MM Enterprise Structure Configuration

MM Enterprise Structure Configuration

 Settings at Enterprise Structure - Definition
Define valuation level:

You define the valuation level by specifying the level at which material stocks are valuated. You can valuate material stocks at the following levels:

•    Plant level

Valuation must be at this level if you want to use the application component Production Planning (PP) or Costing

•    Company code level

The decision you make is valid for the whole client. SAP recommends setting material valuation at plant level. Once set, it is not possible to switch the valuation level from plant to company code, or vice versa.
Choice of valuation level affects the following among others:

•    Maintenance of material master records

Depending on the valuation level chosen, accounting data (in particular the valuation price) is maintained for each plant or for each company code in the material master record.

At the IMG Menu, select the option shown:

The system by default sets the valuation at Plant Level.
 

Define Plant:

The plant is an operating area or branch within a company.
The plant is embedded in the organizational structure as follows:

•    The plant is assigned to a single company code. A company code can have several plants.
•    Several storage locations in which material stocks are managed can belong to a plant.
•    A single business area is assigned to a plant and to a division.
•    A plant can be assigned to several combinations of sales organization and distribution channel.
•    A plant can have several shipping points. A shipping point can be assigned to several plants.
•    A plant can be defined as a maintenance planning plant.

A plant has the following attributes:
•    A plant has an address.
•    A plant has a language.
•    A plant belongs to a country.
•    A plant has its own material master data. You can maintain data at plant level for the following views on a material master record in particular: MRP, Purchasing, Storage, Work scheduling, Production resources/tools, Forecasting, Quality management, Sales, Costing.
The plant plays an important role in the following areas:

•    Material valuation : If the valuation level is the plant, the material stocks are valuated at plant level. If the valuation level is the plant, you can define the material prices for each plant. Each plant can have its own account determination.

•    Inventory management : The material stocks are managed within a plant.
•    MRP : Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants.
•    Production
•    Costing : In costing, valuation prices are defined only within a plant.
•    Plant maintenance : If a plant performs plant maintenance planning tasks, it is defined as a maintenance planning plant. A maintenance planning plant can also carry out planning tasks for other plants (maintenance plants).

At the IMG Menu choose option as below:
 

Use the New Entries Option to create a new plant. Choose the “Details” option to add address, language, calendar and other details.

Maintain the address details in the address tab:

Choosing the Address option opens the dialog box  as seen in screen below:
 

Maintain the details in the dialog box. In the main screen maintain the factory Calendar.

Jurisdiction Code must be Blank as we are using TAXINN.

Maintain Storage Locations

A storage location is the place where stock is physically kept within a plant.
A storage location has the following attributes:
•    There may be one or more storage locations within a plant.
•    A storage location has a description and at least one address.
•    It is possible to store material data specific to a storage location.
•    Stocks are managed only on a quantity basis and not on a value basis at storage location level.
•    Physical inventories are carried out at storage location level.
•    Storage locations are always created for a plant.
At the IMG Menu as in screen below, choose “Maintain Storage Location”.

In the screen below choose the plant for which Storage Locations are to maintained:

Maintain the Storage Location name and description in the new entries screen.

Maintain Purchasing Organization:

In this step, you set up your purchasing organizations.
From the Materials Management and Purchasing view, the purchasing organization is responsible for all purchasing activities (including the processing of requests for quotations and purchase orders, for example).
The purchasing organization is integrated within the organizational structure as follows:
•    A purchasing organization can be assigned to several company codes.
(= Corporate-group-wide purchasing).
•    A purchasing organization can be assigned to one company code.
(= Company-specific purchasing).
•    A purchasing organization can also exist without being assigned to a company code.
o    Since each plant must be assigned to a company code, the latter can be determined via the plant at the time of each procurement transaction even if the procuring purchasing organization has not been assigned to a company code.
•    A purchasing organization must be assigned to one or more plants.
(= Plant-specific purchasing).
•    A purchasing organization can be divided into several purchasing groups that are responsible for different operational areas.
•    Each purchasing organization has its own info records and conditions for pricing.
•    Each purchasing organization has its own vendor master data.
•    Each purchasing organization evaluates its own vendors using MM Vendor Evaluation.
•    Authorizations for processing purchasing transactions can be assigned to each purchasing organization.
•    All items of an external purchasing document, that is, request for quotation, purchase order, contract, or scheduling agreement, belong to a purchasing organization.
•    The purchasing organization is the highest level of aggregation (after the organizational unit "client") for purchasing statistics.
•    The purchasing organization serves as the selection criterion for lists of all purchasing documents.
For TATRA the following are defined:

Cross Plants Purchasing Organisation
A purchasing organization is responsible for the purchasing activities many plants. In this case you attach the purchasing organization to many plants. For Tatra two purchasing oragnisations are defined :
1000 :For regular purchase
1001 :For capital items.
Each of these plants can be responsible for purchasing activities in any other plant :

 Choose the IMG menu as in screen below:

 


Maintain the name and description of the Purchasing Organization in New Entries.

Assignments of Enterprise Structure Elements
Assign plant to company code
A plant can only belong to one company code.

The assignments maintained are below:

Assign Purchasing Organization to Company Code & Plant:

In this Implementation Guide (IMG) activity, you assign purchasing organizations to company codes and also to plants.

Purchasing Organization and Plants :

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