Hi,
Let us assume, Tyre Industries main business is Tyre and Tube sales. These are the Finished Goods may be sold individually or combined. The customers group may also differ accordingly like whole sale, retail , individual, domestic, export, one time customers There will bea normal process of inquiry, quotation and sales order. If the stock is available in the inventory, it will be picked, shipped and goods issue is posted based on which billing is done and finally payment received from the customer with due taxes applicable. The sales pricing is done accordingly. This is from SD side.
The raw materials, semi finished goods and finished goods are created as seperate materials masters.
For manufacturing these tyres and tubes, we have raw materials comprising of rubber and other chemicals. Based on the
customer requirement, if MRP is in place, the available stock and requirement based on sales target is checked by the MRP
controller and the Purchase requisition is triggered. This leads to a Purchase Order and Procurement of raw materials and
inventories are routed through quality check and stored in a location.
There will be good receipt MIGO and Invoice verification done through MIRO and finally sent to finance department for making
payment with relative duties and taxes. Again here the vendors may be in different categories like domestic and import.
The raw materials are converted into Production Orders. in the manufacturing plant and through bill of materials and routing the finished goods are stored seperately and finally sold based on sales order.
This is a basic process and revert back if you need further details.
Best Regards,
Sadashivan
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