From the course: Learning SAP Production Planning

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SAP Production Planning organizational structure

SAP Production Planning organizational structure - SAP ERP Tutorial

From the course: Learning SAP Production Planning

SAP Production Planning organizational structure

- [Instructor] Like all SAP Modules, production planning depends on a solid organizational structure. The organizational structure ensures that all legal requirements are satisfied. It's also the basis for reporting in SAP. So it's really important that this is thoughtfully configured when companies begin using the system. The production planning organizational structure has three crucial components. The first organizational unit we'll look at is adopted from the financial accounting module. And it's called Company code. Company code is an independent legal entity. Profit and loss statements, as well as balance sheets are maintained at the Company code level. Company codes link SAP financial accounting with the other modules. Next up we have Plants, a Plant handles planning, purchasing, production, and the distribution of goods to customers. Organizations have some flexibility on how they use Plants. And depending…

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