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Former Member
May 16, 2010 at 02:37 AM

Plants Abroad

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I have the following scenario:

1 There is a company situated in US and have two plants in Mexico. These two plants in Mx do the assembling job for back to back exports. There is a small local sales component from these two components. Appreciate whether I can treat these two plants are Plants Abroad.

2 Another scenario is similar to the above. A company is situated in one of the EU, and they have plants located in other countries in EU and have different VAT #. For the Org Structure, Do I need to create this plants abroad or it will be sufficient to create these plants as 2 legal entities. I am a bit confused about the language use in SAP documentation which is reproduced below:

This procedure simplifies the process of making tax returns for companies with several plants or warehouses abroad. Note that these are not real operation centers abroad; you would have to create separate company codes for these.

You should only use this function if you have several warehouses, distribution centers, or plants abroad.

If however, you only have individual warehouses abroad for example, you should set up a separate company code for each warehouse. Otherwise the functions and scope of the Customizing settings for plants abroad would be too complicated for a single entity abroad.

Appreciate your inputs

BR