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Plant Vs Storage Location

Hi All,

I have two storage areas suppose A and B. How can I decide or what is the criteria for deciding a location is Plant or Storage Location.

Thanks

John.

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5 Answers

  • Posted on Jul 24, 2008 at 03:14 AM

    Hi,

    In case if you take for example automobile industry. consider two jobs like Paint shop and assembly shop. these two are different functionalities and hence we can have them has two plants has the materials procured here are 99% different. hence we would like to have them has different plants.

    It also depends on the distance between one plant to another. in classifing the other location has a storage location or plant.

    It also it depends on the client who also decides if it should be a plant or a storage location.

    Storage location is nothing but storing of materials.

    Thanks & Regards,

    Kiran

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  • Posted on Jul 24, 2008 at 03:44 AM

    hi

    it is depend on ur company requirement

    also it is depends on the distance between two entities

    if they are far u can treat them as plant or if they are close then u can treate them as store

    i think let it decide by the company

    and also u have to look for tax part also

    regards

    kunal

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2008 at 03:51 AM

    Hi,

    Storage location is physically storing the materials.Here Material valuation is not carried out.

    Plant is a manufacturing unit and materials are also stored.Material valuation is carried out here.

    Regards

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2008 at 04:26 AM

    Dear John,

    It is organisational struture data.

    Normally it is decided by business in organisation set up.

    hence its node is in ECS.

    It is used for inventory reporting too.

    Ref below link

    http://help.sap.com/erp2005_ehp_03/helpdata/EN/ff/515ee849d811d182b80000e829fbfe/frameset.htm

    Ramesh

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 24, 2008 at 05:13 AM

    Hi,

    you are only saying its storage area.

    Well,It depends on the Company business Enterprise Structure assignment.

    Plant is org unit which can be used for manufacturing,stock storage, warehousing etc.

    Storage Location is a place where the stock is kept.

    The main difference is in plant the material is valuated on quantiy and value basis.

    In Storage location its only on quantity.

    Also, a storage location is always assigned to plant.reverse is not possible.

    You can check the assignment in EC01 the assignments.

    A material is always created for plant..

    (bcoz its valuation area)

    Hope you are clear....

    Any queries, revert.

    Regards,

    Smitha

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