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Former Member

Shifting of Plant to different State

Dear All,

In case of a Plant shifted from one state to another state, what should we do in SAP?

a. Shoud we change the address of the same plant & start using the same plant?

b. Should we create a new plant, upload/extend all the master data & use the new plant for all activities.

will there be any legal complication if we simply change the address & using the inventory without showing any transfer (stock out) from the old plant.

pls. advise,

Regards,

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2 Answers

  • Best Answer
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    Former Member
    Oct 19, 2008 at 07:10 AM

    You should create a new plant .. enter all excise vat cst details and enter new address also.

    Extend all material to new plant

    transfer all material physically to new plant with payement of excise and CST/VAT

    Block the old plant for all further postings .... dont delete it .... because u will have to deal with tax authorities for many more years. 😊

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    • Former Member Former Member

      Hi PK,

      Points to be taken care of:

      1. Does the new plant is in the same company code? If it is a diff comp code, u need to create new one.

      2. You should think from all modules perspective. If tansactional data exists for the plants, what to do with them.

      3. Talk to your FI guys and ask whether they want to see the accouts differently for the new plant. This is the key.

      4. If you change the name, it is not going to hurt. Your work will be more with sap scripts.

      5. If create a new plant, all the transactional data has to be cleaned up and masted data to be extended. But if your company wants to account the plant seperately, then go for a new plant.

      6.How should be the stock treated?

      Hopefully this wil help you..

      Regards,

      KSB

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    Former Member
    Oct 19, 2008 at 06:47 AM

    Dear,

    Since you are shifting the plant from one state to another state - I suggest to change name and address accordingly and use the same plant, instead to create new one.

    I think (but sure) in India the tax structures are different between state to state and easily can be incorporated in existing plant or not, what are the effects and how to handle. Please perform a simple study with concerned accounting, taxation, management employees in your organization and MM,FI and other consultants if necessary.

    In this case there is no question of create new plant and sudden disappear or disable operations of an existing plant.

    Regards,

    Syed Hussain.

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