One plant carried out both manufacruring and trading

[Former Member]

Dear Experts,

In one plant(0001) we do both manufacturing and trading. Is it the right process to do in one plant or do we need to split two plants one for manufacturing and other for trading and assign these to one company code.

If we maintain two plants then will it be required to define two sales organizations or in one sales org can we do both sales process for manufacturing and trading goods.

what is the best possible way to configure it? for reporting purpose

Regards

Jyoti

[Former Member · Accepted solution]

Jyothi,

You have already enquired this but still for your calrification, its better we maintain two plants one for Trading and another one for Manufacturing.

You define Business area Sales area wise or Plant/Division wise. You can generate Financial acoounting reports,P&L , Inventory accounting reports seperately.

It is better choice, clarity will be there

Regards

Sathya

[Lakshmipathi]

In one plant(0001) we do both manufacturing and trading.

I believe the client has sought permission from Central Excise authorities in doing so because normally, from Excise point of view, special permission is mandatory to do both the above activities.

Coming to your question, I feel it is better to have two plants under one sales organisation so that from system point of view, you can distinguish in generating MIS / sales reports

thanks

G. Lakshmipathi

[former_member839993]

Hi Jyoti Prakash K,

You can have one plant and one sales organisation for both these scenarios, instead for your requirement you can have two distribution channels viz-manufacturing and trading.

This will make your scenarios simple.

Also have two separate document types for both these scenarios.

regards,

US

Edited by: usasapsd usasapsd on Apr 9, 2009 1:37 PM

[jignesh_mehta3]

You have two options:

1. Create seperate Sales Organisations

2. Under a same Sales Organisation, create seperate Divisions.

Now based on your clients requirement you can select either of the above options.

In case the Sales process for Mfg & Trading is entirely different, then you should create seperate Sales Organizations.

Hope this helps...

Thanks,

Jignesh Mehta

[Former Member]

Dear Jignesh,

Thanks for the reply. My plan was to create two plants for each activity.and carried out sales cycle in one sales organization.For these two plants i will assign two different business area so that internal reporting will be transperent.Please guide me if i am wrong.

Regards

[Former Member]

Jyothi,

You are correct. What Jignesh and you have said is also correct. Transparency will be there but maintain another division. based on business area still we can generate reports.

Regards

Sathya

[jignesh_mehta3]

Dear Jyoti,

You thought is perfectly correct.

Even I would not suggest to create two Sales Organisations, unless both of them are seperate Legal entities.

Create a single Sales Organisation, Two Plants & two Business Areas is a correct option...

Hope this clears your doubt...

Thanks,

Jignesh Mehta

[Former Member]

Dear Sathya,

Sales Area what we are going to follow is like this

Sales Org: 0001, 0002

Distribution channel: Channel Partner, Dealer, Institution

Division: Will be based on brand( for eg Zen, Alto etc)

So as per your and jignesh suggestion it's not possible to craete two division for manufacturing and trading. And also Dealer can purchase both trading and manf goods,.

Regards

Edited by: JYOTI PRAKASH KUNNAR on Apr 9, 2009 5:41 PM

[Former Member]

Jyothi,

Myself and Jignesh asked you to maintain to seperate divisions, else how will you distinguish. we were adding help, even this process is correct but there seems to be some implications...

My original stance was to maintain two seperate plants. Laksmipathi has given his repsonse just check and proceed.

Regards

Sathya

[Former Member]

Dear Joyti,

Yes you do both actvities in single plant not required to maintain two plants for trading and manufacturing which will increse a HUge data in server

And about sales org it is not required to assign two defferent sales org for two palnt , from one sales org only you can do all transaction

Regards