Intercompany scenario in manufacturing
We're in the manufacturing business with several companies in US and Mexico. As we roll out SAP at a Mexico location, we need to prorotype an intercompany scenario. Manufacturing of some of our products is started in the US and is completed in Mexico. We were hoping to use Intercompany functionality, but it seems that it is working only with finished goods. I.e. if we sell one product from US and one product from Mexico then it would work. But we sell one product, it's just manufactured in two locations.
We explored an option to enter 2 materials instead of one (IS and Mexico pieces separately), but this would mess up the reporting, require customer service re-training, etc.
In another company on a different SAP box we use the following process:
- sales order and production order are created in the US company
- subcontracting purchase order is created for Mexico company
- Mexico company creates their own sales order/delivery/invoice and completes their piece
- US company completes their delivery and invoice.
Since in this case US and Mexico companies will be in the same box, we were hoping to avoid implementing the same scenario because it involves many additional documents (POs, SOs, etc.).
Is there any way to utilize Intercompany functionality in our scenario? If not, is there any way to simplify the process described above?
We've done a lot of research and are at the end of our wits right now. Any suggestions would be appreciated.
Shiva Ram replied
Manufacturing of some of our products is started in the US and is completed in Mexico.
But we sell one product, it's just manufactured in two locations.
You have mentioned that a product is produced in US, sent to Mexico for further production involving the US semi produced material. This means it is NOT just cross company sales as US company must account for the semi finished (or raw material) that they send to Mexico in the accounting/inventory books. If my assumption is correct, then I recommend posting this in MM forum also as it looks it may involve cross company sub contracting process.