In the sales from local stock (replenishment order) scenario variant, the subsidiary keeps its own stock in its local warehouse. This stock is part of the subsidiary assets. The subsidiary sells headquarters products from its local stock. The subsidiary replenishes its stock with orders to the headquarters.
Sales from Local Stock Process Steps
The illustration above describes the sales from the local stock process (replenishment order to headquarters)
- To order products from the headquarters, the subsidiary responsible for purchasing creates a purchase order in SAP Business One. SAP Integration Framework 2.0 retrieves the purchase order and transfers it to SAP S/4 HANA.
By default, SAP Integration Framework 2.0 sends only new purchase orders to the headquarters. It does not send purchase order updates, because as soon as there is a sales order available in the headquarters SAP S/4 HANA, SAP S/4 HANA is the leading system in the scenario. Therefore, if any changes of a purchase order are necessary the subsidiary purchase manager calls the headquarter sales person to manage the changes manually.
- Based on the purchase order requirements, SAP S/4 HANA automatically creates a sales order start the sales process on headquarter side.
- To update the subsidiary purchase order, the headquarters sends back sales order information. The update includes the reference document number, products, quantities, delivery date, and pricing.
SAP S/4 HANA transfers the sales order number to the Vendor Reference Number field in the subsidiary purchase order. The subsidiary purchase order number and the headquarters sales order number are part of each document, which facilitates communication between the subsidiary buyer and the headquarters sales responsible.
- The headquarters creates the outbound delivery for the sales order in SAP S/4 HANA, and the products are shipped to the subsidiary location.
The headquarters posts the goods issue for the products and transfers the shipping notification information to the subsidiary.
- In SAP Business One, a draft goods receipt with reference to the corresponding purchase order is automatically created. The document number and the item number from the headquarters delivery are stored as references in the Vendor Reference Number field (on the document header level) and in the ExLineNo field (on the document item level).
Since the inbound delivery document is not available in SAP Business One, the draft goods receipt is a workaround in the systems. Usually, the outbound shipping notification from the headquarters creates an inbound shipping notification in the subsidiary system.
- When the goods reach the subsidiary, the person responsible for goods consignment creates the goods receipt document in the subsidiary. This goods receipt must reference the draft goods receipt that was automatically created in the previous step.
- The A/R invoice in SAP S/4 HANA completes the scenario. SAP Integration Framework 2.0 automatically creates an A/P invoice with reference to the corresponding goods receipt and goods receipt items in SAP Business One.
- The A/P invoice created in SAP Business One references the goods receipt manually created in the subsidiary. This reference is established using the purchase order reference of the goods receipt. The purchase order (document number) reference is transferred to the headquarters sales order and then finally to the A/R invoice by the SAP S/4 HANA document flow.
Next Step: Sales from Central Stock in SAP S/4 HANA in Integration Hub