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What is a Plant MM

 What is a Plant?
The definition of a plant depends on its use. From a materials-management view,
a plant can be defined as a location that holds valuated stock. A production-planning
view defines a plant as an organizational unit that is central to production
planning. A plant also can be defined as a location that contains service or maintenance
facilities. The definition of a plant will vary depending on the need of the
customer.
 Prerequisites for a Plant:
Before setting up a plant, certain other settings need to be defined. These are
described below.
Factory Calendar
A factory calendar identifies the workdays, public holidays, and company holidays.
The SAP system is delivered with some factory calendars, but a new factory
calendars can be configured based on a company’s schedule.
Country Key
A country key is required to define a plant. The system is delivered with country
keys, and new country codes need to be configured if they are not in the system.
Region Keys
A region code is required along with the country code. The region is defined as a
state or province associated with a country.
 Defining a Plant:
A four-character string defines the plant field. It can be configured using transaction
OX10. The navigation path is IMG • Enterprise Structure • Definition •
Logistics—General • Define, Copy, Delete, Check Plant.
The program screen for entering initial
plant information and the screen for entering secondary information once the initial
information is entered.

Valuation Level:
The valuation level is an important configuration step because it specifies the level
at which material stocks are valuated for the whole client. There are two options
for the valuation level: plant level or company code level.
The valuation level can be defined using OX14. The navigation path is IMG •
Enterprise Structure • Definition • Logistics—General • Define Valuation Level.
There are several situations in which there should be valuation at the plant level,
e.g., if Production Planning or Costing will be implemented, or if the application
is using the SAP retail system. Once a valuation is determined, it should not be
changed.
 Assigning a Plant:
Once a valuation level has been established, it is possible to assign a plant to an
existing company code. This assignment is performed so that all plant transactions
can be attributed to a single legal entity; that is, a company code. This can be
achieved in OX18. The path for this transaction is IMG • Enterprise Structure •
Assignment • Logistics—General • Assign Plant to Company Code.
 A plant isassigned to one company code, but a company code can have more than one
plant assigned to it.

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