What is Plant in SAP / Meaning of Plant in SAP

A plant is an operational unit in the company and it is a location where the business deals with stock. It has different meanings for different modules like PP, MM, and SD.

Meaning of Plant for different modules.

PP: – Plant is a location that provides manufacturing facilities and Manufacturing Requirement Planning.

MM:- Plant is a location where the material is stored.

SD: – The location from where the Goods/Services are distributed to customers is called Delivering Plant.

Relation of Plant with other organizational units.

One company code has more than one plant but one plant can belong to or be assigned to only one company code

When Sales Organization and Distribution Channel (Distribution Chain) is assigned to Plant then it will become Delivering Plant.

One plant can supply goods and services to more than one sales organization through different channels by assigning plants to several distribution chains.

In the case of an intercompany sales process Plant can be assigned to a distribution chain that may belong to a different company code.

The plant plays an important role in the following areas:

Material valuation may be at the Plant level or company code level
Inventory management: The stocks of materials are managed within a plant.
MRP:- Material Requirement Planning
Costing valuation prices are defined only within a plant.
Plant maintenance

Attribute of Plant

It has its own address and factory calendar.
A plant has an address.
A plant has a language.
A plant belongs to a country
Length is four Character Alpha-numeric Key


Define Plant (T001W)

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