Intercompany trade scenario WIP Transfer
In case of WIP transfers, work in progress is transferred from one work center to another work center. Each work center is defined as an entity. Each entity belongs to a different internal financial entity. The shipping work center invoices the receiving work center, because ownership changes directly from one internal financial entity to another internal financial entity. Supported price origin: Cost-Plus (without markup).
For the intercompany trade order, the shipping work center is the selling entity and the receiving work center is the buying entity.
Business process
The WIP Transfer scenario is used in production processes:
- Job Shop Control production orders involving two operations related to work centers belonging to different financial entities.
- Assembly Control assembly orders involving two assembly lines related to work centers belonging to different financial entities.
In this scenario, invoicing or revenue and cost postings are based on actual costs. This cannot be modified.
Job Shop Control
A production order includes multiple operations carried out by different work centers. The production order is linked to a calculation office. The WIP Transfer scenario is applicable if an intercompany trade relationship is present between:
- The work centers linked to two successive operations in the production process
- The work center of the last operation and the calculation office of the production order
When an operation or an entire production order is reported complete, an intercompany trade order and the linked transaction lines are generated. The originating order is the warehousing order of transaction type WIP Transfer that transfers the semifinished goods or completed products between the work centers. In this scenario, related orders are not present.
In the Intercompany Trade Order Transaction Lines (tcitr3110m000) session, the production order is the purchase business object.
Assembly Control
In an assembly structure, assembly lines can be linked to different calculation offices represented by work centers. If an intercompany trade relationship is present between the work centers, the WIP Transfer scenario is applicable. The process to create the intercompany trade order and the transaction lines is similar to that of Job Shop Control. The warehousing WIP Transfer order is the originating order.