Setup Step 3 — Create Plants
MANDATORY
Layer 2 · Logistics · owned by MM
⏱️ ~20 min
OX10
🎯 Why this setting exists
The plant is the operational location — the physical place where business activity happens: where stock is stored, where production runs, where goods are received and issued. It is the single most-referenced entity in MM. Material has plant-specific views, MRP runs per plant, and every stock figure is "stock at a plant." Without a plant, there is no MM: nothing to receive into, store, value, or consume.
💡 Easy example
Think of a plant as one physical building or site. PakSteel's Karachi factory (PK01) is a plant; its Lahore factory (PK02) is a different plant. Each building keeps its own stock count and runs its own production schedule — 50 tons of iron at Karachi is not the same pile as iron at Lahore.
The company code (PSPK) is the company that owns both buildings on paper and files one set of accounts; the plants are the buildings where the actual work happens. One company, many plants — like one business with several branches.
The company code (PSPK) is the company that owns both buildings on paper and files one set of accounts; the plants are the buildings where the actual work happens. One company, many plants — like one business with several branches.
🔗 How this connects to everything else
A plant never stands alone. Here's the web of settings and modules that hang off it — useful whether you configure it or just need to discuss it with the FI/PP/SD consultant who does.
⬆️ Depends on (must exist first)
- Step 1 — Company Code: a plant is only useful once it can be assigned to a company code (next step) so its stock has a balance sheet to be valued against.
- A factory calendar (Pakistan "PK") must exist — used for delivery-date scheduling.
⬇️ Enables (what this unlocks)
- Step 4 — Assign Plant → Company Code (the actual MM↔FI link)
- Step 5 — Valuation Level: the plant is the valuation area in most setups
- Step 7 — Storage Locations live inside a plant
- Step 10 — Purch Org → Plant assignment
- Material master plant views (MM01) and every goods movement (Scenario 1 onward)
🧩 Who owns it & why MM cares
MM Logistics-General. This is core MM territory — you will configure and reference plants constantly. It's the anchor for stock, valuation, purchasing, and production.
🔮 Links to other modules (now & later)
- FI Plant rolls up to the company code → its stock value lands on that legal entity's balance sheet.
- PP Production happens at a plant; work centers, BOMs and routings are plant-specific.
- SD The "delivering plant" on a sales order decides where goods ship from.
- QM Quality inspection is set up per plant + material.
- WM Warehouses sit under a plant's storage location.
- CO Plant links to product costing / valuation in Controlling.
🔧 Configuration — fields & steps
OX10 · SPRO → Enterprise Structure → Definition → Logistics — General → Define, copy, delete, check plant
Action sequence (for each plant)
- Run OX10 → Copy from an existing plant like
0001or1000(copies screen/field defaults) - Target:
PK01(your new plant) - Click "Define plant" → select
PK01→ fill the fields below - Click "Address" → fill the address tab → Save
- Repeat for
PK02,PK03,AE01
Fields explained
| Field | Mandatory? | Example (PK01) | Why & impact |
|---|---|---|---|
| Plant* | YES | PK01 | 4-char unique ID. Cannot change after used. Most-referenced field in MM. Use meaningful naming (PK = Pakistan sites, AE = UAE). |
| Name 1* | YES | Karachi Factory | Display name shown in all transactions. Use city + function. |
| Factory Calendar* | YES | PK | Working days/holidays (Pakistan excludes Sundays + Eid + public holidays). Used by MRP for scheduling + delivery dates. Wrong calendar = wrong dates. |
| Customer / Vendor | Optional | (blank now) | Filled later for inter-company STO — see Step 14. |
📍 Plant address fields
| Field | Mandatory? | Example (PK01) | Purpose |
|---|---|---|---|
| Street | Optional | Industrial Area, Korangi | Output documents |
| City | YES | Karachi | Tax determination, output |
| Postal Code | YES | 74900 | Logistics integration |
| Country | YES | PK | Plant can differ from CC country (rare); drives plant-level tax |
| Region/Province | Country-dep | SD (Sindh) | Provincial sales tax (SRB / PRA / KPRA / BRA) |
Our 4 plants
| Plant | Name | Calendar | City/Region | Purpose |
|---|---|---|---|---|
| PK01 | Karachi Factory | PK | Karachi, Sindh | Manufacturing — full production |
| PK02 | Lahore Factory | PK | Lahore, Punjab | Manufacturing — second site |
| PK03 | Karachi DC | PK | Karachi, Sindh | Distribution Center — no production |
| AE01 | Dubai DC | AE | Dubai | Export DC for cross-company STO testing |
✅ Verification
- Run SE16N → table
T001W→ all 4 plants visible - Open OX10 → each plant has a factory calendar populated
⚠️ Common gotcha
Creating a plant by Copy (not Define-new) is strongly recommended — it brings across the screen layouts and dependent entries (shipping, sales views) that a blank plant lacks. A blank plant often fails later in MM/SD with "view not maintained."