Organisational strucutre

Question

Hello ALL
I had a doubt on finalizing the organisational strucutre for one of our client
The basic details are as follows
1.Client hasmore then 15 plants all over the country( india) and all of them are in one state only.
2.All plants are upto one level are independent unit
3.By level means they are independent to procure a material up to a certain limit of say 1 crore
4.The are independent to make a payment to vendors which are related to their plant
5.The billing is done at head office and receipts are doen at hed office bank accounts only
6.Sale is booked at platns level
7.All plants have same output product.
8.TDS return , salary etc are done at plant level only
9.There is a centralize purchasing agency who sits at head office they procure for all the plants and material is directly delivered to plant , the goods verification and receipt is done at plant and send to hed office for invoice payments.
As materials are divided as to procure from head office or at plant,those material requirement which are need to be procure from head office are generated at plants are fulfill by Head office.Payments are done by Head office.
10.The basic raw material is procure at another central agencies and are invoiced and payments are done through that agency , ehich by month end transfer the transaction to respective plants according to goods receitps.
11.Vendors can be common to the plants or it may be secific to plants
12.Every plants prepare the financial reports monthly and submit it to HO for reveiw.
13.Yearly plants submit there report and HO do the consolidation / complilation and prepares one report for annual report and audit.
14.The auditor is one and it sign one report at client level only.
15.Every plant has different units i.e a number of units make one plant
PROBLEM/ CONFUSION AREA
NOT USING BUSINESS AREA CONCEPT AS IT IS GOING TO BE OUTDATED
1.HOW MANY COMAPNY CODE DO IT CREATE
OPTION ONE
1.SINGLE COMPANY CODE AS THERE IS ONLY ONE COMPANY SPECIFIC FINANCIALS REPORT ( PROFIT AND LOSS / BALANCE SHEET )
2.MAKE EVERY UNIT AS SINGLE PROFIT CENTER
PROBLEM WITH OPTION ONE
1.AUTOMATIC PAYMENT RUN IS ON COMPANY CODE BASIS
2.BILL BOOKING / INVOICE VERIFICATION IS ON COMPANY CODE BASIS
3.TDS DEDUCTED AND PAYMENT / RETURN IS AT PLANT LEVEL
4.HOW INTER UNIT TRANSACTION WILL BE TRACKED
OPTION TWO
MAKE EVERY PLANT AS A COMPANY CODE
PROBLEM
1.A FAT ORGANISATINAL STRUCTURE WHICH CONTAINS SO MANY COMPANY CODE
2.CAN BE SO MANY INTER COMAPNY CODE TRANSACTION HAPPEN
3.HOW TO TACKEL THE CENTRALIZED PROCUREMENT AND PAYMENT AT HEAD OFFICE
CAN YOU ALL PLEASE HELP ME TO TAKE A DECISION ON ORGANISATIONAL STRUCUTRE
THANKS IN ADVANCE

Answer 1

Hi,
Further to your querry, It is good to update your concern and interestingly, you have to create Each Plant as a Company Code.
You can over come with your problems, as follows:
PROBLEM
1.A FAT ORGANISATINAL STRUCTURE WHICH CONTAINS SO MANY COMPANY CODE
   Ans: Requirement is cumbursome and to be done as per requirement.
2.CAN BE SO MANY INTER COMAPNY CODE TRANSACTION HAPPEN
   Ans.: Let it be happen, does not a matter.
3.HOW TO TACKEL THE CENTRALIZED PROCUREMENT AND PAYMENT AT HEAD OFFICE
   Ans.: Procurement can be done from Head Office and Paying Company Code is Head Office at FBZP.
Regards
VG