SAP MM - Organizational Units

Plant:

A Plant is a logistics organization level where procurement, production and materials planning, Inspection and testing are performed. Any of these locations may be termed a plant. Plants are assigned to a company code.

Storage Location

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 stocks in storage location. The physical inventory is done at the storage location level.

Purchase Organization

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

Purchasing groups

Purchasing group is a buyer or a group of buyers’ responsible for certain purchasing activities.