STO vs Sales Orders for stores

[Former Member]

Hi Experts,

We are in blue print phase and working on key designs. I need some experts advice on follwoing scenario:

Client has Own stores and all the distribution centers under same company code. Franchise storesare under different company code with no DC. Merchandise are distributed from own DC to own stores and franchise stores. We can go for STO with delivery and billing for own stores. For the Franchise stores what will be the best option based on your experience i.e. use STO with delivery & billing or use Sales Orders? Please advice.

Any help is highly appreciated.

Regards,

KHAN

[Former Member · Accepted solution]

Hi Khan,

For distributing Merchandise within your Company Code,

you can go for normal STO with delivery and with or without Billing.

In case of Selling Merchandise to your Franchise, you Should Not go for STO.

You have to always go for Sales Order.

Regards,

Selvakumar. M

[Former Member]

Hi khan,

even though sales order may seem a good idea. it is advisable to use a STO with a dummy company code for the franchisee.. why??? answer is you can always see the stocks in transit which is not possible with SO

Jonk

[Former Member]

Hi,

We have a similar scenario with us and we are following the PO method. The advantage of the this method is that you willdefinitely be able to know the stock position in transit but also you can set a release strategy for the PO which will further give more control over the stocks going ahead to the franchise... In addition to that, if there are any consignment process in the relation between the franchise and parent, that also can be mapped in the PO Method.

Also to identify the cross company PO we have defined a seperate number for delivery created through this process.

Hope this helps..

Regards,

Vinod Kapote.

[Former Member]

Thanks to all of you.

Vinod, are yuo also using billing with STO process? If yes is it commercial billing or LIV?

Thanks,

KHAN

[Former Member]

answered