Does anyone have a example or can explain how to set up a manufactured part which is manufactured in different company (company has one site) and then transfered to another company (one site)?
We have a company 1 with one site where sales orders and shipments are made. The manufactured part final assembly is done at company 1. One component of the assembly is manufactured at company 1 with one site.
How do I set up the part so that sales order and assembly in company 1 create a demand to manufacture component at company 2 for company 1?
Without drawing a complete diagram, I would treat this like Company 2 is just a regular Supplier, unless you want to get into the whole Intercompany Trading setup - which could work depending on your structure. Regardless, it needs to be an arms-length transaction to satisfy the General Accounting rules of intercompany trading and stuff - ask your accounting team - especially if you have consolidations.
Company 1 is going to have to include a “purchased” part in the BOM that will automatically generate a PO for Company 2. Company 2 will produce it, and ship it/invoice it to Company 1. Company 1 will then pay Company 2 for it. Now that Company 1 has it in inventory, it can complete the assembly.
You’ll have to consider setting up lead times, inventory cost values, or receive it straight to the job - a whole bunch of things.
Thanks Mike! That was my idea also and we use intercompany anyway. But I thought there may be a better option or somehow define the parts so that these can be manufactured already at different companies.