This scenario packages covers two different subsidiary processes, the drop-shipment and the replenishment business scenario.
Intercompany Purchasing –(OE.HUB.IC.Purchasing) Sales from Central Stock (drop-shipment) is intended for large enterprises with several sales and distribution subsidiaries and branches in different locations or countries. SAP S/4 HANA runs at headquarters and SAP Business One runs in the subsidiary locations.
The subsidiaries or branches are mainly responsible for selling products that the headquarters produces centrally and stores at its location. Although a subsidiary does not have its own stock in its local warehouse, the stock it sells belongs, in terms of value, to the assets of the subsidiary.
The subsidiary orders the products from the S/4 HANA headquarters, whose central warehouse distributes the products directly to the subsidiary’s or branch’s end customer. Subsequently, the headquarters sends an invoice for the products to the subsidiary to account for inter-company revenue and inventory valuation. The subsidiary is responsible for sending invoices for the products to the end customer.
Intercompany Purchasing (Sales from Local Stock)
Intercompany Purchasing (OE.HUB.IC.Purchasing) - Sales from Local Stock (replenishment) is intended for large enterprises with several sales and distribution subsidiaries or branches in different locations or countries. The scenario assumes that the headquarters runs SAP S/4 HANA and the subsidiaries run SAP Business One as their ERP system. The subsidiaries keep their own stock in their local warehouses. The stock is part of the assets of the subsidiary.
The subsidiary sells the headquarters products from its local stock. The subsidiary replenishes its stock with orders to the S/4 HANA headquarters.
Next Step: Intercompany Purchasing Scenario Description in SAP S/4 HANA in Integration Hub