Shifting of Plant to different State

Dear All,
In case of a Plant shifted from one state to another state, what should we do in SAP?
a. Shoud we change the address of the same plant & start using the same plant?
b. Should we create a new plant, upload/extend all the master data & use the new plant for all activities.
will there be any legal complication if we simply change the address & using the inventory without showing any transfer (stock out) from the old plant.
pls. advise,
Regards,

Hi,
By simply changing the name of plant to the new plant is not the right solution. The system should reflect the process how it happened actually.
There will be many implications and problem from audit, finance, taxation, legal, reporting and process point of view. Taxation will be main thrust area as the state is different.
You cannot simply do away just for the huge effort involved.
When ever this scenario is there it is like a new Roll-out.
You need to plan the following:
1) Data extraction activities
2) Creation of master data as the case may be, excise balance, initial uplaod, STO, etc
3) Migration Plan
4) Cut off date for closing the old plant and making new plant operation
5) Authorisation.
what I mentioned is not the exhaustive list, there may be more activities depending upon the business processes.
Your questions:
1) can't we use the same materials/ stock without showing any transfer in sap?
2) is there any legal implication or problem in sap auditing if don't create a new plant & go ahead with the same plant with doing changes in address, some tax data?
You need to show this as stock transfer from old plant to new plant. As it the matter of 2 differnt states,Govt Authorities can look for excise related data. If your plant in both the state or one of the state is covered under ESZ or tax holiday zone from that point of view also it is important. If the import process is there than also -as duty draw back issues/laws will be there. These all things will be already in the preview of your company legal battery.
I donot thing you need to go in that legal expects in so deep. And also it is not a straight cut answer on all legal implication, what I have mentioned is just a few. It has many dependies on state law, current prevailing law, type of goods manufactured, ESZ zones, import , etc, etc.
You plan the migration activities craftly and carefully.
Regards
Rajesh

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