SAP PP - Organization Structure

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Posted 2017-12-26 19:51:56

SAP PP module, the organization structure defines the location of manufacturing plants and storage locations within the plant. At the top of the structure, you have the company and the company code and then each company code contains different plant and storag locations.

Following diagram represents a common organization structure in live SAP Production Planning environment.

All the planning activities are performed at the plant level.

Production master data in Production Planning is created at the plant level.

Production confirmation process and the movement of goods occur at the plant and storage level.

SAP Organization Structure



To perform Production Planning and Control activities, SAP PP is closely integrated with other SAP ERP modules: SAP Sales and Distribution (SD), SAP Material Management (MM), Quality Management, Finance Accounting, and Project System.

You can find a list of the following activities from Production Planning that are related to other SAP modules and integration with other modules.


  • This involves movement of goods, auto goods receipt.

  • It includes creating a reservation for Production Order/Planning.

  • Raising purchase orders with MRP Run.

  • Quotations and Vendor selection.


  • This is used to check the availability of material for production order.

  • To perform MRP Run, Requirement Types.

  • Bill of Material components and operation.


  • Updating price in material master data.

  • Defining activity type in the cost center.

  • Assigning activity type to work center.

  • Cost Estimation.

  • Production cost controlling

  • Posting accounting activities related to goods movement, material request, etc.

SAP PP and Project System

  • Assigning planning activities to WBS in the Project.

  • Running Material requirement planning at Project level (MD51). The procured material attached to WBS are reserved as project stock against the particular project.

  • The component attached to the network are planned at the plant level and are reserved as plant stock.

SAP PP and Quality Management

  • Inspection Type 03 for discrete and repetitive manufacturing.

  • Inspection Type 04 for both discrete and repetitive manufacturing.

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