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Multiple company codes and Sales orgs

Former Member
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Hello,

We are currently on 4.7 v of SAP. We currently have a very simple org structure, where in we have one company code and one sales org.

Going forward, we are planning to make each manufacturing plant as separate company and its own sales org. So we have to add additional company codes and sales orgs to our existing setup.

Can someone helop me understand, what will be the ramifications of these changes to the existing setup.

Thank you for your help in advance.

-Naga

Accepted Solutions (0)

Answers (5)

Answers (5)

Former Member
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Hello All,

Thank you very much for all the responses. Reason why we need to create multiple company codes based on plant is, management has decided to run each plant as a separate company. Each plant will be run by its own Management team and Sales team.

Please let me know the changes that need to be done to the existing system. Below is the list i prepared which i think need to be done in the event we go for multiple company codes and Sales orgs.

Extend Customer and Material master

Changes to EDI setup

Customer-material info records and material determination(based on access seq)

GL account determination(based on access seq)

SD pricing(based on access seq)

Output determination(based on access seq)

Sales office and Sales group restructure

Plant assignment to company codes.

Reports.

Please expand the list if you think i missed some areas. Also, i dont know which SAP applications will get affected from this change. Example, FI, MM.

Thank you very much for your suggestions,

-Naga

Former Member
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Hi naga,

I agree with you,

New plants codes has to be created and it has assighned to seperate company codes under a one particular company.

but where as at the time of Stock transfer of  material to one plant to another plant , system will not accept because plants have been assighned to different company codes belongs to the same company.

That time Intercompany sales plays a major role for stock transfering the mateiral.

Regards,

Raviteja

joao_sousa2
Active Contributor
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Even if your plants have different management and sales teams you don't need different company codes. The Controlling module should have all the information to manage profitability of each plant without having to manage it as a separate FI entity.

You're thinking about the changes to SAP, but the main changes are to the processes and the emergence of inter company billing. Different company codes mean the end of the simple stock transfers. What happens when plant A wants to "lend" stock to plant B? Will plant (company) A sell it to company B? Will you have cross-company consumptions? Are you thinking about one Cost Controlling Area, or two?

Lakshmipathi
Active Contributor
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This is not the best practice.  From FI perspective, as already suggested, you can go with different Profit Centers based on each plant and that will serve the purpose.

G. Lakshmipathi

Former Member
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Hi Naga,

I think its better to craete the Plants as Profit Centers, You can get the profitability at this level.

You can also create P/L at Profit Center Level. I hope you are using CO just discuss it with the CO consultant.

Regards

Suchait

Former Member
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Hi Naga,

You can maintain the company code and sales org for plant specific,a year back i done the same kind of implementation as per the client requirement,no implication's to your existing set up.This is mainly they want to evaluate the plant specific profit & loss,reporting purpose.So that they register each plant as it's own company code.

Regard

Ram 

former_member192719
Active Participant
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Hi,

company code is a leagal independent entity. we have to preapre profit and loss, balance sheets at the end of year by law.

plant is a palce where we produce goods or kept goods.

I dont know what is reason for you to assign each palnt as company code and making the organisation structure so complex?