Common terms in SD

[Former Member]

Hi,

I have more of an ABAP background so I would like to have somewhat clear understanding of few basic terms of SD like

Plant

Shipping point

Storage location and

Warehouse NUmber

I have gone through SAP help and F1.So,please don't paste those texts.I would appreciate anything based on your experience to explain me.

If possible,please explain me with an example.

Edited by: Christino Ronaldo on Jul 16, 2008 2:42 PM

[former_member184555 · Accepted solution]

Hi

Plant : Plant is a place where goods are manufactured or stored.

Shipping point : It is the place where the deliveries are processed. It is the highest organisational element for deliveries.

Storage location : It is part of the plant to store the goods. The storage location is always created within the plant.

Warehouse Number : It is the number by which the warehouse is identified.

Thanks,

Ravi

[Former Member · Accepted solution]

Hi,

I am a bit confused between 3 entities now

Plant:- You said that its a place which can be used to store materials/products.Then why do we have storage locations and warehouses?

Also whats the difference between a warehouse and a plant?

Edited by: Christino Ronaldo on Jul 16, 2008 3:14 PM

[Former Member · Accepted solution]

Hi,

The definition given by our friend is right,

A Plant may be a storage location also. But its main function is of production and delivery. For example take one industry scenario in India

Say u have one manufacturing plant in Mumbai which manufactures Soaps. And In that plant only after making soap you store also. So its functioning like storage location.

Now The company wants to distribute its proiduct to all over india from one manufacturing plant only. So for proper distribution it make some warehouses say in Pune, Bhopal and Delhi, Which are only used for Storing the Goods.

hope u r clear now,

Thanks,

Raja

[Former Member · Accepted solution]

Thanks Raja for the explanation.

In the same scenario, I think the shipping point would come into picture if you want to deliver goods from your main Plant in Mumbai to say Pune warehouse.Please confirm.

And if you can add any shipping point in this logic then it will be great.

[Former Member · Accepted solution]

Hi,

shipping point is the physical place from whrer u have to ship ur goods. Now say you have one warehouse in Pune, and u want to ship ur Soaps by Air To USA., So its not possible for you to make airbase in your warehouse, so for this what you do u make shipping point, say near to the airport, from ur warehouse u pick the goods and keep in shipping point near to airport which are ready for Shipping. remember Shipping point keeps the product which is picked from the Storage location.

thanks,

raja

[Former Member · Accepted solution]

Thanks Raja.

It has cleared lota things now.

Points awarded..wish I can give u more point .

[Lakshmipathi]

Dear Christino

1) Plant

This is the place where all manufacturing activities will take place apart from despatching the materials to customer.

2) Shipping Point

Based on the Shipping Point only, you can generate delivery via VL01N. Three factors will determine Shipping Point

- Shipping condition from Customer Master

- Loading Group from Material Master and

- Delivering Plant

Normally, we can have one each Shipping Points for Domestic and Exports sales

3) Storage Location

As you would be aware, in a manufacturing plant, so many activities takes place like production people will procure raw materials from RM Store, once products are produced, it has to be kept in a place. To define all these locations, we create different storage locations like, RM Storage location, WIP storage location, Finished Goods storage location etc., All sales activities will take place from FG storage location.

4) Warehouse Number

A complete physical warehouse is defined under a single warehouse number. Each and every areas like Goods receipt area, Goods issue area, Picking area are grouped under a warehouse number

thanks

G. Lakshmipathi