SAP Functional Location Structure Template

Design principles behind a good structure

A functional location represents a place or function in the plant, not a physical machine. Equipment is installed at it and can be replaced without losing the history of the location. Keep the hierarchy shallow enough to navigate, typically three to six levels. Use codes that carry meaning to the people who read them but never encode data that changes, like a cost center or a person. If you need to report by something that changes, use a classification, a field on the master record or a partner, not the label.

• One structure indicator per distinct plant type unless the mask truly differs
• Do not put equipment serial numbers in the label
• Reserve code ranges for future lines or expansions
• Decide early whether the structure follows process, location or both

Common mistakes

Frequent errors are building the hierarchy to mirror the org chart, which changes every reorganization, and putting one equipment per functional location without considering that functional locations exist to carry history across replacements. Another is leaving cost center and planner group blank, which breaks reporting and routing later. Finally, mass loading before the structure is approved turns every later change into a data migration.

Frequently Asked Questions