scenerio

[Former Member]

Dear SAP Guru's,

In our Company .......we have diffrent sister conceen in pharma business.

There are various materials used accross the organization.

If a sister concern asks for a material (Which is not in his stock) which available with us and returns the same when he gets the quantity he ordered.

I have the following option:

1. SALE s order and purchase order.

By creating the Customer and vendor in the same name and assigning the to each other.

2. Consignment process.

3. STO intercompany.

Please suggest me what would be the best practise with more options.

regards,

Amlan Sarkar

[Lakshmipathi · Accepted solution]

Dear Amlan

If you go through STO process, you need to ensure certain criterias. They are (a) what would be the billing rate of supplying plant to receiving plant and (b) what would be the rate the receiving plant would maintain. If this varies, then from FI side, there is some problem in CENVAT accounting. Long time, we were also doing through MM route and our FI guys have expressed constraints in CENVAT accounting and due to that we had to change to SD route. Sorry I dont remember what the actual issue was. So check with your FI team also. If same rate is maintained at both the plants, then there is absolutely no problem. You can go ahead.

If different rates are maintained at both the plants, then it would be better to go through SD route rather than going to MM route, where you treat the receiving plant as customer and generate sale order from that.

thanks

G. Lakshmipathi

[Former Member]

Dear Amlan,

I suggest you should go for the third option STO intercompany.

Please let me know in case of any queries.

Regards,

Rakesh

[Former Member]

Dear Friends,

Thanks for the inputs.

After discussion with you all I feel STO is the best options,

regards,

Amlan

[former_member217082]

Hi

As per my knowledge you can go for Intercompany STO process. and if the return facility is there then use the document type.IG. for return process.

Thanks and Regards

Srinath

[former_member204513]

Hi Sarkar,

As per my thinking you better go for the STO process.

Based on that you can transfer the stocks in between your concernes (Plants)when ever you need and where ever you need.

I hope it will help you

Regards,

Murali.