Plant assignment
Hi,
This is regarding assignment of a plant to a company code. We have two different company codes one for plants those are in US and second one is for the plants in Canada.One of our US plant (new plant) is going to be physically constructed and going to be operated in Canada.
The questions here is when the new plant is going to be physically exist in Canada, can this future plant be assigned to US company code in the SAP system? If yes, are there any negative impacts or negative consequences that we need to take care of well before or after the assigment of plant to US company code in the system?
Regards,
Hi,
There is the difference between physical plant location and logical plant location in practice and therefore, it is very much subject to the company's policy to determine how you would like to set it up. The most critical thing is that once trying to assign this new plant to either Company Code 1 (for US) or Company Code 2 (for Canada), you should be clear on how valuation of your stock in that plant should be calculated and viewed. Whether the stock valuation for this new plant shall constitute the integral part of total stock value for Company Code 1 or 2. Another consideration which should be duly made is the taxation and legal requirements in US and Canada. For example, if you decide to define this plant as belonging to Company Code 1, then if there is a stock transfer between Plant X (of Company Code 1) to this new plant. Of course, this stock transfer process in SAP will be treated as between two locations of the same company code and therefore, no value is to be seen in the STO. However, it might be required that a customs clearance is required for this stock transfer which will require some clarification on the value of this shipment for which SAP can not enable you to produce such legal documentation.
From what you have briefly clarified, I would recommend to map this new plant to the Company Code 1 instead of 2 despite of the fact that this new plant is physically located in Canada unless there is legally acceptable in terms of stock transfer.
Cheers,
HT