Intercompany order fulfillment with 100% customer-supplied (entrusted) raw material

Hi ​@MALIPL 

I was also thinking outsourcing functionality for this issue. Cursor also suggested a detail plan. Please have a look.

Yes — this is toll / contract manufacturing with entrusted (customer-owned) materials, not a normal inter-site stock transfer. In IFS Cloud the pieces that fit are Part Ownership = Customer Owned at Site B, plus No Charge outsourcing (or an equivalent customer-owned shop-order flow) so Site B never takes ownership of the raw material.

Recommended pattern

Treat Site B as a manufacturing supplier to Site A, not as a sister warehouse buying the BOM.

End customer

↑ Customer Order (Site A)

Site A (PL, Co A) --PO for FG + No Charge components--> Site B (BG, Co B)

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owns RM Customer Owned stock

ships RM free of charge Shop Order (Customer Owned)

receives FG / pays only for service returns FG to A

1. Master data (cross-company)

• Register Company A / Site A as a Customer of Company B (and Site B as a Supplier of Company A).
• Link supplier ↔ customer (Supplier → Customer No).
• On Site A: Purchase Component Method = Customer Order (needed for charge/no-charge components).
• Parts exist on both sites; FG is a purchase part on A and a manufactured part on B.

2. Materials stay Site A’s property

Use outsourcing with No Charge components (Charge/No Charge in Outsourcing):

• Site A raises a PO to Site B for the finished good.
• Attach BOM components as No Charge (not charged to the supplier).
• On release, IFS creates a customer order to ship those components from A → B.
• Postings on A: issue to M15 WIP at supplier (not a sale of material).
• Site B must not receive those parts as Company Owned inventory to buy/consume as its own stock.

At Site B, hold and consume them as Customer Owned, owner = Site A’s customer ID (Part Ownership):

• Zero inventory value to Company B
• No inventory valuation / purchase of that material
• Shop order material lines and (usually) header = Customer Owned, same owning customer

3. Production at Site B

• Shop order for the FG with Ownership = Customer Owned, Owner = Site A.
• Issue only customer-owned stock belonging to that owner.
• Receive FG as Customer Owned (still Site A’s property), then return/ship to Site A (or drop-ship if that is the commercial model).
• Site B invoices manufacturing service only (labor/overhead), not the entrusted RM.

4. External customer order at Site A

• Register the end-customer CO on Site A as usual.
• Supply the FG from Site A after receipt from the outsourcing PO (or peg CO ↔ PO if you use that process).
• Do not rely on standard Int Purch Trans / Distribution Order to move the raw materials as customer-owned stock — IFS does not support moving externally owned stock via inter-site CO/PO transit. Community guidance for customer-owned moves is Transport Task / Move Inventory Part, which is awkward across companies; outsourcing/no-charge is the designed cross-company path.

What to avoid

Practical caveats

• Planning: customer-owned demand/supply is not MRP-planned — plan RM at A and capacity at B manually (or with separate processes).
• Finance/tax: PL↔BG still needs correct Intrastat/customs docs and intercompany invoicing for the service; validate VAT with finance even on no-charge shipments.
• Same owning customer on one shop order for all customer-owned lines.

Bottom line: Model Site B as an outsourced manufacturer. Site A ships RM No Charge, Site B tracks/produces under Customer Owned (owner = Site A), and Site A sells the FG to the end customer. That keeps legal ownership with Site A and stops Site B from purchasing the material.

If you share whether Site B should invoice only a service fee or a full FG price (ex-material), I can outline the exact order types and ownership settings line-by-line for that commercial model.

regards,

Piyal