Organizational Units

Organizational units combined altogether form the framework of company. These organizational units can be considered as different levels which describe the structure of an enterprise. Every level has some particular functionality associated with it. Also every level in one or other way is related to each other. These levels are placed according to some hierarchy company being at the top.

To establish relationship between these levels we have to assign them to one or other in such a way that they still lie in the same hierarchy. For Example: As Company is at top level and plant is below it, so it is necessary that plant has some relation with company (As plant is a sub part or smaller division of company), so plant will be assigned to company. Four basic and must assignments in standard SAP are:

• Plant to Company code
• Purchasing organization to company code
• Purchasing organization to Plant
• Standard purchasing organization to plant

All the assignments in SAP will be done through Display IMG screen as shown below.

Path to reach Assignment: IMG => Enterprise Structure => Assignment

Plant to Company Code

Plant is one level below company code. So we need to assign plant to company code. Following steps will take you through the procedure of assigning plant to company code:

Path to assign plant to company code:

IMG => Enterprise Structure => Assignment => Assign Plant to Company Code

TCode: OX18

On display IMG screen select Assign plant to company code execute icon by following above path.

Select New Entries icon.

Enter name of plant and company code. Click on save. Plant is now assigned to company code.

Purchasing Organization to Company Code

Purchasing organization can be at company code level i.e. centralized purchasing organization. So we need to assign this purchasing organization to company code. Following steps will take you through the procedure of assigning purchasing organization to company code:

Path to assign purchasing organization to company code:

IMG => Enterprise Structure => Assignment => Materials Management => Assign Purchasing Organization to Company Code

TCode: OX01

On display IMG screen select Assign Purchasing Organization to Company Code execute icon by following the above path.

We can view existing assignment and also we can change accordingly. Click on save after making changes. Purchasing organization is now assigned to company code.

Purchasing Organization to Plant

Purchasing organization can be at plant level i.e. plant specific. So we need to assign this purchasing organization to plant. Following steps will take you through the procedure of assigning purchasing organization to plant:

Path to assign purchasing organization to plant:

IMG => Enterprise Structure => Assignment => Materials Management => Assign Purchasing organization to Plant

TCode: OX17

On display IMG screen select Assign purchasing organization to plant execute icon by following the above path.

Select New Entries Icon.

Enter name of plant and purchasing organization. Click on save. Purchasing organization is now assigned to plant.

Standard Purchasing Organization to Plant

Standard purchasing organization is the default purchasing organization. We can sometimes assign standard purchasing organization to some specific plant if we want to have default purchasing organization for that plant. Following steps will take you through the procedure of assigning standard purchasing organization to plant:

Path to assign standard purchasing organization to plant:

IMG => Enterprise Structure => Assignment => Materials Management => Assign Standard Purchasing Organization to Plant

TCode: SPRO

On display IMG screen select Assign standard purchasing organization to plant execute icon by following above path.

We can view existing assignment and also we can change accordingly. Click on save after making changes. Standard purchasing organization is now assigned to plant.

REF