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author's profile photo Former Member
Former Member

Plant

Hi,

1. I am Importing the materials from one more place and selling here. Company does not manufacture materials at all. In that instance plant should be defined or storage location is sufficient? Here then what is the difference between plant and storage location in this instance?

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    author's profile photo Former Member
    Former Member
    Posted on Jun 15, 2007 at 07:16 AM

    Hi,

    You need to define plant in both locations. Materials needs to be valuated differently in differeent locations. also you need to capture frieght costs. storgae location does not have any impact on the valuation.

    Regards,

    Ramakrishna

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    • Former Member Former Member

      Hi,

      I'm also facing the same scenario, the manufacturing plant and the corresponding external warehouses are in different states. The straight forward way is to define the external warehouses (Imported Rawmaterials are stored in transit) as plants, but the client wants to consider the stocks in these warehouses as a part of their MRP run for production!!!!!!

      any inputs will be appreciated.

      thanks,

      ashok

  • author's profile photo Former Member
    Former Member
    Posted on Jun 15, 2007 at 07:33 AM

    Hi,

    In SAP terminology Plant <b>must not always</b> be a manufacturing unit. You can define plant or storage location as per the requirement.

    It is not that only manufacturing units are plants and others storage locations etc.

    Hope this will help.

    Regards,

    Naveen.

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    • Former Member

      Hi Naveen,

      Please don't take my comments personally, this is a site where people discuss and debate. We do not just post one sided replies. So we should be able disgree with some comments, it promotes a healthy debate.

      I was merely pointing out that we had already said that storage locations could be used, but we were recommending that they shoulld NOT be in this case.

      Your post did not seem to point out any of the negatives of either option, you merely said that either could be used. I did not disagree, nor did I assume that you recommended a storage location, it is just that by simply saying that either can be used, not only doesn't add any value but it also gave the wrong recommendation.

      I hope that you will agree with the following comment and so we can then show a united front?

      <b>"A storage location can be used in this situation (and often is, but in my own view, incorrectly) but the <u>strong</u> recommendation is to use a plant wherever stock is held in a separate site."</b>

      Would you agree with this statement?

      Steve B

  • author's profile photo Former Member
    Former Member
    Posted on Jun 15, 2007 at 07:18 AM

    Hi Rams

    It is a scenario where u have depo from which you sell material . and material in depo comes from a plant . so ur depo should be defined as a plant to capture material movement from depo to customer or some other place.

    if u keep this as a storage location then to which plant u r going to attach that storage loc.? because if plant is to far from your depo then it is not advisable to make depo as storage location but make it as a independent plant.

    regards

    Yogesh

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