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.
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