Functional Location in SAP PM

Functional Location in SAP PM

I am writing this blog post to explain all important fields in functional location in sap pm screen. I have also given consulting tips and examples to help readers to understand the concept and prepare well for interviews.


Functional Location in SAP PM is an organizational unit in Logistics that structures the maintenance objects of a company according to functional, process-oriented, or spatial criteria.

A functional location represents the place at which a maintenance task is performed and all machinery is physically installed.

  • Consulting Tip: It is always recommended to have functional location to be defined in such a way that entire technical system is divided into different levels and user can track, evaluate maintenance history and maintenance cost periodically in various reports.

How to create Functional Location in SAP PM

Entries in Functional Location Master are similar with Equipment Master.

  • Step 1: Run t code IL01 to create a Functional Location, or go to Logistics > Plant Maintenance > Management of Technical Objects > Functional Location > IL01-Create
  • Step 2: Create Functional Location – Initial Screen will appear. Here you can select the relevant Functional Location category. Generally we use ‘M-Technical System – Standard’ category. Functional Location Category is configurable in SPRO.
    • Also Select the Structure Indicator. Structure indicator defines the syntax or format of functional location. Once it is selected, edit mask automatically copied on the screen.
    • Then you can enter the label of functional location like 01-04-A001-MP1401A.
    • Structure indicator can be configured in SPRO. Structure indicator will be discussed in detail in coming time.
  • Step 3: Press enter and go to Functional Location master data main screen.
  • Step 4: Enter the short text (not more than 40 characters). There is option of entering long text also.
  • Step 5: In standard SAP there will be four tabs- General, Location, Organization and Structure. You may add more tabs as per client’s requirement. Complete layout of Functional Location Master Data can be configured in SPRO.
  • Step 6: Click on General Data Tab. General Data tab is divided into three parts General Data, Reference Data and Manufacturing Data.
  • Step 6a: The first filed is Class. This field is grey out (Display mode). To bring the class, click on the Class Overview button. Now select the Class type 003 for Functional Locations. Afterwards enter the class. This class name is very important because it allows you to classify your technical objects into various classes in such a manner that you can maintain their specifications.
  • Consulting Tip: We have Standard SAP Reports related to Class, MCI1-Object Class. Therefore it is recommended to maintain this entry.
  • Step 7: Here we should enter object type. Object type is a division of technical object for precise description. For example: If Functional Location Category is “M’, then you may select object type as Motor, Pump, Turbine etc.
    • This field can be configured in SPRO.
  • Step 8: Enter Authorization Group. Authorization Group is used when you want to give access to certain users to process data. Users who have the Authorization group in their role will be able to access and process that Functional Location.
  • Consulting Tip: Always recommend to use Authorization Group, if Client wants that Electrical Department users should not be able to see Mechanical Functional Location and vice-versa. In such cases create Authorization ELE and MEC and give authorization to respective user.
    • Authorization Group can be configured in SPRO.
  • Step 9: You can enter Weight, Size, Dimensions, inventory no. and start-up date also.
  • Step 10: In Reference Data you may enter the Acquisition value (with currency) and Acquisition date.
  • Consulting Tip: This field is important because in future you can compare the maintenance cost and acquisition value on real-time basis. If Maintenance cost exceeds the Acquisition Value, then you may choose to scrap out the Functional Location.
  • Step 11: Then enter the Manufacturer Name and other details. For example: ABB, L&T, SIEMENS, SAMSUNG etc. This is Text field.
  • Consulting Tip: This field is very important, because there is an SAP Standard Report MCI2 based on Manufacturer.
  • Step 12: Click on Location tab.
  • Step 13: Enter the Maintenance Plant. Select the Maintenance Plant where Functional Location is physically installed.
  • Step 14: Enter Location. Location can be Production Area, Warehouse, Admin etc. Location is configured in SPRO.
  • Consulting Tip: This field is very important, because there is an SAP Standard Report MCI3 based on Location.
  • Step 15: Next field is Room. This field can be used for information purpose. It indicates a specific room for asset or machinery. It is generally used in Real Estate Industry. It is a text field.
  • Step 16: Enter Plant Section. Plant Section indicates the production area in maintenance plant. We can also include the name and contact no. of Production In-charge of respective plant section. It is configurable in SPRO.
  • Consulting Tip: This field is very important, because there is an SAP Standard Report MCI3 based on Plant Section.
  • Step 17: Enter the Work Center from the drop down. This work centre is actually PP Work Centre linked to the maintenance Functional Location. Production department uses the Functional Locations to produce goods. However, maintenance department does maintenance activities on the same Functional Location. Now, in order to avoid the clashes between the production activity and maintenance activity, it is needed to link the PP work centre and maintenance Functional Location. This will allow the Production in-charge to see which Functional Location will be under maintenance in future. Thus, he/ she will not plan production with that Functional Location. Production in-charge can see the scheduled maintenance activities in the Planning board.
  • Integration: Assigning PP Work Centre in the Functional Location Master is an integration of PM and PP Module.
  • Step 18: Enter ABC Indicator. ABC indicator can be used to define the criticality of technical objects. For example: A – Very Critical, B- Medium Critical, C-Non-critical. This field is configurable in SPRO.
  • Consulting Tip: ABC indicator must be entered with Functional Location. Whenever, we execute any maintenance activity in SAP. ABC indicator automatically copied to the notification or maintenance order. Therefore it is available in all the maintenance order and notification reports. We can use them for further analysis. For example: In IW38 report, we can see how many Functional Locations with indicator A are under maintenance i.e. how many critical Functional Location are under maintenance? This can also help in const control and cost reduction.
  • Step 19: Enter sort field. Sort field is a simple text field, which can be used for tracking of Functional Location.
  • Step 20: Click on Organization tab. Organization tab is divided into two parts, Account Assignment and Responsibilities. Account assignment contains the company code, asset no., cost center etc. Responsibilities contains Planning Plant, Planner Group, main work center and catalog profile
  • Step 21: Enter Company Code. If you have entered the Maintenance Plant in Location tab, then company code of that plant will automatically appear here. However, if there is no entry there, then we will have to enter the company code manually from drop down list.
  • Integration: This is integration with Finance Module.
  • Step 22: Enter Cost Center. Cost Center is SAP CO Master Data. It is created by controlling department. This entry is important because cost center entered here is automatically copied to the respective maintenance notification and maintenance order. Cost center the organization element where entire cost of maintenance is settled.
  • Integration: This I is an integration of SAP PM Module with SAP CO Module.
  • Step 23: Enter Planning Plant. Planning Plant is the plant where entire planning of maintenance activities carried out. Based on organization structure business people can easily decide the respective planning plant for the Functional Location. This entry is important because when production in-charge creates any notification with reference to Functional Location, then planning plant will automatically copied to it. This will help in tracking and filtering of notification in reports. Planning plant can be configured in SPRO.
  • Consulting Tips: This field is important and must be entered because there are many reports based on planning plant. For ex: IW28, IW29, IW38, IW39, IW65, IW69 etc.
  • Step 24: Enter Planner Group. Planner Group is the group of persons who are responsible for planning of maintenance activities. It is configured in SPRO. Planner Group is created with respect to planning plant.

When you create a notification or maintenance order with reference to Functional Location, planner group is automatically copied to it in the responsibility sub-screen. This helps in tracking and reporting on planner group basis.

  • Consulting Tip: Generally Planner Groups are created like ELE – Electrical, MEC – Mechanical, INS – Instrumentation, CVL – Civil etc. It can also be created as 100, 200, and 300 up to 999. It should always be recommended to have a scope of expansion while creating planner groups.

We must enter the planner group in Functional Location master because we have SAP Standard Report MCI4 based on planner group.

  • Step 25: Enter Main Work Center. Main Work Centre is the group of persons or machines responsible to execute the maintenance task in the field or plant area. It is a generally created like ELEC0001, MECH0001, MECHWRK etc. When you create a notification or maintenance order with reference to Functional Location, main work center is automatically copied to it in the responsibility sub-screen. This helps in tracking and reporting on main work centre basis. We can see how many maintenance jobs are pending on a particular main work center.
  • Step 26: Enter Catalog Profile. Catalog Profile contains the catalog, catalog groups, catalog codes and code texts. A Functional Location specific catalog profile will have catalog codes related to that Functional Location. When we create a maintenance notification, Functional Location specific catalog profile will be available to for maintaining the technical history in notification. If there is a catalog profile for notification then Functional Location specific catalog profile will override notification specific catalog profile.
  • Step 27: Click on Structure Tab.
  • Step 28: Unlike Equipment, Functional Location automatically fetch its superior functional location.
  • Step 29: Now Superior Functional Location will have values.
  • Step 30: Enter Technical ID no. Here system gives an option to maintain the technical id no. of technical object as per the engineering drawing or any other number. This is a simple text field.
  • Step 31: Next field is Construction Type. Construction type is a very important field. Here you can maintain the material bill of material. This material bill of material will have all the materials which are commonly used during maintenance like cotton waste, lubricant, silica gel, brush etc. Now at the time of maintenance you can open this list in the maintenance order in the component tab. There is a button with a flower on it at the bottom of component tab with name “List”.

All the entries are completed. Now you can SAVE your Functional Location. Once you save your Functional Location, it will be saved with its Label. You can see the entire Functional Location Structure in IH01 – Structure Display T Code.

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