Cross-Company-Code Stock Transfer Using a Purchase Order 

Purpose

In view of the accelerating trend towards globalization and the rapid increase in the number of company mergers, internal financial and logistical processes within corporate groups are acquiring increasing significance.

For example, a production plant in the automotive industry may procure components from a supplier that, despite legally and technically belonging to a different company, is actually a member of the same corporate group - a far from exceptional situation these days.

Such a procurement process differs from true external procurement largely as a result of the fact that the associated value flows have to be consolidated for group accounting purposes.

In all other respects, the processing of a normal customer-supplier relationship is necessary. Above all, this involves the following:

It should be possible to carry out a complete ordering process in the procuring plant. For this purpose, it is necessary to be able to treat the supplying plant as a vendor in the system. It must be possible to carry out a complete price determination process in the purchase order, taking delivery costs (incidental procurement costs) into account where applicable. Furthermore, it should ideally be possible to monitor delivery of the goods. This requires continuous updating of the PO history (history of the transactions ensuing from the purchase order) and possibly the use of vendor confirmations (which may or may not be MRP-relevant).

In the supplying plant, the implementation of a complete sales order processing cycle is desirable. This includes order entry (with the receiving plant as the customer), a sales-side price determination function, delivery and billing options, and monitoring of the document flow.

All processes must be capable of being monitored by the inventory management department in both the receiving and the supplying plants. In particular, the volume of stock in transit must be known at all times.

In the following process, the Hamburg plant (1000) of the IDES Corp. (company code 1000) procures shock absorbers (material number 1300-260) from the Heathrow/Hayes plant (2000) of IDES UK (company code 2000). To enable the Hamburg plant to order materials, a vendor master record exists for the Heathrow/Hayes plant (4444). The assignment of this record to the plant is carried out in the "additional data" for Purchasing. Conversely, the Hamburg plant is linked to a customer master record (1185) to facilitate shipping operations on the part of the supplying plant Heathrow/Hayes.

Process Flow

You can find the data for this process under .

  1. Checking the Current Stock of a Material in the Supplying Plant
  2. Creating a Purchase Order
  3. Checking the Stock/Requirement List in the Receiving Plant
  4. Creating and Processing a Delivery
  5. Stock Situation in Receiving Plant After Goods Issue Posting
  6. Creating Billing Documents
  7. Posting the Goods Receipt in the Receiving Plant
  8. Stock Situation After Goods Receipt
  9. Posting the Invoice in the Receiving Plant