Enterprise Structure in Material Management

The following sections describes and details the various organizational entities in SAP system to perform Organization related various MM module related processes indicated in earlier sections.

 Plants

The Plant is an operating area or branch within a company where there is stock movement and services are provided. In the case of Al-Nukaly, all the Branches will be identified as plants in SAP. The list of plants identified under the company code Al-Nukaly is as given below: 

A logical standardised (across modules) naming convention will be followed in order to identify the branch and in the subsequent section for the storage locations.

Dependencies

Material will have to be extended to all the plants where used.

• Materials would be valuated at each plant level.

• The Inventory valuation of a material can be different for different plants.

• Purchasing, MRP, Accounting information of a material will be plant specific.

Storage Locations

A storage location is the place where stock is physically kept within a plant. A storage location has the following attributes:

• There may be one or more storage locations within a plant.
•   It is possible to store specific material to  specific storage location. Every material can be stored in one or more storage locations within a plant.
• Stocks are managed only on a quantity basis and not on a value basis at storage location level.
• Physical inventories are carried out at storage location level.
• For the purpose of stock management efficiently the concept of Warehouse management emerged with sufficient storage bins under each storage locations. Such as below illustration
• Ø  A-A01 TO A-C021
•               TO
• Ø  J-A01  TO J-C021