Organiz. Levels of an Enterprise in the SAP System 

Use

This section describes the organization of a typical enterprise in the SAP system. It also demonstrates how Purchasing is integrated into this structure.

In the SAP System, the organization of an enterprise comprises the following levels:

 

Client
The highest, or corporate group level of the organizational structure.

Example: Group of companies.

Company code
This level represents an independent accounting unit within a client.

Example: A subsidiary company, member of a corporate group.

Plant
A business location within a company code.

Example: Manufacturing plant, regional office, branch.

Purchasing organization
an organizational unit responsible for procuring materials and services for one or more plants and for negotiating general conditions of purchase with the vendor. Externally, the purchasing organization is legally responsible for all purchase transactions. It is therefore always assigned to a company code.

Purchasing group
The purchasing organization is further subdivided into purchasing groups (groups of buyers), which are responsible for day-to-day buying activities.

Organizational Level for Vendor Evaluation

The organizational level for Vendor Evaluation is the purchasing organization:

Each purchasing organization evaluates the vendors that have been assigned to it.

The system does not support a comparison of Vendor Evaluations at the higher company code level.

For further information, please refer to the MM Purchasing documentation.