Purchasing organisation

 purchasing organisation:

Definition : A purchasing organisation is simply defined as a group of purchasing activity that is associated with all or a specific part of the enterprise.


*  SAP can be defined to allow all purchasing department to be accurately reflected.
Navigation path:
                                                    IMG
                                                       ↓
                                        Enterprise structure
                                                        ↓
                                                 Definition
                                                        ↓
                                          Materials management
                                                        ↓
                                      Maintain purchasing organisation.




Types of purchasing organisations:

1. Purchasing at an enterprise level.
2. Purchasing at the company level.
3.purchasing at the plant level.
4.Reference purchasing organisation.


1. Purchasing at an enterprise level:

 if a company have central purchasing department, the purchasing organisation is defined in SAP and then assigned to all companies.

2. Purchasing at the company level:

for some company the purchasing function is created and assigned for each company code.

case study:

if many company code were created in single country. it is possible to assign same purchasing organisation for all the company codes in same country.

the purchasing organisation can be assigned to a company code by using transaction code ox01.

Navigation path:

                                                             IMG
                                                               ↓
                                                  Enterprise structure.
                                                               ↓
                                                   Assignment material management.
                                                               ↓
                                                 Assign purchasing organisation to company code.

3.purchasing at the plant level:

* In an enterprise that has companies with large autonomous plants the purchasing decisions may be at a local level.

This scenario has an advantage when the vendors are at a local level and few vendors supply material or services to more then one plant.


Navigation path:

                                                          IMG
                                                            ↓             
                                            Enterprise structure
                                                            ↓
                                                       Assignment
                                                             ↓
                                               Material management
                                                              ↓
                                             Assign purchasing organisation to plant

4.Reference purchasing organisation:
     In large companies, the strategic purchasing function analysis purchasing data and works to  negotiate  the best prices for material & services from global vendors for both good and services.

* A purchasing organisation must be assign to reference purchase organisation to have access the information on the system.

Navigation path:

                                                         IMG
                                                            ↓
                                                 Enterprise structure
                                                            ↓
                                               Material management
                                                            ↓
                          Assign purchasing organisation to reference purchasing organisation.


Practically:

Access T-code: SPRO

click on reference IMG as shown below:

Navigate to path as shown below:

provide the details and SAVE

conformation screen

creation of new purchasing organisation is successfully completed


Cheers
Ram Naveen

Storage sections and storage Bins

Storage sections and storage Bins:

storage section: This is simply a group of similar storage bins.

Even if the customer does not want to defined storage sections.

* one storage section must be defined per storage type, this is normally defined as 001 in the IMG .

Navigation path:

                                                               IMG
                                                                  ↓
                                                      logistics Execution.
                                                                  ↓
                                                       warehouse management.
                                                                   ↓
                                                      Master data.
                                                                   ↓
                                                      Define storage section.

Storage bins:
storage bins are the lowest level of storage and are not defined in the IMG.

Authorized warehouse staff can quickly and frequently change these.
storage bins can be defined manually using transaction lS01N
automatically by using ls10.

Ware house and storageTypes

ware house and storage Types

The ware house is linked to the MM module by assigning the ware house to the storage location in MM, if the company has WM and MM activated, the goods movements will require knowledge of the major elements of WM.

A ware house is a physical storage location, that contains storage types,which are further divided in to storage bins.

Navigation for ware house creation:

 IMG-->Enterprise structure-->definition -->logistics Execution-->define,copy,delect,check ware house.

ware house can be defined in 3 character string in SAP and there are no address details associated with a warehouse.

Assign a ware house to plant & storage location:

                                                                             IMG 

                                                                                ↓  

                                                                    Enterprise structure

                                                                                 ↓ 

                                                                         Assignment

                                                                                 ↓

                                                                        Logistics Execution
                                                                                 ↓

                                                                 Assign WM to plant/Storage location

Storage Type:

storage type is defined as subsection of warehouse in terms of area with a number of storage bins.

example types of storage types are;
1.cold room.
2.Bulk Storage.
3.High rack Area.

* storage types predefined by SAP are called interim storage types.
* these are defined numerically from 900 to 999.

The areas are used by SAP for movement postings such as good receipt, goods issue,posting differences.

Navigation path:

                                                               IMG
                                                                  ↓
                                                  Logistics Execution
                                                                  ↓
                                                  Warehouse Management
                                                                  ↓
                                                       Master data
                                                                    ↓
                                                       Define storage Type

Note: Each warehouse can have any number of storage types defined.

SAP MM - automatic storage location

                                                 SAP MM - Automatic storage location

• It is possible to create storage locations automatically when an inward goods movement for a material is performed.

• The configuration needs plant and type of movement to be defined to allow automatic creation of storage location.
• Advantage: No need to maintain storage related data.
• Disadvantage:This is only applicable for movement for normal stock, not special stock.
• the navigation path of creating automatic storage location is shown below:

spro-->IMG-->

• based on requirement choose option here.                                                                            

• click on position and provide the plant number and check the check box besides to plant in create Sloc. statement.

Note: process for movement type is also similar to plant type as shown above.

SAP MM - storage locations

Storage location in SAP MM:

• Usually the storage location will be locate in the same plant.
• At least one storage location will be provide for each plant as a minimum by Material management module.
• storage location may differ from customer to customer.
• for some companies there should be a position like packing and selling directly, so the question of individual storage location will not be there.
• As storage location in SAP MM is having with least priority and at the same time may varies from time to time, some time requirement of warehouse management is required.this may provide the opportunity to manage storage location.
• Based on the ERP company the  need of storage location is not important will be defined.
• for some ERP company Warehouse Management(WM) is required, which is linked with Materials management.this is achieved by assigning a warehouse to a storage location or number of storage locations.

creation of storage location: 

• login to respective server.

• T-code- spro

• click on SAP Reference IMG   as shown in the below screen shot.

• follow the path as show below                                                                                                      

• enter the plant name and click continue.                                                                                        

• screen prompts to the following screen and click on New Entries button  to create new storage location.

• Enter storage locations and description details and double click on Addresses of storage .   

make sure that cursor is on new storage location row.                                      

                                        

• after double click on Address of storage location button the below screen will appears, click on New entry here and enter No.1 in the field.

• click on SAVE.                                                                                                                                  
  

• screen prompts to the address screen as shown below. enter all the necessary details and click on continue.

• Transport request screen will appears as below.click on create option and create new Transport request as below.

\

• The final conformation screen will be as below.                                                                               

NAV1 storage location created successfully

Assigning new plant to company code in SAP

Assigning a plant:

• once the valuation level has been assign that assign the plant can assign to company code.

Transaction used to assign plant to company code: OX18 or SPRO.

• Access the T-code - SPRO.

click SAP Reference IMG. As shown below.

• follow the path as below shown.

provide just company code and plant name details and click on SAVE. the name of the plant and company Name will fill automatically.

Transport request screen will appears as follows in the below screen.

conformation screen will appears finally.

Plant assigned successfully to company code.

here:

company - relian

company code - rrr1

plant - ram4

SAP MM - valuation level

Sap Mm-Valuation Level by Ramnaveen Thota on Scribd