Create Plant or just separate Storage Location

I am trying to determine where the magical line is to decide whether to establish a separate address location as a different plant or location. My example is not very complex. It is a satellite production location that produces products for use as raw materials for another production facility that assembles and sells the final product. The satellite location will have a separate cost center and will use activity rates and costing sheets for overhead recovery. My inclination is to set the satellite facility as a plant but supply Chain team sees this as overkill and would rather make it simply a storage locations.
Can someone provide a white paper or list of positives and negatives to storage location versus plant? I know some things might involve the following:
1-If valuation of products are different or may at some point involve different values by location, a plant is needed.
2-If products are sold directly from location, plant would make more sense.
3-If inventroy is transferred between locations with differing addresses, various tax and bank reporting could necessitate the use of separate plants.
4-When manufacturing activities exist, a plant is logical.
5-If all purchasing is performed at a central location, a separate plant may not be required for this purpose.
My existing dilemma relates to the fact that we use costing sheets by plant. Without a separate plant, using different storage locations forces me to use the Material Origin Group to dileneate the extra location if I don't want to use the plant based overhead rates. This seems like a violation of best practice and proper use of SAP.

Hi
If you define satellite production location as Storage location you can not do profitable analysis at this unit. My suggestion is activate MRP area at storage location level. So that satellite production unit is treated as separate entity under the same Plant. This will just help you to do the Supply chain activities (purchasing, Sale, Prod and STO) at MRP area level. But Profitability analysis still can be done at Plant level only.
This will solve your point numbers 2, 3, and 4.For material valuation (Point number -1) I think you have to go for split valuation.
Regards,
Velmurugan S

Similar Messages

Any delivery note can be created if transfer materil in storage location

hi
any delivery note can be created if transfer material between storage location in the same plant. Or can i do the GR for that

Hi,
This might help you.
311 Transfer posting storage location to storage location in one step
The quantity is transferred from unrestricted-use stock of the issuing storage location to unrestricted use in the receiving storage location.
Possible special stock indicators:
E, K, M, Q
See also 321, 343, 349, and 455 for other stock types
313 Stock transfer storage location to storage location in two steps - removal from storage
The quantity is transferred from unrestricted-use stock of the issuing storage location to stock in transfer in the receiving storage location.
Possible special stock indicators:
None
315 Transfer posting storage location to storage location in two steps - placement in storage
In the receiving storage location, the quantity is transferred from the stock in transfer to the unrestricted-use stock.
Possible special stock indicators:
None
Reward points if useful
Regards,
Amrish Purohit

Default SC Plant Company code and Storage location Based on Position

Hi All,
We are on version SRM 7.02.
We are using SAP ECC R/3 EHP7 based system as a back end FI and HR system.
Org structure in SRM is replicated fromm HR system.
We have case of concurrent employment in the HR org structure , which means one USER can be assigned to multiple Positions in an org structure.
We have a user A , who is created in Two different org units say O1 , O2 occupying positions P1 and P2, belonging to company code C1 and C2.
Whenever a SC is created a custom enhancement shows all the user positions to him and he has to choose one from the list of positions.
Now based on the selected position(P1) , i have to default plant(PL1), storage location(SL1) and Company code(C1).
Even after defaulting attributes based on the position, user gets an error "company code C1 is not valid for user"
This error (Message class : /SAPSRM/CLL ; # 135) is thrown from method : /SAPSRM/CL_CH_WD_DODM_SC_I_BD /SAPSRM/IF_CLL_MAPPER~UPDATE
after getting user's Company code using following method.
/sapsrm/cl_pdo_shared_user=>/sapsrm/if_pdo_shared_user~get_company_code
This gets Company code as C2 ; Based on Users Attributes and not based on User Position attributes.
If i overwrite values fetched by this method in Implicit enhancement, then plant(PL1), storage location(SL1) are not getting fetched.
Does anyone have any solution for this problem?
Regards,
Ashish Shah

Hi MURUGESAN !
      Can you give me some information more in Special Procument Configure in plant 2000 like:
          - Procurement type (maybe F)
          - Special procurement (Maybe U)
          - Plant (Maybe 1000).
          - Issuing plant (maybe 2000)
       We will check together.
       Regards,
      Tony

Stock transfer between plants without STO and storage locations

Hi.
In case of stock transfer betwen storage locations with one step it is possible to do stock transfer between different stock types. But in Two step it is only possible to do stock transfer from unrestricted to unrestricted.
In case of Stock transfer between Plants without STO in one and two step stock transfer, it is possible to do stock transfer from unrestricted to unrestricted.
Is there any reason for this?

Hi
Thanks for your reply. But i could not understand the sentence - But this is not possibles with 2 step procedure. becasue 2 step is recored will be maintained . In 2 step it not possible. Can you please eloborate on this
Regards,
Vivek Swarnapuri

EWM Plant - four storage locations

Hi
Can we have following structure for eWM ?
LSP warehouse provides warehouse facilities for customers. Stocks are recevied for different customers in warehouse.
ERP Plant : 0001
Storage Locations :
ROD1 & AFS1 --> In LSP , stocks for a particular customer are received in this storage locaiton.
ROD2 & AFS2 --> Stocks for another customer are received in this storage location.
The stocks for different customers are to be tracked in EWM.
Party entitiled to dipsose is linked to Plant , so how to track stocks from different storage locations?
Any other criteria which can be used for tracking customer stocks in LSP ?
Regards / Vinod Sedani

Hi Juergen
Thanks Juergen for your quick response.
Different storage locations are required, because standard solution of LSP (creating plants for different customers ) is not being used.
The LSP Plant receives stocks from different customers in Plant ( with say different storage locations - SL01 , SL02 , currently not using eWM and want to keep the same process of receiving say in ASF1 , ASF2 in ewm).
The Party Entitled to dispose for different customers means creating different plants for different customers , which client do not want.
Is there any suggestion or option to track stocks from different parties in the same plant of LSP ?
Any other stock segregation criteria which can be used to track stocks for different customers ?
Can Owner be used ? I am not sure how "owner" works or it is just for consignment stocks ?
Thanks and Regards / Vinod Sedani

Default Plant and storage location for components in MFBF

Hi,
I have 2 plants 1000-procurement plant and 2000- production plant. I am using special procurement key 70( Withdrawal from alternative plant from 1000 to 2000) for components in Plant 2000. The requirements for the components are transferred from 2000 plant to 1000 plant. The 1000 plant run MRP for the dependent requirements and procure the materials and transferred to the production storage location in Plant 2000.The raw materials are purchased in plant 1000 and transferred to Plant 2000 production storage location based on the manual reservations created with movement type 301. This is fine.
But when I do backflush in MFBF the plant and storage location for the components issue are displayed as plant 1000 which is the procurement plant and the production storage location in plant 2000-production plant location. In the BOM the production storage location is production storage location of plant 2000. Since we use the special procurement key system defaults the plant as 1000(procurement plant) insteadd of 2000(production plant). can we make this plant default to the production plant 2000 as default in the MFBF goods issue screen.
thanks and regards
Murugesan

Hi MURUGESAN !
      Can you give me some information more in Special Procument Configure in plant 2000 like:
          - Procurement type (maybe F)
          - Special procurement (Maybe U)
          - Plant (Maybe 1000).
          - Issuing plant (maybe 2000)
       We will check together.
       Regards,
      Tony

Plant vs Storage Location

Hey Gurus,
Looking for the best practice in this situation.
We are brining a new company onboard with SAP. They have one main office with two additional branches for storage and that crews work out of.
Should we set the braches up as different plants within the new company or just treat the branches like different storage locations. From my reseach there is an arguement for both.
Thanks!

>
Doughbee wrote:
> Hey Gurus,
>
> Looking for the best practice in this situation.
>
> We are brining a new company onboard with SAP. They have one main office with two additional branches for storage and that crews work out of.
>
> Should we set the braches up as different plants within the new company or just treat the branches like different storage locations. From my reseach there is an arguement for both.
>
> Thanks!
would recomend; one plant for the new company, different warehouses (both with there own storage locations) for each branch.
So plant XXXX
warehouse AXX storage location 1xxx
warehouse BXX storage location 2xxx
like you said there is an arguement for both but this way is best in my own personal opinion

MRP - Create STO for Stockk Transfer between Storage Locations

Hi Everyone,
I have a scenario where MRP run should create Planned Order as well as STO for a VSF Requirement. The reason is our Plant has got 2 Storage Locations. One is the Production Storage Location and the other is Warehouse Storage Location. The Planned Order should be for Production SLoc and STO should for Stock Transfer from Production to Warehouse Storage Location. Your suggestions are much appreciated to resolve this issue.
Thanks,
Jay.

new releaes bring new features........
not all new features can run in old environments.
I know that companies did already Storage location to storage location STOs in 4.6c but they had z-tables to assign customer numbers at storage location level, and they had changed some coding to make it happen.
I am not sure if there is an OSS note that explains the steps and modifications needed......but try to search OSS.

Storage Locations Vs Plants

Dear Experts,
An appealing business case is to move to a world where locations currently set-up as "plants" (inventory managed but necessarily WM managed), can be mapped as "overflow" storage" locations as that indeed is the physical "truth".
Now given I am talking of a productive system with SD,MM,PP, LE, WMS, APO SNP, CTM are implemented, what all considerations do I need to keep in mind before fiddling with such a drastic change..
I can only think of some repurcussions..basis general and intuitive understanding of ECC-APO integration, but nevertheless this is a major change that needs systematic evaluation of all side effects. The case for benefits is simplicity, ease of planning, reducing number of "plannable" locations (on which MRP and CTM - supply distribution is run)
Example of the supply chain model
- I have a "site" that has 10 plants making 50 products not necesarily unique. e.g. 2 plants making same stuff, 2 others making some other stuff, one dedicated to one material etc. (no case of one plant making 2 products)
-I have storage locations that are currently (incorrectly) are used to manage "quality" status of stocks e.g. 0001 means good, 0002 means on hold, 0003 means near expired etc.
-I have WMS warehouses mappping to plants. not necessarily unique e.g. 5 plants and 3 storage locations is one warehouse and another 5 plants and 3 stoarge location is another warehouse. The need for warehouse is based on material groups needing different ambient stoarge conditions
-I have CTM implemented with quotas, rules and lanes defined from these plants to customer locatons.
-I have MRP being done on manufacturing plants (for procurement) with some storage locations being excluded
-I have SNP planning (for deployment) in supply network based on net requirements at plants (distribution centers)
-I have distribution plants with its own storage locations using stor locs to managae quality status of stocks
-I hire third party warehouses as needed and also defined as plants (DC's) that also has storage locations for managing quality status.
I am looking forward to some feelers and scare factors that such a replacement of plants to storage locations may entail. Obviously it means a lot of things.. changes to valution, WMS,pegging, CTM results etc.
Let me know if you want me to elaborate more on business context. Also please re-assure if such a change to a productive system is at all advisable plus any SAP warnings.. I browsed but didnt find much on such a "re-engineering" exercise.
Regards,
Loknath

Dear,
You can create more plants by the same way I have created plant 2001.
- Tcode SPRO (IMG Customizing)
> Enterprise Structure
>> Definition
>>> Plant Maintenance
>>>> Maintain maintenance planning plant
And the storage locations:
- Tcode SPRO (IMG Customizing)
> Enterprise Structure
>> Definition
>>> Materials Management
>>>> Maintain storage location
Best regards,
Eduardo Junior

STO between plant and storage location MRP area

Dear PP/DS experts,
For some business requirements, I want to model stock trnasfer order scenario from plant to storage lacation MRP area but the system only make stock trasnfer reservation.
In my EPR system, I maintainted storage location MRP area material with special procurement 45, then the transportaion lane is created between location 1200(location type 1001) to MRP area 1300(location type 1007).
My question :
1) Is it possible to make stock transfer order scenario instead of stock transfer reservation between plant and MRP area ?
2) If possible, Is there something to do more in master data maintenance except mentioned above in ERP ?
Thanks in advance for your help.
Regards,
Lee, Seung Won

Hi,
Yes you can perform intracompany STO (Plant to plant) and STO at Storage location level at the same time,
We are using same for our client.
http://www.architectsap.com/blog/sap/how-to-setup-stock-transport-order-between-two-storage-locations/
Regards,
Gopala.S

Plants vs Storage location usage

Hi experts,
I am facing the following issue, in the company I am working we have a mix between manufacturing, purchasing and assembling and we have the PS module (without material ledger).
The plant production has several products that are assembled in the customer by our responsablility, the semi finished products are sent to the customer and assembled there, all this information is managed by PS. We are going to implement material ledger and the company code structure is going to change. I need an advice, it is possible to have the customer and our manufaturing place in the same Plant and in different storage locations? or it is beter to have different plants for the production and the customer site?
Regards.

HI Diego,
You may want to look at this link:
http://help.sap.com/saphelp_46c/helpdata/en/75/ee0a9555c811d189900000e8322d00/content.htm
Best,
Aneesh Raghavan

Distribution center as plant or storage location

Hi Experts, If I have a distribution center at a particular location, how to decide whether it should be configured as plant or as a storage location?

It totally depends on the kind of business your company is in to and this should be decided by your company during implementation.
Ideally a DC can be mapped to a Lean Warehouse OR Full Warehouse and then the same Warehouse can be assigned witha Storage Location.

Automatic selection of products in a plant but differant storage locations

Hi Gurus
Here is a requierment from our client that is they maintain differant storage locations based on differant prices however they want automatic selection of products during sales order entry, based on manufacturing date like FIFO comparing differant storage locations with in a plant. if you have come across these scenario and other solutions relate to this
please share your experiance
with regards
Baalakrushnan.da

hello, friend.
yes, we have come across this. first, your material should be batch managed specifying FIFO. then, inventory/availability search should be plant level instead of storage location level.
i will try to get back to you with the specifics. but in the meantime, you could probably get your MM consultant to help you with this.
regards.

Issue Storage Location in Components details Subcontracting PO

Hi all
I need to implement this process in SAP:
I have to send material X, from storage location B 'broken', to my supplier for repairing. After He has repaired it I post good recipe of material X in the storage location A 'adjusted'.
I plan material X through MRP at plant level only for storage location A.
In the material master I've set procurement type 'F' and Special Procurement '30'.
I created a recursive BOM for material X where I entered, for component X, B as issue storage location.
In this way MRP run (with '1' as value of 'Create PR' parameter) creates subcontracting PR with X as material to buy and X as component to send to vendor, but in the detail of component I have the storage location field kept empty.
This for me is a problem.
In fact when I create PO from this PR automatically through ME59 transaction, the System creates a requirement at plant level for component X.
But this requirement is for broken material and has to be covered by stock in storage location B.
I know that is not easy to understand all the details of this process, even due to my english, but I hope someone can help my.
Please if you need a clear up, ask me.
Thanks for your help
Yours faithfully
Paolo Verderio

Hi Paolo,
don't worry. Your explanation is well understandable.
I cannot advise how to fix the problem with the missing storage location. I just have some doubts that it is the right approach to distinguish between an boken and a repaired material by storage location. Even for stock valuation there is certainly a difference between both, that you can't make transparent by storage location, and also if you look at your available stocks.
I would recommend to have either different materials or different valuation types. I have to confess that I am not sure that valuation types would help for your subcontracting PO.
best regards,
Udo

Help required -for MRP Run at storage location level

Hi ,
we need to have separate MRP fro two storage locations with direct procurement from Storage locations. Right now we have MRP run at Plant level for all the storage locations. we donot want the materials in these two storage locations to be planned at Plant level only with Separate storage locations. Plant level MRP will run for the other storage locations .
I have created separate MRP areas for the storage locations & activated MRP for MRP Areas client level. material masters for the two storage locations have been asigned the MRP areas & maintained the MRP area data in material master .
When we run the MD01, the Planned orders are getting created at both MRP areas plus at the Plant level.we donot want the planned orders creation at Plant MRP area level-only at the storage location level for those two storage locations MRP areas.
Can anybody guide me -how to achieve that ? Did we miss any configuration?
I tried to maintain scope of planning & getting error for parallel processing .
Do i need to maintain parallel procesing with servers ?
Pls need your input on this. Any help will be highly appreciated .
   Thank you in advance.
    Regards,
    Krish.

Hi,
     Go to IMG settings 'Materials Management + Consumption-Based Planning + Planning + Define Storage Location MRP per Plant' Enter your Plant, It will show list of storage location in that Plant, then select 2 in 'MRP Indicator' field for storage location for which u want to plan seperately.
Hope It will clear Your Problem
Regards
Sunil Kumar

Create Plant or just separate Storage Location

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