Hi @pramodka46,

You can use the Purchase order outsourcing functionality to handle this scenario

Solution:

1. Create a Remote Warehouse and connect the supplier A to the remote warehouse (this can be done by connecting supplier in the address tab of remote warehouse). Apply the availability control on this warehouse location such that stock cannot be issued or reserved from this location 
2. Create a normal purchase order to supplier A
3. Create a outsourcing purchase order to supplier B (you need to create a product structure for the part and add the part supplied by supplier A as component. Please make sure to check Backflush for Purchased component and enter remote warehouse location in Reserve/Issue from loc). This will automatically add the part in supplier material screen. 
4.  Receive the purchase order from supplier A in to remote warehouse of supplier B
5. Later, receive the purchase order from supplier B, this will automatically backflush the component which are delivered from supplier A and stored at remote warehouse of supplier B. 
6. You can have the clear details of how much stock left out from the supplier A supplies by checking the inventory part in stock details for remote warehouse location. Also, this stock will not be used for any other purpose other than backflushing as they are blocked by availability control ID. Only while backflushing this availability ID controls are ignored  

Hope this helps!!

Regards,

Mithun K V

@pramodka46 

I think a decisive element in  this flow is how you define the ownership of goods when they are with supplier B. 

Also, what is the nature of the supplier B’s location? Is it an internal site? Same company or different company?

And at which point are you planning to invoice your suppliers? Is it only supplier A you are invoicing? 

Additionally, if you have no need to separately raise a PO for supplier B, a simple intersite flow can be used.