# How to Create a Plant in SAP MM and Configure the Organizational Structure

> Source: https://netray.co/erp-help/sap-mm-create-plant-organizational-structure-config-how-to
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: ERP Help

## Short answer

Create a plant in the IMG under Enterprise Structure > Definition > Logistics - General > Define, copy, delete, check plant (OX10), then add storage locations (OX09), a purchasing organization, and assign the plant to a company code (OX18) and to a purchasing organization (OX17). The MM organizational structure is client > company code > plant > storage location, with purchasing organization and group on the procurement side.

## Kind

how-to

## System

sap

## Erp

SAP ECC / S/4HANA

## Module

Enterprise Structure / MM Customizing

## Query

how to create plant in sap mm

## Alternate Queries

- sap mm organizational structure configuration
- what is sap mm organization structure
- OX10 define plant
- assign plant to company code OX18

## Applies To

SAP ECC 6.0 and S/4HANA on-premise; transaction codes can differ in S/4HANA Cloud

## Steps

### How to create and wire up a plant

**Items:**

- Run OX10 (or IMG Enterprise Structure > Definition > Logistics - General > Define, copy, delete, check plant). Prefer 'Copy' from an existing plant, since it carries over settings.
- Enter the 4-character plant key, name, address, country, region, language and factory calendar in the plant details.
- Define storage locations with OX09 (Maintain Storage Location), each belonging to one plant.
- Define the purchasing organization (IMG Enterprise Structure > Definition > Materials Management > Maintain purchasing organization; OX08/OX01 depending on release) if you do not already have one.
- Assign the plant to a company code with OX18, and assign the purchasing organization to the plant with OX17. Assign the purchasing org to a company code (OX15) when it is company-code specific.
- Check valuation: confirm the plant's valuation level (usually plant) and that account determination exists for its valuation areas in OBYC.
- Extend master data: users can then extend material views to the new plant with MM01, and vendors with purchasing org data.

## Sections

### The MM organizational structure

**Body:**

The structure that matters in MM has two sides. The legal and accounting side is client > company code > plant > storage location; the plant is the main level for planning, valuation and stock, and the storage location is a physical stock separation inside it.

The procurement side is purchasing organization and purchasing group. A purchasing organization buys for one or more plants or for a company code, depending on whether it is plant-specific, company-code specific or cross-company-code. The purchasing group is a buyer or buyer team and is not tied to a plant.

Plant is also the key for MRP, production scheduling, and shipping or delivery points, so a complete plant needs settings from several modules, not just MM.

### What a new plant also needs

**Body:**

A new plant is not usable until it has the basics: assignment to a company code, a purchasing organization, a valuation area setup with account determination, and a number range for material documents if your setup separates them by plant.

For production, add MRP and production settings such as MRP controller and production scheduler (set through the IMG paths for your release), and for sales a shipping point, loading group and the plant assignment in the sales area.

For intercompany or inter-plant flows, maintain the vendor number and customer number of the plant in the plant's details so stock transport orders can find them.

### Copy versus create

**Body:**

OX10 offers Copy, with the option to copy dependent entries such as the storage locations and settings from a reference plant. Use it when the new site behaves like an existing one. Starting from scratch is more flexible but you will probably miss settings in other modules, because plant data is spread across many tables.

Deleting a plant is possible only before it has transaction data. Check that nothing references it before you try, which can be a long job in a live system.

## Pitfalls

- Creating the plant but forgetting OX18, so the plant has no company code and valuation cannot be derived.
- Missing account determination for the new valuation area, which breaks the first goods movement.
- Not assigning a purchasing organization, so buyers cannot create POs for the plant.
- Skipping the factory calendar, which affects MRP dates.
- Customizing in production directly instead of through a transport.

## Ai Angle

Consultants frequently need to compare how an existing plant is set up before copying it. Netray's ERPray can run this kind of lookup in plain language against your own SAP system, read-only by default, showing the query it ran and respecting SAP authorizations, with the model served on your own hardware when the system is on-prem. It explains and finds the data; it does not replace configuration decisions or post documents without human approval.

## Faq

### Which transaction creates a plant in SAP MM?

**Answer:** OX10 is the usual transaction for defining, copying, deleting and checking a plant. The same function is available through the IMG under Enterprise Structure > Definition > Logistics - General.

### What is a storage location in SAP MM?

**Answer:** A storage location is a physical or logical place within a plant where stock is kept. Stock is managed per storage location, but valuation is typically at plant level, and a storage location cannot exist without a plant.

### Can one purchasing organization serve several plants?

**Answer:** Yes. A purchasing organization can be assigned to several plants through OX17. It can also be assigned to a company code, or in a cross-company-code set up, to several company codes.

### Do I need a transport to create a plant?

**Answer:** Yes, in a normal landscape. These are customizing changes, so create them in the development client under a customizing request and transport them to test and production.

## Search terms

how to create plant in sap mm, sap mm organizational structure, OX10 define plant, OX18 assign plant to company code, sap storage location OX09, OX17 purchasing organization plant, sap enterprise structure mm, sap plant configuration

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