Org Structure for a Service Industry

[Former Member]

Hi All,

We are discussing the Org Structure for a Service Industry (BPO). The Project is basically u201CProject Systemsu201D driven.

We are having one Head Office in Delhi & two Branch Offices in Mumbai & Ranchi.

We do procurement of the following:

Hardware, Software, Office Consumable, Services like AMC for Printers, PC Hiring, EPBX Systems & Maintenance etc.

The decision of procurement is done by the Central Procurement Team here in Delhi where as the respective Materials (service & asset) are received at the respective locations Mumbai & Ranchi.

We are going to create Purchase Orders for Services & Assets. Consumable Purchase will be handled directly by FI.

We will be creating the followings:

Company Code: 1000

Purchasing Organization: 1000

Plant u2013 1000 (Delhi Office)

Purchasing Group: 100 u2013 Delhi Office, 101 u2013 Mumbai Office, 102 u2013 Ranchi Office

Storage Location: NONE

Since there is no Material (like raw materials, packaging) involved, we are not planning to create Storage Location.

We are treating the Delhi Office as a Plant. We will not treat Mumbai & Ranchi Office as Plants. We will track the Purchase for Mumbai/ Ranchi based on the Purchasing Group.

Pls. note that we are going to use Business Area.

Should I go with above MM Org Structure (with no Storage Location)?

(Note: I have posted the same Query earlier also)

Regards,

P K Karn

[Former Member · Accepted solution]

Hi,

you told that you are procuring the following and where you are going to store these with out storage location.

Hardware, Software, Office Consumable, Services like AMC for Printers, PC Hiring, EPBX Systems & Maintenance etc

.

you can maintain organisational structure with out storage location . But it is requied to store any type of materials.

From ECC 6.0 new concept "Profit center" included instead of "Business area" to avoid probems with business area. Look at this also , discuss wih FICO guyes.

If you are not using raw materials and packing materials, then no problem, select suitable material type.

and also check weather you need quantity update and value update.

It is client requirement weather the purchasing is maintained by MM department or FI department or purchase department.