Dear Experts,
I need clarification on Inter-Plant STOs. Business has two companies A (with Plant A) and B (with Plant B). At the moment company A manufactures and sells product to Company B. Company B re-sell these products to final customer. As such a material will have a different value in Company A and Company B. This model creates a lot of inter-company STOs, billing, FI documents, etc.
The proposal is to convert Company B (Plant B) into Plant C and link it to company A. I know this has financial and other enormous implications.
My question is only from a STO perspective. If I have a material valuated differently in two plants. Inter-plant STOs will generate FI documents?
Not sure how it will work if I have a different price in both plants.
Your feedback is truly appreciated,