Prerequisites for Plant Creation

Question

Dear Friends,
What are the factors that determine for creation of a plant ?
Thanks in advance

Answer 1

Dear,
Factors to determin in creation of plant???
PLANT, is an organizational unit within logistics that subdivides an enterprise from the view points of production, procurement, and materials planning. A plant can be a:
o     Production facility
o     Distribution center
o     Regional sales office
o     Corporate headquarters
o     Maintenance location
If you are asking about how to create a plant:
IMG for SAP Plant Maintain 
How to Configure a New Plant in SAP?
Plant 0001 is the SAP default provide for your reference.
OX14 - Define Valuation Area (Tick one only- Once your system go live, no more changes)
             Most company take the SAP recommended choice - Value Material Stock at Plant level
             Value Material Stock at Plant or Company Level
If you valuate material stocks at plant level, the plant is the  valuation area.
If you valuate material stocks at company code level, the company code is the valuation area.
The decision you make applies to the whole client.
OX10 - Create / Change / View Plants
OVXB - Create / Change / View Division
OX18 - Assign Plant to company code
              e.g.       0001 - 0001 - All Plants
                                      Px1   - Plant Px1
                                      Px2   - Plant Px2
OX19 - Assignment of company code to the Controlling Area
OB38 - Assign company code to Credit Control Area
OMJ7 - Assign business area to Plant/Valuation area and division
             e.g. Plant Px1 - Business Area Bx1
                                                            Bx2
             Assign Valuation area to the Business Area
             .e.g. Valuation area Vx1 - Business Area Bx1
                                                     Business Area Bx2
OMS0 - Assign Factory Calendar to the Plant and Business Area
The plant plays an important role in the following areas:
Material Valuation - If the valuation level is the plant, the material stocks are valuated at plant level. Each plant can have its own material prices and account determination.
Inventory Management - The material stocks are managed within a plant.
MRP - Material requirements are planned for each plant. Each plant has its own MRP data. Analyses for materials planning can be made across plants.
Production - Each plant having they own production/planning.
Costing - In costing, valuation prices are defined only within a plant.
Plant Maintenance  - If a plant performs plant maintenance planning tasks, it is defined as a maintenance planning plant. A maintenance planning plant can also carry out planning tasks for other plants (maintenance plants).
If you want to use the application PP (production planning) or product costing and job-order costing, you must set valuation at plant level.
The valuation level that you choose affects
the maintenance of material master records
the G/L accounts in which material stocks are managed
the G/L accounts to which transactions are posted in Materials Management
Effect on the maintenance of material master records:
Depending on the valuation level chosen,
you maintain accounting data in the material master record for each plant or for each company code
you define a valuation price for the material in each plant or in each company code
Effect on G/L accounts:
If material stocks are valuated at company code level, all plant stocks of a material are managed in a joint stock account for each company code.
If material stocks are valuated at plant level, you can manage the material stocks for each plant in different accounts. For each plant, you can define a separate determination.
If several plants are to use account determination, you can group these plants in "Valuation and Account Assignment" Customizing.
The plants will be created under Client- Company code level. Plant may have storage locations, assignmed purchase organizations, groups.
Regards,
Syed Hussain.
Edited by: Syed Hussain on Nov 5, 2008 5:03 PM