Day 2 — SAP MM Organizational Structure

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Interview Question

What are the Organizational Units used in SAP MM?

Answer

• Organizational Structure defines how a company is represented in SAP. • Important units in MM are Client, Company Code, Plant, Storage Location, and Purchasing Organization. • These units help manage procurement and inventory activities efficiently.

Real-Time Example

• A company has offices in Hyderabad and Bengaluru with separate plants. • Both plants purchase materials through their respective Purchasing Organizations. • Stock is maintained separately in different Storage Locations within each plant.

Practice Questions

1. What is an Organizational Structure in SAP MM? 2. What is the purpose of a Plant? 3. What is a Storage Location? 4. What is a Purchasing Organization?

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