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Former Member

Why Assign Organizational Units By Plant in Inter company Sales

Hi Friends,

In Inter company Sales why we assign Sales area to Delivering Plant?

1. What is the use of it in technical point of view?

2. If not then what will happen.

Kindly Regards

Arun

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  • Best Answer
    Posted on Nov 10, 2011 at 09:19 PM

    Read OSS Note 308989 - Consulting note for cross-company transactions to understand delivery related intercompany process.

    For your second question, if you don't assign the plant, which is delivery plant in sales order, then you can't deliver from that plant.

    Regards,

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  • author's profile photo Former Member
    Former Member
    Posted on Nov 11, 2011 at 10:34 AM

    Hi,

    for these questions,

    1. What is the use of it in technical point of view?

    Here we assign from which plant under which sale area we process intercompany process,here plant belongs to the delivering company code and sales area belongs to Ordering company code.

    While we select delivering plant in sale order line item,system has to understand based on this assignment,eventhough we maintaine in enterprise structure,system will read from both assignment.

    2. If not then what will happen.

    If not system will not allow you to create delivery or intercompany invoice.

    Thank you,

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    • Former Member Former Member

      By assign, we mean in SAP configuration what is the sales route authorized by the company. This is a very important step of a company's set-up.

      In most situation, Plant may be the same as Company code or Sales Org. In some situation, there may be 2 plants to assign to the same sales area.

      Plant is a location where material stock is kept and could, for example represent a production facility in the system.

      MM is primarily concerned with the material flow. From a MM point of view, a plant is, above all, a location where material stock is kept.

      In production, a plant can represent a manufacturing facility.

      In Sales and Distribution, a plant represents the location from which materials are distributed and services are provided and corresponds to a distribution center, The relevant stocks are kept here.

      The plant has a central function in SD:

      - To use the SD functions in system, you need at least one plant.

      - Each plant is uniquely assiged to a company code.

      - A plant can be assigned to serveral combinations of sales org/distribution channles, and vice versa.

      - The plant is essential for determining the shipping point.

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