types of stock in a site.

Warehouses and storage areas are represented in SAP as storage locations. The storage locations have been created according to the type of inventory that they carry. The following areas have been defined:

S.Loc Code	Storage Location Description	Storage Location for Material(s)
0001	Raw Material WH	Raw Material
0002	Packaging WH	Packaging Material
0003	Semi- Finished WH	Semi- Finished
0004	Finished Goods WH	Finished Products
0005	WIP WH	Production Relevant Materials
0006	WIP Sterile	For sterile area
0007	Phy. Samples WH	Physician Samples
0008	Direct Sales WH	Direct Sales Warehouse (Finished material)
0009	M&P WH	M&P Virtual Warehouse
0010	Toll Materials WH	Toll Materials
0011	Rejected WH	All Materials
0012	Promotional WH	Promotional Materials
0013	Engineering WH	Machine & Spares
0014	General WH	All Materials
0015	Quality WH	All Materials
0016	NPD WH	NPD material

Provision of opening of other virtual warehouse will be kept.

Note: Storage Location description has a limit of 16 characters.

Purchasing Organization

In SAP, purchasing organizational unit responsible for the procuring of materials or services for one or more plants as well as negotiating general conditions/prices of purchase with vendors. The purchasing organization assumes legal responsibility for all external purchase transactions.

There is no requirement to create more purchasing organization in
MyCompany
as there is only one plant at the moment that performs all procurement activities. (Provision of more than one Purchasing Organization will be kept)

Purchasing Organization	Description
1000	MyCompany Purchase Org.

 

Purchasing Group

In SAP, a purchasing organization is divided into purchasing groups (buyer or group of buyers) that are responsible for operational tasks.

The purchasing group is also used in the system to control system data accessibility in combination with other settings e.g. purchasing group in Purchase Order.

In
MyCompany
, the purchasing groups are identified for a buyer, who is responsible for certain purchasing activities e.g. import, local.

The following naming convention will be used for:-

Purchasing Group	Description
001	Local
002	Import

The purchase group will allow:

·         Easy identification by respective buyers

·         Allowing proper authorization / accessibility to purchases within individual buyers own record.