Org structure in MM

[2831990]

I have a business scenario in MM org structure the business FMCG the company has producing biscuits   as well as they execute their own projects i believe 2 create 2 plants 1 for production  with its storage locations like raw materials, spare parts and another plant for projects operations as projects are  a critical functions and need to be more controlled  but projects doesn't has any storage locations all projects materials directly consumed 

so its better to separate into 2 plants or create 1 plant for both production and projects ?

[Eric_Yu1]

Hi @2831990, here in the process MM is for the purchasing and inventory management, when you are mentioning the project need to be more chontrolled, do you mean from purchasing view or project view?

[2831990]

@Eric_Yu1 from both if you need to have a full over for financial performance for projects functions inside the company so i think the better is to make the projects as a plant and assign a profit Centre for projects only

[jagdeepsingh83]

If you are doing Account Assignment procurement that does not go into stock what is stopping you not to using the same plant -- the same plant can used for stock and non-stock procurement --I do not see any compelling reason to do two plants. 

[Dominik_Tylczynski]

Could not agree more!

[Dominik_Tylczynski]

Hello @2831990 

I would go with a single plant both for production and projects, unless you have very compelling reasons to set up a dedicated plant for projects.

A single plant will simplify inventory management and material master data maintenance.

Best regards

Dominik Tylczynski

[2831990]

the inventory management will be for production only , but projects materials procured on account assignment P , is there any disadvantage if i create plant for project i think it will be more accurate and specific for control all projects inside the company as well as you can have overview for its financial performance if i create a profit center for projects

[Dominik_Tylczynski]

Hello @2831990 

I still can't see any benefits from the additional plant especially that you won't have inventory for projects. The additional plan will make the system setup more complex without any advantages.

Best regards

Dominik Tylczynski

[2831990]

@Dominik_Tylczynski  I think of of important reasons to create plants if i create storage locations for projects to be QTYs update not valuated so may in this case its be better to create projects as a separate plant

[Dominik_Tylczynski]

Hello @2831990 

Indeed if materials need to be separately and differently valued for production and for projects then you need separate plants - typically material valuation is on the plant level.

But you've said that you won't have inventory for projects, right?

Best regards

Dominik Tylczynski

[2831990]

@Dominik Tylczynski yes they dont have storage locations for projects items all materials purchased on account assignment once purchased on the account assignment the project charged with full materials and you cant control the QTYs my recommendation for control the projects materials QTYs to create on the system storage locations and configure projects materials types to be QTYs updates only this we enable the tracking of the QTYs of materials