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What are the organizational levels of Stock Management in SAP?

There are four levels of organization in stock management. Each of the levels represents an organizational unit.

Principal

It is an independent unit both legally and organizationally. It is represented as its own master record and a set of separate tables.

Society

You can maintain a complete and independent accounting system. Monitors entries of all events that need to be recorded in the account and creates a complete record for the balance sheet and profit and loss account. A company represents an independent unit. Multiple company codes can be set up for the same client so that each company has its own set of accounts.

Center

Subdivide a company from different perspectives such as:

  • The production.
  • The supply.
  • The maintenance.
  • Demand planning.

Thus, a business structure is created by assigning organizational levels to multiple classifications. Therefore, while a client can contain several company codes and these can contain several plants, a plant can only belong to one company code.

Store

This organizational unit, through unique alphanumeric keys made up of four characters, allows the material stocks to be differentiated within a center.

Purchasing group and purchasing organization

On the one hand, the purchasing group aims to acquire the material or material category internally.

On the other hand, purchasing organizations are in charge and responsible for acquiring materials or services, negotiating the points thereof with suppliers.

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