Hello friends if you are looking for SAP MM Organizational Structure Interview Questions with Answers | SAP MM Organizational Structure Frequently Asked Interview Questions | SAP MM Organizational Structure Most Asked Interview Questions | SAP MM Organizational Structure Interview Questions for Experience Candidates then you will get those here.
Before going to this post must read the previous post for MM Interview Questions – Click Here to Read
Q40. What is the organizational structure in the MM module?
The organizational structure in the MM module is a hierarchy in which various
organizational units are arranged according to their tasks and functions. The different
organizational units that constitute the organizational structure of the company are as
follows:
Client – A self-contained unit in the SAP system with separate master records and its
own set of tables.
Company code – The smallest organizational unit. You can create an independent set of
accounts for this unit for the purpose of external reporting.
Plant – An organizational unit where materials are produced or goods and services are
provided. You can divide an enterprise into various plants according to production,
procurement, maintenance, and materials planning.
Storage location – An organizational unit where the goods produced in the plant are
stored.
Warehouse number – An alphanumeric key that represents a warehousing system, which
is made up of different organizational and technical storage areas.
Storage type – An area such as a goods receipt area, goods issue area, or picking area.
Also the physical or logical division of a complex warehouse.
Purchasing organization – An organizational unit that procures materials and services
and negotiates with vendors to purchase materials or goods.
Purchasing group – An alphanumeric key for a buyer or a group of buyers who are
involved in purchasing activities. The purchasing group is responsible for materials
procurement and dealing with vendors.
Q41. What are the levels of organizational units of Enterprise Structure in R/3?
The client is the highest level unit of the organizational units in Enterprise Structure in SAP
R/3. The client is followed by the company code, which represents a unit with its own
accounting, balance, and profit and loss (P&L). The next level of organizational units in
Enterprise Structure is the plant, which represents an operational unit of a company.
Q42. Define Client. What is its importance in SAP?
A client can be defined as a person, company, or organization that purchases goods from
another person, company, or organization. In terms of SAP, a client is defined as a unit that
has its own master records and a set of tables. The client is important in SAP because it
stores and maintains data about the organization where SAP is implemented.
Q43. How to create a client in MM module?
You can create a client in the MM module either by using the transaction code SCC4 or by
performing the following steps:
Select SAP Menu > Tools > Administration > Administration > Client Administration.
Double-click SCC4-Client Maintenance. The display view Clients: Overview screen
appears.
Select Display > Change. The information dialog box appears.
Click Continue. The change view Clients, Overview screen appears, where you can
create a new client.
Q44. Define company. How is it different from a client? What are the data in MM that are
maintained at the company code level?
A company is an organizational unit for which individual financial statements are drawn per
the relevant commercial laws. A company consists of one or more company codes. Within a
company, all company codes must use the same transactions in addition to the same fiscal
year breakdown; however, company code currencies can vary.
A company is different from a client because a client can be a company or an organization
that has multiple companies. For example, the owner of the entire SAP system is a client.
The system will have only one operational client, but the client may further have a group of
companies. The following data are held at the company code level:
Material number
Classification data
Multilingual description
Units of measure
Technical data
Q45. How to create a company code in SAP?
In SAP, a company code is created using the transaction OX02. The company code field is
represented by a four-character alphanumeric string. You can create a company code in
SAP by performing the following steps:
Open the SAP Customizing Implementation guide.
Select Enterprise Structure > Definition > Financial Accounting > Edit, Copy, Delete,
Check Company Code. The Choose Activity dialog box appears.
Double-click Edit Company Code Data. The change view Company Code: Overview
screen appears where you can create a company code.
Q46. How many charts of accounts can be assigned in a company?
Yes. One chart of accounts can be assigned to several Company Codes. However, the
reverse is not possible; i.e., You will not be able assign more than one chart of accounts to a
single Company Code.
Q47. How many company codes can be assigned in one chart of accounts?
You can assign many company codes to a chart of accounts.
Q48. How many company codes can be assigned to a company?
You can assign only one company code to a plant.
Q49. What is a plant in MM?
A plant is an organizational unit where materials are produced or goods and services are
provided. In SAP, a plant is represented by a unique four-digit alphanumeric number. A plant
is allocated to one company code, and a company can have many plants. In the
organizational unit, a plant can be at one of the following locations:
Corporate Headquarters
Central delivery warehouse
Manufacturing Facility
Regional sales office
Q50. How is a plant defined in MM?
You can define a plant in the MM by performing the following steps:
Select IMG > Enterprise Structure > Definition > Logistic-General > define, Copy, Delete,
Check Plant.
Click Execute. The Choose Activity dialog box appears.
Select Define Plant to create a plant. The change view Plants: Overview screen appears.
Click New Entries. The New Entries, Details of Added Entries screen appears.
Specify the plant code in the plant field.
Click the address icon to display the Edit Address field.
Specify the required values in the fields, such as Title, Name, and Search Term 1/2.
Click OK. The New Entries, Details of Added Entries screen appears again.
Click the Save icon to save the newly defined plant.
Q51. What are the prerequisites for creating a plant?
There are three prerequisites that are required in order to create a plant. They are as follows:
Company calendar – Comprised of work days, public holidays, and company holidays.
Every SAP system is provided with a company calendar that can be modified per the
schedule of the company.
Country key – Helps in defining a plant.
Region key – Refers to a state or province that is associated with the country. It is
required along with the country key.
Q52. How many company codes can be assigned to a plant?
You can assign only one company code to a plant.
Q53. Can a company code be assigned to many plants?
You can assign many plants to one company code.
Q54. What is the menu path to assign a plant to a company code?
You can assign a company code to a plant by navigating the following menu path:
SAP Menu > Tools > Customizing > IMG > Execute Project > Display IMG (SAP reference
IMG) > Enterprise Structure > Assignment > Logistics-General > Assign Company Code to
Plant.
Q55. Define Storage location in SAP.
A storage location is defined by performing the following steps:
Select Tools > Customizing > SAP Reference IMG > Edit Project.
Select Enterprise Structure > Definition > Materials Management > Maintain Storage.
Click the clock icon. The Determine Work Area: Entry dialog box appears.
Specify the value (P001) for the plant in the dialog box.
Click the checkmark icon. The change view Storage Locations, Overview screen
appears.
Click New Entries. The New Entries, Details of Added Entries screen appears.
Specify the value of the storage location and description fields.
Click the Save icon to save the storage location.
Click the Exit icon to create the storage location.
Q56. How is a storage location assigned to a plant?
You can assign a storage location to a plant either by using the transaction code OX09 or by
performing the following steps:
Open the SAP Customizing Implementation guide.
Select Enterprise Structure > Definition > Materials Management > Maintain Storage
Location. The view cluster Maintenance: Initial Screen window appears with the
Determine Work Area: Entry dialog box opened.
In the Determine Work Area, Entry dialog box, enter a plant number and click continue. The
change view storage Locations: An overview screen appears where you can assign a
storage location to the plant.
Q57. Can storage locations be created automatically? How can they be created automatically?
Storage locations can be created automatically when an inward goods movement for a
material is performed. In order to create a storage location automatically, open the SAP
Implementation guide and click Materials Management > Inventory Management and
Physical Inventory > Goods Receipt > Create Storage Location Automatically.
3 thoughts on “SAP MM Organizational Structure Interview Questions”