Sunday, October 5, 2008

Organizational Structures in Material Management

To monitor the stock of material it is necessary to be able to store in the system the locations at which materials are kept. You can do this using the terms plant and storage location. A plant can either be a place of production or a single storage location, or a combination of closely situated storage locations where stock is kept.

Every plant is assigned to a company code. This ensures that stocks and stock values can be managed separately in each company.

The following figure illustrates how the client is subdivided in plants and storage locations.

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