Process intercompany purchase orders
Process the intercompany purchase order
To continue with the previous scenario, when you process the intercompany purchase order, the sales order in company USMF creates an intercompany purchase order in company DEMF. Then, it creates a basic internal intercompany order chain.
Intercompany reservations
When you create an intercompany purchase order line directly from an original sales order line, the system marks the two lines against one another. This marking controls the reservation, cost, and intercompany chain. You can view the marking on the sales order line by selecting Inventory > Marking.
Occasionally, you might want to only delete the purchase order and the intercompany sales order but not the original sales order. This scenario might happen if the customer still wants the items and you discover that only enough inventory is available to fulfill the requirement. In that situation, you no longer need to purchase the items.
Scenario
A customer orders three pieces of item 1101. Because the company has no available inventory to fulfill the order, you create an intercompany order with a non-direct delivery sales order so that the products pass through the warehouse. You create a purchase order and an intercompany sales order by using the vendor company. However, after creating the intercompany order, you check the warehouse and find a pallet of item 1100 that includes returned items from an incorrect order.
As a result, you must stop the intercompany order. In this scenario, you would remove the link between the original sales order line and then pick and pack the shipment for the original sales order line.
To remove the marking, select Inventory > Remove link on the original sales order line.
By removing the marking, you remove the intercompany order chain. Therefore, you can't restore the chain.
Serial and batch numbered items
Companies that use serial numbers or batch numbers to trace their items must also keep track of the serial numbers and batch numbers of picked items. The intercompany functionality automates the push/pull of serial numbers and batch numbers from one company to another.
When registering the batch numbers and serial numbers for the items on an intercompany sales order, you can set up the program to push these numbers automatically to the intercompany purchase order and original sales order.
You can set up relevant parameters on the Intercompany page for the sales order:
If you select the Batch number field on the Sales order policies page, the batch number syncs with the inventory transactions on the intercompany purchase order lines when you post the packing slip of the intercompany sales order.
If you select the Serial number field, the serial numbers sync with the inventory transactions on the intercompany purchase order lines when you post the packing slip of the intercompany sales order.
Similarly, you can pull batch and serial numbers from the intercompany purchase order. When registering the batch numbers and serial numbers for the items on an intercompany purchase order, you can set up the program to pull these numbers automatically from the intercompany sales order.
If you work with direct delivery, the system automatically generates the packing slip on the intercompany purchase order and the original sales order when you generate the packing slip on the intercompany sales order.
If you specify in the parameters that the system must sync batch number, serial number, and company information when you post the journal, the system automatically updates these values on the intercompany purchase order. If you select not to have the system sync these values, you must sync them manually.
The system doesn't print a packing slip when you use the Intercompany packing slip journal to update the intercompany purchase order. Instead, it changes the order status of the purchase order to Received.
Use the Synchronize batch/serial numbers function if the Batch number and Serial number parameters in the Synchronization field group of the action policies are cleared.
You can't invoice update intercompany purchase orders until you update at least one piece of the intercompany sales order. The intercompany purchase order takes its invoice reference number from the intercompany sales order. Though you can post a product receipt in the selling company before posting the packing slip in the buying company, we recommend that you do the product receipt only after you create sales packing slips.