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Subcontracting + Third Party Sales?

Hi Gurus,

 

 

This is my 1st time to post and I'm looking forward to hearing and learning in this community.

 

The situation involves 2 of our physical plants (Plant A & B) in different locations with different POrgs/CoCode and a customer (Customer C).

 

1.  Plant A is required legally to purchase the materials from Plant B; Materials will only be transferred to Plant A's inventory "virtually/electronically" and not physically

a.      Shall I go for Subcontracting PO or InterCo STO?

b.      Is It advisable to have a storage location created in the system in Plant B

 

2.  Materials will not be shipped to Plant A Since it will be further processed in Plant B. Business wants a storage location physically in Plant B.

a.      How do we record the process of inventory management between plants

b.      Do we really need to setup a storage location or there is a simpler process

 

3.   3.  Plant A issues a toll packing order to Plant B, then this will trigger the production

 

4.   4.  Once Finish Good is done plant B will move stocks to Plant A virtually/electronically only and not physically.

 

5.   5.  Plant A creates sales order and invoice to customer C. Plant B will process delivery and issue the finish product to Customer C.

 

      What could be the best practice in SAP to map such business process?
Thank you very much for your comments and suggestions.

 

We are using SAP ECC 5


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