What is a “plant” in SAP?

What is a “plant” in SAP?
You started working with SAP only recently? Learning the relevant terminology will help you work smoothly with the system and take full advantage of its wide range of functionalities. One of the words that may cause you problems at first is “plant”. What does it mean? We prepared a comprehensive answer to this question.

A plant is an operational area or a branch of a company.

A plant is embedded in the organizational structure as follows:

  • A plant is assigned to one company code. A company code can have several plants.
  • One plant can have several storage locations where material inventories are managed.
  • One business area is assigned to a plant and a branch.
  • A plant can be assigned to several combinations of sales organization and distribution channel.
  • A plant can have several shipping points. A shipping point can be assigned to several plants.

A plant has the following characteristics:

  • it has an address;
  • it belongs to a country;
  • it has its own material master data. You can store data at the plant level specifically for the following material master record views: MRP, purchasing, warehousing, work planning, production resources/tools, forecasting, quality management, sales, cost calculation.

A plant plays an important role in the following areas:

  • material valuation – if the valuation level is the plant, material inventories are valued at the plant level. You can define material prices for each plant. Each plant can have its own reconciliation account.
  • inventory management – material inventories are managed within a plant.
  • MRP – material requirements are planned for each plant. Each plant has its own MRP data. Material planning analyses can be performed across plants.
  • production
  • price analysis – cost calculations and valuations are defined only within a plant.

Example of a Structure for a Plant:

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Now you certainly understand what a plant is in SAP. You also know how it relates to internal organization. However, if you have problems with other terms or have questions about the configuration, operation, or use of the platform, please contact us. A Hicron consultant will remove your doubts and make working with SAP a real pleasure.

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