converting plants to storage locations

[king_fire]

Hello All,

we have a requirement business to redesign the structure again, at the moment we have created 3 plants in the sytem and they are running, business proposes to have 2 plants to be recreated as storage locations. based on their requirements. i am from SD, would like to know what could be the major impacts for sd side if we reorganizse the organizational structure.

[former_member220617]

Dear King fire ,

As our colleagues said in the above post ,that there will be big impact if you delete the existing plants.

Instead of deleting or recreating the plants you can block those plants and create new storage location, so that it is good process and it will not impact any where in your organizational structure .

Regards,

C.B Reddy.

[former_member183424]

Why your business wants to convert a plant to a storage location ?

The main uses of a storage location is to kept material stock, but plant can be valuation area (i hope you are using plant as valuation area).

Are you aware of the material's valuation which is happening under plant level now? You can't make it storage location. And do you want that storage location will be created to that existing plant ? Are you ready to valuate all material for the single plant ?

[former_member182378]

king,

G Lakshmipathi's post is helpful. I agree don't delete the two plants, create new storage locations in the plant you wish to use.

- default delivering plant, review master data (material and customer) to change default plant, if currently defaults one of the two plants

- check shipping point determination

- check warehouse assigned to plant, storage location combination; if transfer order is part of the process

- open sales orders, and open deliveries (not yet picked) with one of the two plants. how to handle this?

- any hard coding, custom tables (and user exit etc logic) to determine other information based on these two plants, in order, delivery, billing stage

- pricing dependent on these two plants (discounts, surcharges, price, freight)

- does business have business area determined based on these two plants

- reports

- (probably for MM) transfer material from these two plants to existing plant, in two new locations - cutover activity, keep some stock in two plants for open deliveries

- as commented by Lakshmipathi, returns, credit memos from one of these two plants

TW

[Lakshmipathi]

First of all, this explanation is not enough to understand why your client are willing to go for this option.  Moreover, you also have to explain whether the manufacturing process would not be carried out in these plants.  Nevertheless, you cannot delete an existing plant from the system as it will have huge impact from all perspectives.  What you can do is to create new storage locations and assign as desired by the Business and unassign the plant from sales area.  But before doing this, you have to take into consideration how to address in case of sales returns for these plants at a later date.  Most importantly, you need to have a brainstorming with your MM and FI colleagues since these two will play a major role compared to SD as for as plant activities are concerned.

G. Lakshmipathi