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Help required on Organisation Structure

Former Member
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Dear All,

I wanted to prepare a Organisation Structure for one of our Client.

The Business process is like this , there is one Head office , 25 Branches & 50 Service centres .

The Head Office & Branches have similar function, i.e of booking the orders , checking the stock ( branches also stock the material ) ,if avialable than despatch, if the stock is not avilable than the stock is replenished from the main warehouse.

The service centre recieves complaints & defective goods under warranty from the customer , checks for availabilty of material , issues fresh material in place of defective material & sends it to the customer ,incase of material is not available than the requistion for the same is sent to the main warehouse & on reciept from warehouse the material given to the client.

In such scenario, how should I map my Organisation structure.

Secondly what factors decide whether a unit is to be treated as a plant or a storage location.

Thanks

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Answers (3)

Answers (3)

Former Member
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Dear Friends , Thanks for all the replies

former_member186154
Active Participant
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Hi,

To add to the Arminda's post:

You have mentioned that the 25 Branches also holds inventory. Then they should also be defined as Plant or Storage location. You would need 1 company code and 1 purchase org (if you can control the procurement for the 25 branches and the service centers centrally).

Assuming the valuation area is a Plant in your settings- If the Value of the inventory (unit price of the materials in stock) is same across all branches and service centers then you can safely create them as Storage locations. Also consider whether there is any materials planning/ forecasting involved seperately for these business units. If so then you might have to consider them as plants (you can still have them as Storage locations and activate MRP areas for MRP purpose). If the valuation varies between them then they should be required to be created as plants.

Regards,

Kathir

Edited by: Kathiravan Jegatheesan on Apr 14, 2010 3:54 PM

former_member193326
Active Contributor
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Hello,

My suggestion is to have

1 company code

25 purchasing organizations (or maybe less if you are able to put some of them together)

50 plants

but I would need to know much more about how the company works.

A purchasing organization is defined as:

A purchasing organization is an organizational unit within logistics subdividing an enterprise according to the requirements of Purchasing. It procures materials and services, negotiates conditions of purchase with vendors, and bears responsibility for such transactions.

The definition for plant:

An organizational unit serving to subdivide an enterprise according to production, procurement, maintenance, and materials planning aspects. It is a place where either materials are produced or goods and services provided.

The defnition for storage location is:

An organizational unit allowing the differentiation of material stocks within a plant. All data referring to a particular storage location is stored at storage location level. This applies mainly to storage location stocks.

So deciding if you create a plant with only one storage location assigned or with more than one, it depends if you need to divide your goods in different locations. if they are all grouped in the same location, you can decide to have only one storage location per plant.

For more information about this you can checl the online help:

http://help.sap.com/erp2005_ehp_04/helpdata/EN/dd/af9fec708b11d194da00a0c930e0da/frameset.htm

Best Regards,

Arminda Jack