Different plant codes

[#1]

Hi,

Our one of the client has maintained different plant codes which are in same geographical area. Also they have maintain different plants code which are 6 kilometer away from each other.

So kindly confirm what would be the impact if i club all this plant to one plant and give different storage location to respectively divisions.

Also put some light that why clients go to different plant codes if the location is in same geographical region.

Regards,

[Former Member]

Dear Sun Riser,

It is common to have multiple plant codes which are physically closer to each other, or often located within a single campus.

The Actual business design, processes, and requirements drive these organizational settings.

You may also recall that the earlier versions of SAP did not support the STO functionality between storage locations within a plant; and the newer versions do.

Assuming that your client has their SAP system since long, they might have set up the organization structure with this limitation earlier; and continue to operate with that design even with the newer version for simple reason of continuity and not planning to go for re-implementation of the whole system for this functionality, unless they see significant benefits.

There could be various reasons. Few examples below -

a. Organizational Reporting requirements at different plant levels

b. Product Costing requirements at Plant levels

c. Internal Profit center accounting requirements

d. Buyer-Seller relationships between plants

e. Earlier SAP versions did not support internal STOs between Storage locations within a plant

The change that you mention is a significant Orgnizational level change requiring probably a mini-project ; and hence, you the business may wish to consider the investments required vs the real benefits expected; before actually changing them.

Regards,

Senthil