Introduction to SAP MM Organizational Structures
SAP Materials Management (SAP MM) is one of the key modules in SAP ERP that focuses on procurement and inventory functions. To ensure a seamless flow of materials and data across departments, it's essential to correctly configure organizational structures using IMG MM transaction codes. Organizational structures like plants, storage locations, and purchase organizations form the backbone of logistics and procurement operations. Let’s dive deep into configuring these structures step by step.Step-by-Step Configuration in SAP MM
Understanding and properly navigating the SAP Implementation Guide (IMG) is crucial. Each structural element must be defined and assigned systematically. Below are the details.Define Plant in SAP MM
SPRO Navigation Path:
SPRO > IMG > Enterprise Structure > Definition > Logistics General > Define, Copy, Delete, Check PlantSteps to Create a Plant:
1. Open the path above in SPRO.2. Select Copy, Delete, Check Plant.
3. Use the option Copy from 1000.
4. Enter your custom plant name.
5. Click SAVE.
Tip: Use a meaningful naming convention for easier identification across modules.
Define Storage Location
SPRO Navigation Path:
SPRO > IMG > Enterprise Structure > Definition > Material Management > Maintain Storage LocationSteps:
1. Click on New Entries.2. Enter the plant you created earlier.
3. Add the new storage location code and description.
4. Click SAVE.
Storage locations allow for detailed inventory tracking within a plant. You can have multiple locations under one plant.
Define Purchase Organization
SPRO Navigation Path:
SPRO > IMG > Enterprise Structure > Definition > Material Management > Maintain Purchasing OrganizationSteps:
1. Choose New Entries.2. Enter a purchase organization code and description.
3. Click SAVE.
A purchasing organization handles procurement activities and can be assigned to one or more plants.
Assigning Organizational Units in SAP MM
Once definitions are in place, they must be assigned to ensure integration with financial and logistics modules.Assign Plant to Company Code
SPRO Path:
SPRO > IMG > Enterprise Structure > Assignment > Logistics General > Assign Plant to Company CodeSteps:
1. Select your plant.2. Remove any unwanted assignments.
3. Choose your company code.
4. Click on Assign, then Tick to confirm.
This links logistics operations to the company’s financial structure.
Assign Purchase Organization to Company Code
SPRO Path:
SPRO > IMG > Enterprise Structure > Assignment > Material Management > Assign Purchasing Organization to Company CodeSteps:
1. Delete old assignments.2. Select your purchasing organization.
3. Assign it to your company code.
4. Confirm by clicking the tick mark.
Advanced Configuration and Mass Maintenance
Create the Same Storage Location for All Plants
To apply a uniform storage location structure across plants:- Use Transaction Code: OX09
- Enter plant-wise data for storage locations.
Mass Update Valuation Class in Material Master
Problem:
You identified errors in the valuation class for several materials.Solution:
- MM60: Use this to list all materials.
- MM17: Use this for mass maintenance and update the valuation class.
Common Mistakes and Troubleshooting
1. Incorrect Assignments: Ensure each plant and purchase org is assigned correctly.2. Missing Links: If materials aren't behaving as expected, check assignments and org structures.
3. Valuation Errors: Use mass maintenance to rectify in bulk.
Tools & Transactions for MM Organizational Structures
| T-Code | Purpose |
|---|---|
| OX10 | Define Plant |
| OX09 | Storage Location |
| MM60 | Display Material List |
| MM17 | Mass Update Material Master |
| SPRO | Implementation Guide |
Best Practices for MM Configuration in SAP
- Always back up before changes.
- Maintain a naming convention for all elements.
- Restrict access using role-based authorization.
- Document every change with timestamps and user IDs.
- Regularly audit org structure data.
FAQs about SAP MM Organizational Structures and Transaction Codes
1. What is a plant in SAP MM?A plant is an organizational unit where materials are produced, or services are provided.
2. Can I assign one purchase organization to multiple
plants?
Yes, you can assign a centralized purchase organization
to multiple plants.
3. What’s the difference between storage location
and plant?
A plant is a broader entity, while a storage location
is a sub-unit for managing inventory.
4. How can I copy existing organizational elements?
Use the “Copy from” function in SPRO paths to duplicate
existing configurations.
5. What to do if valuation class is wrong for many
materials?
Use MM60 to find materials and MM17 for mass updates.
6. How do I ensure all plants have the same storage
locations?
Use OX09 and apply the same entries to all relevant plants.
Conclusion
Setting up IMG MM transaction codes organizational structures correctly in SAP MM is essential for smooth procurement and logistics operations. From defining plants and storage locations to assigning company codes and purchase organizations, every step plays a crucial role. With best practices, proper tools like MM17, and systematic configuration, your MM setup can be both efficient and scalable.