In SAP PP module, the organization structure defines the location of manufacturing plants and storage locations within the plant. At the top of the structure, you have the company and the company code and then each company code contains different plant and storag locations.
Following diagram represents a common organization structure in live SAP Production Planning environment.
All the planning activities are performed at the plant level.
Production master data in Production Planning is created at the plant level.
Production confirmation process and the movement of goods occur at the plant and storage level.