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What is ERP?

ERP stands for Enterprise Resource Planning.

Enterprise Resource Planning systems integrate all data processes of an Oraganization into unified system.

The key feature of an ERP system is it uses a single or Unified database to store data for the various system modules.

Various Modules which comes under ERP are listed below:

i.Manufacturing
ii.Supply Chain
iii.Financials
iv.CRM
v.Human Resources
vi.Warehouse Management

What is SAP ?

SAP stands for Systems Applicatios and Products in Data Processing.

SAP AG has released SAP R/2 Version initially.The architecture of the R/2 system is Mainframe Architecture.

Later SAP R/3 is released which has different from R/2 architecture.

R stands for RealTime.
3 stands for 3 Tier Architecture.

There are over 120,000 installations at more than 30000 Companies.SAP Products are used over 15 millon People in more than 125 countries.

Maintain Plant

The valuation level that you choose affects


  • The G/L accounts in which material stocks are managed
  • The G/L accounts to which transactions are posted in Materials Management


Effect on the maintenance of material master records:


Depending on the valuation level chosen,


  • you maintain accounting data in the material master record for each plant or for each company code
  • you define a valuation price for the material in each plant or in each company code


Effect on G/L accounts:


If material stocks are valuated at company code level, all plant stocks of a material are managed in a joint stock account for each company code.


If material stocks are valuated at plant level, you can manage the material stocks for each plant in different accounts. For each plant, you can define a separate determination.


If several plants are to use account determination, you can group these plants in "Valuation and Account Assignment" Customizing.

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