Intercompany Stock Transfer

Intercompany Stock Transfer Business process Overview 

• The stock transfer process begins with a requirement to transfer material from one plant to another Plant. Both plants belong to the same organization but different company codes. This request, in the form of a stock transfer requisition, may be created in the procuring plant automatically by MRP or manually by a buyer.
• The material master must exist in both the procuring (receiving) plant and the providing (shipping) plant. Also, stock transfer purchase orders are not subject to approval like other purchase orders. A buyer validates the accuracy of the stock transfer purchase requisition and converts it into a stock transfer purchase order. 
• A warehouse clerk at the shipping plant monitors the materials due to be shipped and creates deliveries as required.  Once a delivery is created, a pick list is generated, a warehouse clerk gathers the materials and confirms the picked quantities. Once the delivery is complete, the delivery quantities are issued, appropriate documentation is generated, and the goods are shipped.
• Goods are received at the receiving plant referencing the delivery number on the shipping documents.
• At the shipping plant the accounts receivable clerk creates an invoice and sends it to the procuring plant. At the procuring plant the accounts payable clerk receives this invoice with reference to the purchase order.

High Level Over view

• Stock transport order processing in receiving plant
• Delivery processing in supplying plant
• Goods issue processing in the supplying plant
• Checking Stock in Transit in the Receiving Plant Stock Overview
• Billing processing in supplying plant
• Goods receipt processing in receiving plan
• Invoice verification processing in receiving plan

Sub contracting Business Process

Subcontracting process involves sending raw components to a  subcontractor, or let purchase component and let vendor directly delivery component  to subcontractor for specific manufacturing processes, and receiving the value-added  finished material back into inventory

A subcontract purchase requisition is either generated via the Material Requirements  Planning (MRP) process or manually by a requestor. A buyer validates the accuracy of  the purchase requisition and converts it into a purchase order. The purchase order is  subject to approval based on predefined parameters prior to being issued to a vendor.

Component can be receipt into your own storage location or vendor can delivery to your  subcontractor inventory.

The consumption of sent components is recorded upon receipt of the value-added  finished material. The vendor sends the invoice for the services provided which is paid  during the normal payment cycle

High Level Key process flows as below

1. Create Demand
2. Create Sub Contracting PO
3. Deliver Components to Subcontractor
4. Receive Sub Contracted Goods
5. Payment to Sub Contractor

Sub process Overviwe

1.       Purchase order creation based on a scheduled purchase requisition created by last 

2.        MRP run

3.       Purchase order approval (if required)

4.       Purchase order can delivery directly to subcontractor side

5.       Outbound delivery

6.       Goods issue for delivery and shipment (if required) to subcontractor

7.       On goods receipt, Goods receipt for purchase order delivered by subcontractor

8.       Invoice receipt by line item and Pay to vendor

Finished Goods Sourcing

High Level Process Overviwe

This scenario describes both the Finished Goods Sourcing and Raw Material Sourcing functions

Purchase Order

Inbound Delivery

Goods Receipt

Invoice Document

Sub Process involve in Finished Goods Sourcing

• Determination of requirements (raising a purchase requisition)
• Outline Agreements:  Contracts or Scheduling Agreements
• Source Determination
• Vendor Selection
• Purchase Order Processing
• Goods Receiving
• Inventory Management
• Invoice Verification