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What is the simplest way to transfer/return Intercompany Orders.


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Background: Two Sites belong to the same company. Site A supplies parts (including configured parts) to Site B. When Site B reports a defective part, Site B must complete an MRB case, physically inform Site A, and Site A must complete a RMA case.

Problem: Site B has to create a new PO (and inform Site A) AND site A can’t issue credit since both sites are under the same company. Both sites, essentially, must start from scratch and perform much “foot work” outside of IFS.

Request: What is the simplest process to transfer parts between sites AND return parts while cataloging MRB/RMA cases?

Notes:

  1. Distribution orders aren’t viable since parts are often configurable.
  2. Solution must drive demand like a customer order.
  3. Solution must (of course) be traceable in IFS.
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Best answer by ShawnBerk 8 July 2022, 04:31

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Our solution doesn’t meet Note 2 of your list, but it is by far the simplest version and completely inside IFS (inventory transaction history, MRB, and notifications).

We use the MRB case at the start of the process to document the issue, however, we do not use an RMA, an additional PO, or bother with a credit.  How?  We do a straight inventory move back to the originating site and let them process it internally to decide how to handle it.  Because our costs are aligned and there is no need for profit relief, the inventory move is the simplest way to get the material back.  There is a special location setup in all sites for this purpose to move defective material.  That isn’t real demand in the IPAP sense, but if material is in that location, it is known to be defective from another site.

 

 

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@ShawnBerk Sounds viable. I’m keen to give this a try! I’ve made a list of procedures this process would follow. Are these the steps your team uses?

1.) Customer PO

2.) Customer Order

3.) Ship Order

4.) Register Arrival

5.) Receive into QA

6.) MRB Case

7.) Move Inventory (back to Sending Site)

8.) Move Inventory (back to Receiving Site)

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@tonybiagini 

 

Mostly….there are some variations depending on when the defect is discovered.

 

Steps 1-4 you’ve outlined are done for all intersite orders

Step 5 is done only for the first few deliveries of an item, once the item and process are validated, some go to just regular inspection without an MRB case, some go direct to inventory.  But at the start, yes they are held for MRB inspection.

Step 6 can be done as part of the receipt just to document inspection, it is also done at receipt if there is a problem. But this can also be step 1 of the process, that is the defect or problem isn’t noticed until much later in the process and the item is coming from inventory and not traceable back to the original receipt.  No matter when it is happens, the MRB case is the first step to document the problem.

Step 7, yes, this is the only transaction to get it back to the supply site

Step 8 - this one depends on a lot of factors and there can be lots of things done between steps 7 and 8.  Sometimes the part is found to be not repairable and is just scrapped at the supply site, that may be the final transaction.  There may not be a replacement sent back for it then as most of the parts are high volume and were replenished in an earlier shipment. Defects always lag behind.  If it was a one off part and not repairable, then a process to create a new one is initiated.  In this case, the part is made at the supply site on an internal shop order that is absorbed in whatever department caused the error, then moved back to the originating site when done without another receipt transaction.  Finally, if the part is repairable, it might be repaired on a repair shop order, again where the cost is absorbed in the supply site, then the repaired item is moved back to the demand site.  However you finish at step 8 will depend on your products and scenario.  There isn’t one right way here I don’t think for all scenarios..

 

 

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@ShawnBerk Thanks for the feedback, again! I’ll mark your response as the best answer. 

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