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Author's profile photo Ranjith Njattuvetty Ravi

Production Planning in a cross Plant/Company set-up

Hello Everyone,

This document explains the steps required to configure a system for Production planning in a cross Plant/Company set-up. Many members post questions with a bit of variation regarding this scenario. Hopefully, This blog will address the below 2 scenarios.

 

Company Plant Header Mat Item Item Item
Scenario 1 7000 7001 311 312 250 321
7000 7002 250 271

 

Scenario 2 7000 7001 311 312 250 321
8000 8002 321 327


Business Scenario 1
: Different Plant in same Company code

The customer is placing a Sale Order in the 7001 plant.
The manufacturings of the products are happening in different plants.(i.e Assembly of the product happening in the plant (7001) and Semi-finished products are produced in another plant(7002)).
The demand from 7001 plant should come to 7002 plant and need to produce them according to the requirement.
After manufacturing the semi-finished product, the products from 7002 plant stock will be shipped(Stock transport Order) to the assembly plant (7001) for the assembling process.

 

 

 

Prerequisites:

Master Data:

Material Type Number Plant Example BoM Routing PV
FERT 1 7001 311
HALB 1 7001 250
ROH 1 7001 312
HALB 1 7002 250
HALB 1 8002 321

 

Master Data Changes:

Material Plant Procurement Special Procurement
311 7001 E
250 7001 F 90
312 7001 F
250 7002 E 70
321 7001 F 80
321 8002 E 70

 

 For 321 material maintain the same changes.

 

Configuration:

Special Procurement Key: 70,80 and 90.

 

Special Procurement Key: 70 in SFG manufacturing plant

 

Special Procurement Key: 80 and 90 in FG/Assembly plant

 

Demand in both Plants (7001,7002)

 

In the 7001 plant, we will get STO PR. PR can be converted in STO purchase order. The item category will be “U”.

Please continue the normal STO process.

 

 

Business Scenario 2: Different Plant in different Company code

The customer is placing a Sale Order in the 7001 plant.
The manufacturings of the products are happening in different plants.(i.e Assembly of the product happening in the plant (7001) and Semi-finished products are produced in another plant(8002) under 8000 Company code).
The demand from 7001 plant should come to 8002 plant and need to produce them according to the requirement.
After manufacturing the semi-finished product, the products from 8002 plant stock will be shipped(Stock transport Order) to the assembly plant (7001) for the assembling process.

 

 

 

Demand in both Plants (7001,8002)

 

In the 7001 plant, we will get STO PR. PR can be converted in STO purchase order. The item category will be “U”.

Please continue the normal STO process.

 

Conclusion:

The production cost will capture in respective manufacturing plants. if the plants are in a different place then you can add transportation cost in the STO P.O.

 

There is N number of scenarios for Multi Plant/Company Planning, I hope this blog has established a baseline understanding of how Multi Plant Planning works.

If you have any queries please feel free to ask.

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      3 Comments
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      Author's profile photo Simin George
      Simin George

      Good detailed information, Thank you Ranjith.

      Author's profile photo Kumar Semmalai
      Kumar Semmalai

      Thanks for sharing the information Ranjith.

      Just curious to know about the price control for plant 7001 and 7002 with respect to the materials?

      is it Like ( 7001 - V and 7002 - S)?

      Author's profile photo Ranjith Njattuvetty Ravi
      Ranjith Njattuvetty Ravi
      Blog Post Author

      Hello Kumar,

      Yes, The price control should be "V". Otherwise, we can't capture the additional cost incurred while doing the STO.