SAP MM Organizational Structure

 SAP Materials Management comes Logistics, which is part of SAP’s ERP suite SAP ECC. 

The Organizational structure contains the following levels:

• Client
• Company code
• Plant
• Storage Location
• Purchase Org

Plant is a place of Production of where the materials are kept in single or multiple storage Locations. 

Every plant has a company code that belongs to a client. 

A Client can have multiple companies, each having a unique company code. 

A company can have multiple plants. 

Each plant can have multiple Storage locations, where the materials are kept. 

A plant can be assigned to only one company code.

Purchasing Organization must be assigned to plant. Without this, no procurement can happen.  

A Purchasing Organization can be assigned to multiple plants belonging to same Company code. 

A Purchasing Organization can be assigned to multiple plants belonging to multiple Company codes. In this case the Purchase Organization is called Central Purchase Organization. 

Purchasing Organization can be optionally assigned to a Company code. In this case, because the Purchase Organization is linked to a Company code, it is restricted from doing Procurement for the plants belonging to other Company codes. Even if its assigned to a Company code, it will still have to assigned to a Plant. (In the diagram above, the link between Purchase Org to Company code is 0..1 to 1)