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Parameters to deside no of plants

Former Member
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Hi friends

Can any one tell me the parameters to consider for deciding no of plants for client.

Ex: Client having one company and having 3 divisions .

1st division delas with trading Electorning good, Purchase as finished components and sale(Trading)

2nd division delas with Airconding trading. It also involves installationa at customer place. but no production facilty

3rd division : Power equipments . Purely purchase and sale and instalationa t client place.

All the 3 divison have office in same place. and have seperat purchase person.

wheterh we can go with one plant or 3 plants ? What are all the details to be considere on materila angle for above consideration

Rgds

Madhavan

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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Hi

If all the three dvisions have seperate Inventory valuations & Stock keppings then you need to create 3 plants.

If the Chart of accounts for the 3 divisions are different then you may need to go for three compnay cdes in that instance

Thanks & Regards

Kishore

Former Member
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It totally depends on the valuation...

if client needs different valuation control you have to create 3plants...

Former Member
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Hi What do you mean by valuation control. Here all are into different product and physical locationa also same. the products also different for all the division (No dupilcation of product).

Can u guide me further on this.

Rgds

Madhavan

Former Member
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hi ask client some questions to clear the poine

Do they take the physical inventory division wise ?

if yes then create plant division wise.

what is the volume of turnover of the divisions ?

do they have the excise registration for trading saperate ?

(if they are in india)

if so then ask for do they maintaining RG23D registers division wise ?

if answer of all above is yes then go for three different plants

regards,

sujit

Former Member
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Hi

The location is middle east. so no tax. Physical location for storage is same. why not we have single plant and 3 storage location. Please confirm

Rgds

Madhavan

Former Member
0 Kudos

balance sheet in FI they are having Division wise or single.

if single then u can have one company code with one plant and three divisions in Sales.

if division wise then u can have three company code and each company code is having one plant.

regards,

sujit