Aarto
Reputable Poster
Hi all!
This company has manufacturing sites in US and in Europe.
Some components are owned by the European company but shipped directly from supplier to US and the actual manufacturing process takes place in US.
When the process is complete, the European company sells the finished product to US customer
We have suggested to use outside operations for this but it is a bit work-intensive
1. Create purchase order for component in the Europan branch with the actual costprice on PO
2. Create 0-cost purchase order in US (componen7 07-cost in US is zero) to also get the component stock to US branch
3. Raise work order in US with components in US branch only
4. Process the work order in normal fashion in US branch
4. Sell product from US company to the european company (price = labour hours + US-owned components cost)
5. Raise outside operations work order in European company with the US company as supplier for the *OP OX purchase order
6. Issue the component in European branch to the work order + receive the OX order against WO
7. Complete outside ops work order in Europe
8. Sell the product to US customer (reduces stock in European branch)
The customer would like to automate this process but i fear that automating outside operations process is going to be a very tedious task and prone to errors due to the setup requirements + exceptions (reversal of completions and issues etc.
So we are investigating if we can either
1. Only have the component in the european branch and have US branch issue the component from the european branch
2. See how the intercompany invoicing could be handled using the above
3. How to create inventory of the finished goods in the european branch or possibly use a non-stock sales, maybe direct ship order to sell it to the customer
I would like to hear from anyone who had similar requirements?
With kind regards
Aarto
This company has manufacturing sites in US and in Europe.
Some components are owned by the European company but shipped directly from supplier to US and the actual manufacturing process takes place in US.
When the process is complete, the European company sells the finished product to US customer
We have suggested to use outside operations for this but it is a bit work-intensive
1. Create purchase order for component in the Europan branch with the actual costprice on PO
2. Create 0-cost purchase order in US (componen7 07-cost in US is zero) to also get the component stock to US branch
3. Raise work order in US with components in US branch only
4. Process the work order in normal fashion in US branch
4. Sell product from US company to the european company (price = labour hours + US-owned components cost)
5. Raise outside operations work order in European company with the US company as supplier for the *OP OX purchase order
6. Issue the component in European branch to the work order + receive the OX order against WO
7. Complete outside ops work order in Europe
8. Sell the product to US customer (reduces stock in European branch)
The customer would like to automate this process but i fear that automating outside operations process is going to be a very tedious task and prone to errors due to the setup requirements + exceptions (reversal of completions and issues etc.
So we are investigating if we can either
1. Only have the component in the european branch and have US branch issue the component from the european branch
2. See how the intercompany invoicing could be handled using the above
3. How to create inventory of the finished goods in the european branch or possibly use a non-stock sales, maybe direct ship order to sell it to the customer
I would like to hear from anyone who had similar requirements?
With kind regards
Aarto