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Intercompany Sales + Subcontracting Dropship Process

Company Code A creates an Intercompany sales order for a customer for a product with delivering plant from Company Code B. While creating a Sales Order, a PR should be raised to company code B

Based on the PR, Company Code B sends the product to a subcontractor for enhancement on the product. Ship to in sales order is final customer.

Company Code B ships the product to subcontractor in a subcontracting PO.

Subcontractor receives the product and performs enhancement operation and ships enhanced product to final customer.

Once customer receives the enhanced product, invoice the customer, Company Code B creates inter-company invoice to Company Code A at Cost + mark up.

Please help me in how shall I Map the scenario? system is S/4 Hana.

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2 Answers

  • Posted on Feb 11, 2018 at 03:54 PM

    It sounds as if your subcontracted material is the same material number as the component.

    It is from my point of view not logical to create a PR "to company code B", what ever this "to company code B" really means.

    With a sales order which has already plant B as delivering plant there is no reason for an additionally create PR.

    The requirement is immediately seen in plant B when the sales order is saved. And when the product to be sold to the customer is not in stock then the MRP run in plant B will create a requisition or planned order to get this material into stock so that it can be shipped from here.

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    • Former Member Jürgen Lins

      Actually that's the scenario which you have identified. The customer is going to provide us a notification that they have received the goods, after which we will raise an invoice to them and than to company A.

      Now, the question that I am embroiled in is, With which documents reference will I be able to create and invoice to the customer and than generate the inter-company invoice.

  • Posted on Feb 11, 2018 at 04:01 PM

    Hi,

    Seems the complexity is mainly with the subcontracting along with third party. You may check the option with the business function:

    LOG_MM_OM_2 - refer the documentation on the standard feature "Third-Party Order Processing for Subcontracting" in the help doc: https://help.sap.com/ERP2005_EHP_05/helpdata/EN/5A/6998297CE547318B0D9ABF7432B772/frameset.htm

    Regards,

    Prasoon

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