All the materials are stored in the plant. Whenever a material comes in or goes out of a plant it has a value in money. This assignment updated the balance sheet and profit & loss account during the stock level changes.
In SAP, the valuation level is set at the plant level. To figure out how much your inventory is worth, the system needs to know which company code owns that inventory.
By linking a plant to it, all local manufacturing or storage activities are reported accurately for tax purposes under the particular legal entity.
If you want to move the stock transfer between the plants in the same company and it this assignment ensure that no sale happens and just an internal stock movement.
spro-sap reference img-sap customizing implementation guide-enterprise structure-assignment-logistics general-assign plant to company code-OX18.
Enter you company code, plant and press enter it will show the name of your company code and the plant.
Then, click the save button.
Now the company code 1959 is assigned to the plant 1959.