plant , depot ..

[Former Member]

Hi,

Can any one explain me the difference between plant , storage location, depot and warehouse.

Better if you explain with an example.

thanks

Devi Reddy.

[Former Member · Accepted solution]

Hi Devi,

Simple explanation.

1. Plant:

Where we produce or manufacture the material or products. Once the products are manufactured the products should be stored ie storage location.

2. Storage location: where the manufactured material are stored. the storage location with be under the plant.

either it may be Raw materials or finished goods.

3. Depot:

A centralized store or operating base for logistical use by commercial or governmental bodies for storage of goods where the manufacture is held responsible and have the authority to sell the goods.

Best say external storage location for the plant, where the goods transfer taken into account.

4.warehouse: Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. the company can use the warehouse by the external bodies like GATI , etc.

thanks

Kuntla

[Former Member]

Hi

Devi

Plant

Plant is a place where good are produced or services are given with the help of man and machinery.

A plant has the following attributes:

o A plant has an address.

o A plant has a language.

o A plant belongs to a country.

o A plant has its own material master data. You can maintain data at plant level for particular: MRP, Purchasing, Storage, Work scheduling, Production resources/tools, Forecasting, Quality management, Sales, Costing.

The plant plays an important role in :

material valuation

inventory management

The material stocks are managed within a plant.

Material requirements are planned for each plant.

Analyses for materials planning can be made acrossplants.

Storage Location

A storage location is the place where stock is physically kept within a plant.

A storage location has the following attributes:

o There may be one or more storage locations within a plant.

o A storage location has a description and at least one address.

o It is possible to store material data specific to a storage location.

o Stocks are managed only on a quantity basis and not on a value basis

at storage location level.

o Physical inventories are carried out at storage location level.

o A storage location can be assigned to a warehouse number in the

Warehouse Management System. You can assign more than one storage

location to the same warehouse number within a plant.

o Storage locations are always created for a plant.

Depot :

A storage unit between manufacturing plant and depot. Goods are first transfer to depot from factory with / without payment of duty and after that the sale take place to the actual cutomer.

Warehouse :

A bonded stroage area to kept the finish product is called a warehouse.

The warehouse structure is consist of PlantSlocwarehouseStorage typeStorage Section+W/H Bin.

Hope this will help you.

Thx.

[Lakshmipathi]

Dear Devi Reddy

1) Plant

It consists of more buildings with facilities of various types of machineries to manufacture various products

2) Storage Location

It is a sub division of a plant. In a plant many activities are involved like procuring components from vendors, processing those components and finally make ready to sell those components. In each and every stage, you need to have a seperate location to store these components. Once you procure the component from a vendor, you need to have a storage location which is nothing but raw material storage location. From there once it is issued for production, production prople will have to store the components after some process which we can call it as production storage location. Once all the manufacturing activities are over, these components will be moved to final storage location which we call in SAP as FERT storage location.

3) Depot

The strategy of selling any products would be either direct selling from the manufacturing plant and the other one is sales from depot.

Sales from depots are handled differently from sales from factories because of excise law: Excise duty is payable when you send the goods from the factory to the depot, but it is not levied again when you sell the goods.

4) Warehouse

It is almost similar to depot but the difference is sales depot means only the manufacturer will have the licence to sell the products through depot whereas, to sell from a warehouse, you can appoint a third party also.

The other difference between depot and warehouse is that if a plant transfer the materials to depot, it is considered as stock transfer sale but at the sametime, if the material is transferred to warehouse, it is not considered as a transfer sale. They are just moving from place to another and still the inventory lies with the manufacturing plant.

thanks

G. Lakshmipathi