Setup Step 4 — Assign Plants → Company Codes
MANDATORY
Layer 2 · MM↔FI bridge
⏱️ ~5 min
OX18
🎯 Why this setting exists
This is the bridge between MM and FI. A plant is where the physical action happens, but stock has to be valued in someone's books. This assignment hands a plant's stock to a company code — so when MM transactions happen at the plant (goods receipt, goods issue, transfer), the matching FI document posts to that plant's company code's books. Without this link, the plant is useless: no FI posting is possible, and therefore no goods movement, no PO, no material extension — nothing.
💡 Easy example
This step is simply registering that the Karachi factory (PK01) legally belongs to PakSteel (PSPK). So when iron arrives at PK01, its value shows up on PakSteel's books — not on nobody's.
Think of it as putting the building's deed in a company's name. The factory (plant) is real and physical; the company (company code) is the legal owner that files the accounts. Until you record "this building belongs to that company," the warehouse can't legally take anything in.
Think of it as putting the building's deed in a company's name. The factory (plant) is real and physical; the company (company code) is the legal owner that files the accounts. Until you record "this building belongs to that company," the warehouse can't legally take anything in.
🔗 How this connects to everything else
This tiny assignment is a load-bearing wall. Here's what has to exist before it, and everything that hangs off it once it's done.
⬆️ Depends on (must exist first)
- Step 1 — Company Code: the legal entity (PSPK / PSAE) must exist to receive the plant's stock value.
- Step 3 — Create Plants: the plants (PK01–AE01) must already be defined before they can be assigned.
⬇️ Enables (what this unlocks)
- Step 5 — Valuation Level (stock can now be valued)
- All stock valuation and the material master accounting view
- Every goods movement — GR, GI, transfer (Scenario 1 onward)
🧩 Who owns it & why MM cares
MM Enterprise-structure config. It lives in MM, but this is THE link that gives a plant's stock a company's books to be valued in. An unassigned plant cannot post goods at all — so MM cannot ignore it.
🔮 Links to other modules (now & later)
- FI The plant's inventory value lands on the assigned company code's balance sheet. This assignment is exactly what routes every MM posting to the right legal entity's books.
🔧 Configuration — fields & steps
OX18 · SPRO → Enterprise Structure → Assignment → Logistics — General → Assign plant to company code
Action sequence
- Run OX18
- Click New Entries
- Enter the 4 assignments shown below
- Save
The 4 assignments
| Plant | Company Code | Why this pairing |
|---|---|---|
| PK01 Karachi Factory | PSPK PakSteel | Pakistan operations, PKR books |
| PK02 Lahore Factory | PSPK PakSteel | Same CC as Karachi — same legal entity |
| PK03 Karachi DC | PSPK PakSteel | DC for Pakistan business |
| AE01 Dubai DC | PSAE PakSteel UAE | UAE entity, AED books — enables cross-CC STO |
🚨 Issues & fixes
⚠️ A plant can belong to ONLY ONE company code
This is enforced by SAP — you cannot share a plant between company codes. If you need MM activity for both legal entities at one physical site, create two plants (one per CC) for that location.
🚫 If you skip this step: the plant exists but cannot do ANY transaction. PO creation fails, GR fails, material extension to the plant fails. This step is non-negotiable.
✅ Verification
- Run SE16N → table
T001W→ fieldBUKRSpopulated for each plant - Or open OX18 → see all 4 rows assigned