Two company codes Drop ship configuration

[Former Member]

Hi There,

  I am working on drop ship process between two company codes located in two different countries. One company code does sales only and the other company code maintains manufacturing and Shipping. Marketing company creates sales order from customers and raise automatic PO for third party item fulfilment. Second company sends goods directly to customer and sends intercompany invoice and shipping notification to company ABCD. The configuration is as follow..

1.  Company code     ABCD            marketing   

         Sales org.        ABCD

    Dist. channel          AB

    Division                  CD

    External customer  1000

  Intercompany vendor  2000

  Intercompany customer 3000

2.    Company code     EFGH          manufacturing and storage

         sales org.           EFGH

      Dist. channel          EH

       Division                 CD

       Plant                    EFGH

     Storage location       FP01

         Lean warehouse    EGH

  Intercompany vendor  2000

  Intercompany customer 3000

Material is extended to both company codes. For EFGH it is maintained as FERT/NORM and for ABCD it is maintained as HAWA/BANS. Stock is maintained at Plant EFGH and stro. loc. FP01 as unrestricted use.

Can someone please advise on the following factors.

1.What should be the settings  vendor company code for creating PO from auto purchase requisition being created after saving sales order from customer 1000 to Ccode ABCD. And after doing dummy MIGO for the above mentioned PO, how to send invoice to customer 1000 in MIRO.

2. Is it correct to assign plant EFGH on the third party sales order or I should create dummy plant for Ccode ABCD.

3. How ccode EFGH would be able to ship items to customer 1000 W.R.T PO. Do I have to create sales order to EFGH with reference to PO?

4. What should be settings for intercompany customer for intercompany billing.

Thanks

Teghbir

[Shiva_Ram · Accepted solution]

1.What should be the settings  vendor company code for creating PO from auto purchase requisition being created after saving sales order from customer 1000 to Ccode ABCD. And after doing dummy MIGO for the above mentioned PO, how to send invoice to customer 1000 in MIRO.

You need to use item category as TAS in the sales order of the ordering company code ABCD. You may not need to do dummy MIGO unless otherwise dictated by the business. The ordering company ABCD can seek any shipping notification from supplying company code and based on that can create customer invoice (sales order related invoice).

2. Is it correct to assign plant EFGH on the third party sales order or I should create dummy plant for Ccode ABCD.

This is correct, you can assign plan EFGH in Third party sales order.

3. How ccode EFGH would be able to ship items to customer 1000 W.R.T PO. Do I have to create sales order to EFGH with reference to PO?

In the purchase order that company ABCD creates, the delivery address should represent customer address.

4. What should be settings for intercompany customer for intercompany billing.

Since delivery between company codes is not made, you need to refer OSS Note 63459 - Order and third-party-related intercompany billing

The setting is similar to any regular intercompany scenario.The only difference is billing part, which is given by the above OSS note.

Regards,

[Former Member · Accepted solution]

Hi Shiva,

    Thanks for your reply. Just further Info. regarding my issue specially with company code EFGH:

1. I am able to create PO in ABCD for customer 1000 from sales order, item category TAS and schedule line CS. In PO delivery address is coming up correctly as of customer 1000, able to do goods receipt as of following settings in OME9 of acct. assignment category which is 1. For this PO my vendor is 2000, which is created for Company code ABCD is this correct? If yes then what are further settings required for this vendor to deliver goods from Plant EFGH to the customer.

2. How to use PO created in step1 by Company code ABCD to vendor 2000 (which is vendor for company ABCD) to initiate goods issue or create sales order  to deliver goods from plant EFGH(company code EFGH) where inventory of goods is located, to delivery address of customer 1000 of company code ABCD, as mentioned in PO.

Regards

Teghbir