Intercompany stock issue.

[Former Member]

Hi Expert,

My client is having one scenario like: There are two company codes A and B. Both company is beside to each other. Management is same for both companies.

Now some material are common for both companies and vendor is also same. Now what happens Purchase deptt. gives the total requirements of both comapny to the vendor as purchase is centralised.

Now practically what happens from vendor point of view is , vendor first sends the material for comapny A due to you can say habbit. Now for comapny B suppose it would take two three days to get the material from vendor.

Then to avoid production confirmation delays Company B demands few qty of the material from company A but without sale and purchase procedure. And when Company B gets the same material from vendor after few days then That material gets return again to the comapny A in same qty.

Now My client does not want any account hitting in this process he only wants the stock receiving and returning between two A and B.

Please help me any solution to map this without hitting any account entries.

Regards

deepak sharma

[Former Member · Accepted solution]

Hi Deepak,

I would have suggested doing an STO from Plant A to Plant B so that inventory gets reduced from Plant A and shows up in Plant B and the design is cleaner. But this will hit accounting. Please discuss with your client and see why do they not want it to hit financial accounting as it is a movement between 2 companies and when u get stock from vendor for Plant B, they will do an STO again so it should ideally balance out.

Another option which might not be a clean and optimum design: create a storage location in Plant A (say SLOCB to indicate storage location relevant for plant B). Make sure you mark SLOCB as not relevant for planning for MRP in Plant A. Now whenever u want to move stock from Plant A to Plant B, move the stock to SLOCB storage location in plant A. this way you will not hit accounting as it is only SLOC to SLOC transfer. But the issue with this design is that you cannot account for SLOCB inventory when looking for all the inventory for Plant B.

Try this and revert back.

Regards,

Swapnil

[Former Member]

Anyone can help on this? I am eagrly waiting for the solution.

Please help me out.

Regards