Demystifying the Enterprise Structure in SAP PP

SAP Production Planning (PP) is a powerful tool for managing your manufacturing processes. But before you dive into creating production orders and planning materials, it’s crucial to understand the foundation: the enterprise structure.

This blog post will explain the critical elements of the enterprise structure in SAP PP and how they impact your production planning activities.

What is the Enterprise Structure?

Think of the enterprise structure as a digital map of your manufacturing organization. It defines how your company is divided into legal entities (company code), production locations (plants), and storage areas (storage locations). This structure forms the basis for all your production planning activities in SAP PP.

Here’s a breakdown of the key players:

• Client: The highest level representing your entire company or group.
• Company Code: A unit corresponding to a legally independent entity within your company.
• Plant: The physical location where your production happens. You’ll create production orders, manage materials, and track capacity here.
• Storage Location: Specific areas within a plant for storing raw materials, finished goods, and work-in-progress inventory.

Important Note: While SAP PP leverages the enterprise structure defined in modules like Materials Management (MM) and Finance (FI), it has one unique element: the MRP Area.

MRP Area: The Heart of PP Planning

The MRP Area is a planning unit specific to SAP PP. It determines the scope for various activities like material requirements planning (MRP) runs. There are three main types of MRP areas:

• Plant MRP Area: The most common type, where the MRP area coincides with the physical plant.
• Storage Location MRP Area: Used for specific storage locations with independent planning needs.
• Subcontractor MRP Area: Designed for subcontracting scenarios where production happens externally.

How Does the Structure Impact You?

The enterprise structure plays a crucial role in various PP functionalities:

• Master Data Creation: Production data like bills of materials (BOMs) and work centers are created at the plant level.
• Production Planning: MRP runs, capacity planning, and scheduling activities are all executed based on the MRP area definition.
• Material Management: Material movements (goods receipts and issues) are tracked within the plant and storage locations.

Conclusion

A well-defined enterprise structure is the backbone of efficient production planning in SAP PP. By understanding the different elements and their functionalities, you can optimize your planning processes, ensure data accuracy, and ultimately streamline manufacturing operations.

Ready to delve deeper? Explore SAP documentation or consult an experienced SAP consultant to tailor your enterprise structure to your production needs.