Enterprise Structure in SAP Production Planning (PP)

Enterprise Structure forms the hierarchy in which the various organizational units of an enterprise are arranged according to tasks and functions.

The Production Planning organizational structure is as follows in SAP:

  • Company Code
  • Plant
  • Storage Location

Company Code in SAP PP
Company code is used in order to define the organizational unit for which a complete self-contained set of accounts can be drawn for external reporting. This includes the entry of all transactions that must be posted and the creation of all items for legal individual financial statements, for example, the balance sheet and the profit and loss statement.

Plant in SAP PP
A plant is a place where either material is produced, or goods and services are provided. A plant can be subdivided according to production, procurement, maintenance, and materials planning aspects. Every Plant is assigned to a Company Code. This ensures that stocks and stock values can be managed separately in each company. Valuation of stocks takes place per plant. This means that valuation prices can differ from one plant to the others.

Storage Location in SAP PP
A storage location is an organizational unit facilitating differentiation between the various stocks of a material within a plant. Storage locations are created with reference to a plant.

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