MM Foundation, Enterprise Structure and Master Data

MM / P2Pbeginner

MM Foundation Part 1: From Company Code to Storage Location — Structure and Master Data Overview

Key takeaway

The foundation every procurement process needs: the organizational levels and the master data maintained at each of them — material master views, supplier (business partner) data, purchasing info records, source lists and conditions — and how they come together in a purchase order.

Explanation

📌 KEY POINTS
✅ Master data is maintained at organizational levels: client (basic data), plant (MRP, purchasing), storage location, company code (supplier accounting), purchasing org (supplier purchasing data).
✅ Material master, supplier (BP) and purchasing info record are the core of procurement.
✅ Source lists, contracts and conditions determine where and at what price you buy.
✅ A PO pulls defaults from all of them — missing data shows up as PO errors.
⚠️ Bad master data is the root cause of most procurement incidents.

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▶ WHAT THIS SERIES COVERS
Part 1: Structure and master data overview
Part 2: Master data quality: material, supplier, info record and source data
Detailed tracks: Enterprise Structure, Material Master, Supplier & BP, Source Determination.

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▶ 1. ORGANIZATIONAL LEVELS

Client, company code, plant, storage location, purchasing org, purchasing group.

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▶ 2. MATERIAL MASTER

Views: basic data, purchasing, MRP, accounting, storage.
Material type controls views and valuation.

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▶ 3. SUPPLIER (BUSINESS PARTNER)

General data, company code data (reconciliation account, payment terms), purchasing org data (currency, incoterms, GR-based IV).

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▶ 4. PURCHASING INFO RECORD

Supplier–material relationship per purchasing org/plant: price, delivery time, tolerances.

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▶ 5. SOURCES

Source list, contracts, scheduling agreements, quota arrangements.

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▶ STEP BY STEP

Display a material's purchasing and accounting views.
Display a supplier's purchasing org data.
Create a PO and see which fields come from which master data.

✅ CHECKPOINT: you can trace every PO default back to its master data source.

Code example

ABAP Code

===== STEP 1: master data per level =====Material: MM03 basic (client) | purchasing, MRP (plant) | accounting (valuation area)Supplier: BP role FLVN00 (general) / FLVN01 (purchasing org) | company code dataInfo record: ME13 (supplier + material + purchasing org + plant)Source list: ME03 | contracts: ME33K ===== STEP 2: PO defaults =====Price → info record/conditions | payment terms → supplier purchasing data | GR/IR control → supplier/info recordDelivery date → planned delivery time | account determination → valuation class

Real project scenario

After a new plant went live, buyers complained that every PO needed manual prices and suppliers. Materials had no purchasing views for the plant and info records existed only for the old purchasing org. Extending master data systematically before go-live of subsequent plants removed the manual work.

Common mistakes

Materials not extended to new plants.
Missing supplier purchasing org data.
No info records.
Ignoring source lists.
Fixing POs manually instead of master data.

Best practices

Extend master data with the structure.
Maintain info records for regular buys.
Use source lists where required.
Govern master data ownership.
Monitor PO manual overrides.

Interview angle

Questions: "Which master data does procurement need?", "At which level is supplier purchasing data maintained?", "What is an info record?"
Strong answer: org levels, material master views, BP supplier data levels, info records, sources; PO defaults trace to master data.

Practice this lesson

Quick check

1. Where is supplier-specific purchasing data such as order currency and GR-based invoice verification maintained?

2. What does a purchasing info record represent?

3. In an SAP Retail-enabled client, what is the significance of assigning a site (store or DC) to a merchandise category hierarchy, and how does this differ from a standard plant setup in classic MM? Choose the response that best aligns with the expected SAP approach.

Interview questions

1. A new plant went live and buyers complain that POs need manual prices, suppliers and delivery dates. How do you analyse it?

Answer it in your own words first, then compare.

2. In an SAP Retail-enabled client, what is the significance of assigning a site (store or DC) to a merchandise category hierarchy, and how does this differ from a standard plant setup in classic MM?