Configuration Query

[Former Member]

Hello Experts,

I have following qery.

A manufacturing plant procures a raw material ( say xyz) . The Material is stored in the storage location which is inside the plant as well as in a Cold Storage which is far away from the Plant. The Material has some losses after a certain period ( Storage loss) . The cold storage is hired on rent for some period and it is not fixed for that plant. (one cold storage can be closed and another can be hired.) Whenever there is a production requirement the material will be brought to the factory by arranging the vehicle, hence the frieght cost is involved.

So the qery is whether the Cold storage will be configured as seperate Plant or as Storage location for maufacturing plant in the system considering the material valuation and the implications of it in FI & CO point of view.

Please Guide

Thanks & Regards

Sandeep

[Former Member]

Hi,

Better you can create logical Plant and stored the material their

And carry out the STO from cold storage plant to manufacturing plant in this way can capture the freight involved in transferring from cold storage plant to manufacturing plant.

And also the advantage is monitoring of stock in respective plant.

Or even you can create storage location as clod storage in the plant and do STO between storage location involving Freight charges. Provided maintain Freight condition in STO Pricing procedure and Activate Stock Transfer Between Storage Locations in customization.

Rgs

[Former Member]

Hi Sudhir & Pavan,

Thanks for your reply. It really Helps.

Best Regards,

Sandeep

[Former Member]

Hi Sandeep,

As the material characteristic is changing in the Cold storage, its valuation will also change. Try to make use of Split valuation to capture the change in value of the material.

But to have this created as Plant and storage location depends on other factors like, do you want to carry out valuation of this Cold storage [then it should be a Plant]. If it is needed only for physical count and goods movements, check for the option of Storage location.

Regards,

Pavan