Process required

[Former Member]

Dear Experts,

Please suggest best possible process for the below scenario.

Company A and company B are under same flagship.

Company A is located in Korea and company B is located in Germany.

Company B manufacture the products, company A will do the booking of the orders and billing the customers.

So customers are located in the Germany. Initially the goods are dispatched to customer location, and billing will be raised only when the customer uses these goods in their production.

The goods will be dispatched from Germany company, but billing should happen from Korean company.

Question 1: What is the process to send the goods from company B (Germany) plant to customer location?

Question 2: How to bill for the goods from company A (Korea)?

Regards,

Smart SD

South Korea

[Former Member]

Thanks for solution

[Lakshmipathi]

Initially the goods are dispatched to customer location, and billing will 
   be raised only when the customer uses these goods in their production.

I think you can go for consignment fillup process where

a) you treat Company A as Sold To Party and Bill To Party

b) you treat Company B as Ship To Party

You said that goods would be despatched to customer location and billed only the materials are taken for production, in consignment fill up process, you have one constraint.

That is you need to deliver the goods to Company B in Germany who should be treated as your warehouse. Here I also have one doubt. Where is customer location ?? Is it within the premises or a different location ??

If it is a different location, then you should treat that location as a separate storage location and as and when you transfer the material from Company B to this location, you have to make transfer posting. Then finally, commercial invoice for the actual quantity taken for production.

thanks

G. Lakshmipathi

[Former Member]

Make the Korean company the sold-to and bill-to for sales from the German company.

The German company then delivers to German customers and bills the Korean company.

When the Korean company is billed by the German company, the Korean company bills the end customers.

There are two complicating factors:

1. There is an inter-co relationship.

2. The deliveries to the German customers are consignment fill-ups.

I am not certain, but I do not think that the SAP inter-co process allows for consignment processes, so I think that you will need to set up the Korean company as a true "arms length" customer.

[Former Member]

It's a new thought , let me try