New business requirement

[rajiv_mahajan]

Our client wants to purhcase raw material in bulk for gorup companies also in order to save cost. In current system the material is defined as raw material.

for example if we purchase 100 pc. out of that use 50 pc for production and convert 50 from raw material to trading goods(Material to material transfer) and sell that to the group companies. Is this the correct way?

Regarding selling to the group companies follow the standard SD process?? Please suggest.

Rajiv

[Former Member · Accepted solution]

You can do whatever you want if Raw material is your asset if not then you need to purchase it then do whatever you can. Many companies do like if the Raw material lying in warehouse waste instead of scrap it they sell those companies who can use it .

[rajiv_mahajan]

Thanks Qureshi.