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Intercompany scenario in manufacturing

We're in the manufacturing business with several companies in US and Mexico. As we roll out SAP at a Mexico location, we need to prorotype an intercompany scenario. Manufacturing of some of our products is started in the US and is completed in Mexico. We were hoping to use Intercompany functionality, but it seems that it is working only with finished goods. I.e. if we sell one product from US and one product from Mexico then it would work. But we sell one product, it's just manufactured in two locations.

We explored an option to enter 2 materials instead of one (IS and Mexico pieces separately), but this would mess up the reporting, require customer service re-training, etc.

In another company on a different SAP box we use the following process:

- sales order and production order are created in the US company

- subcontracting purchase order is created for Mexico company

- Mexico company creates their own sales order/delivery/invoice and completes their piece

- US company completes their delivery and invoice.

Since in this case US and Mexico companies will be in the same box, we were hoping to avoid implementing the same scenario because it involves many additional documents (POs, SOs, etc.).

Is there any way to utilize Intercompany functionality in our scenario? If not, is there any way to simplify the process described above?

We've done a lot of research and are at the end of our wits right now. Any suggestions would be appreciated.

Thank you.

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    Former Member
    Oct 20, 2011 at 04:05 PM

    Hi

    Manufacturing of some of our products is started in the US and is completed in Mexico.

    I understand that the manufacturing of the material will be partly done at the mexican plant and the balance will be done at the US plant to get the finished/final product....am I correct?

    Mexico company creates their own sales order/delivery/invoice and completes their piece

    - US company completes their delivery and invoice.

    Is there any activity inbetween the above two steps?

    Mexico company creates the SO/DO/Invoice on whom?

    Thanks,

    Ravi

    Edited by: Rob Burbank on Oct 20, 2011 3:18 PM

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    • Thank you, everyone, for your input.

      Shiva Ram, you were spot on. This indeed looks exactly like our scenario. We were too focused on the "intercompany" keyword. Now we have searched for the cross company subcontracting and found many informative posts. Thanks again, you just made my day!