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Former Member

Differance Between Plants..

What is the main differance between Manufacturing Plant & Supplying Plant ?

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 31, 2008 at 10:04 AM

    hello, friend.

    a supplying plant (or a delivering plant) can be a mere distribution center. materials just come in and go out.

    in a manufacturing plant, you activate production planning and do MRP settings, among other things. from a materials management point-of-view, you also have to update more material types in a manufacturing plant (FERT, HAWA, KMAT, ROH, VERP, etc.) than in a delivering plant (usually just FERT and HAWA).

    regards.

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 31, 2008 at 10:05 AM

    Hi,

    A manufacturing plant is location where manufacturing activities take place. A manufactuing plant can be supplying plant. In sap, we can treat a location as suppying plant even though there is no manu. activity.

    Thanks,

    Pramod

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 31, 2008 at 10:09 AM

    both are same, but for naming conventione they are used

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  • Posted on Jan 31, 2008 at 10:17 AM

    Dear Parmar

    The slight difference in supplying plant is that manufacturing activities may not takes place. They just procure some components, process and sell, whereas, in manufacturing plant, they themselves manufacture, process and sell.

    Thanks

    G. Lakshmipathi

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  • author's profile photo Former Member
    Former Member
    Posted on Jan 31, 2008 at 10:19 AM

    You may sell finished goods directly from the place of manufacture(manuf plant), or you may first ship them to a separate location for storage (a depot), from where you will sell them.

    Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.

    Sometimes when you make a final sale of goods from a depot, price escalations could have happened with retrospective effect.

    In such scenarios you need to pay the extra excise duty at the factory using an A Certificate.

    You need to register the A certificate details in the RG 23D register and the excise recovered from the customer.

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