A plant has the following attributes:

 A plant has an address.

 A plant has a language.

 A plant belongs to a country.

 A plant has its own material master data. You can maintain data at plant level for the
following views on a material master record in particular: MRP, Purchasing, Storage,
Work scheduling, Production resources/tools, Forecasting, Quality management,
Sales, Costing.

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. If
the valuation level is the plant, you can define the material prices for each plant.
Each plant can have its own 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

 costing

In costing, valuation prices are defined only within a plant.

Prerequisites

The Company code 1000 has already been created.

Procedure

Transaction Code SPRO

IMG Menu Enterprise Structure  Definition  Logistics General 
Define, Copy, Delete, Check plant  Define Plant
Maintain the below shown addresses for corresponding Plants.

For the Plant code 1000 (XXXX Head Office), maintain the below shown address.
1.1 Plant parameters

In this step, you make the general plant settings for

Inventory Management. All settings are also contained in the individual steps of the
Implementation Guide for Inventory Management. If you want to allow negative stocks in
your plant, you have to set the XBKNG indicator in addition to the settings in this step. To
maintain this indicator, choose the step Goods Issue/Transfer Postings -> Allow Negative
Stocks in Customizing.

Activities

If you have created a plant in the enterprise structure using the Copy plant function, you do
not need to make any settings. If you have created a plant manually, you have to create a
new entry for the plant parameters.