Organizational Levels

In the SAP R/3 system, organizational levels are structures that represent the organizational view of a company. There are 5 organizational levels in SAP R/3:


                 

• Client
• The client is a commercial, organizational unit within the R/3 System, with its own data, master records, and set of tables. 
• From a business perspective, the client forms a corporate group
• Company Code
• The company code is the smallest organizational unit for which you can have an independent Accounting department within external Accounting.
• A company code represents an independent accounting unit, for example, a company within a corporate group (client). 
• Plant
• A plant is an organizational logistics unit that structures the enterprise from the perspective of production, procurement, plant maintenance, and materials planning.
• A plant is a manufacturing facility or branch within a company. 
• Storage Location
• The storage location is an organizational unit that allows the differentiation of material stocks within a plant.
• Inventory Management on a quantity basis is carried out at storage location level in the plant.
• Physical inventory is carried out at storage location level.
• Purchasing Organization/Purchasing Group
• A purchasing organization is an organizational level that negotiates conditions of purchase with vendors for one or more plants. It is legally responsible for completing purchasing contracts.
• A purchasing group is the key for a buyer or group of buyers responsible for certain purchasing activities.