Automating Work Order for Intercompany Purchase Orders

The Purchasing team can fulfill an item request either by acquiring items directly from an external supplier or by obtaining them from another Formulatrix company through an intercompany Purchase Order (PO).

Intercompany purchasing is often preferred when it provides a more effective solution than buying directly from a supplier. The Purchasing team may choose to pursue this option in the following situations:

• The required items are already available in another company’s warehouse.

• Purchasing directly from the supplier would require meeting a Minimum Order Quantity (MOQ) that exceeds the actual demand.

• Obtaining the items from another company allows the requester to receive them sooner.

Fulfilling an intercompany PO requires the supplier company to have a Work Order (WO) to issue the requested items from the warehouse before they can be shipped to the requester, as mandated by bonded zone regulations. TIGA automates this WO creation to simplify the process. Once an intercompany PO is sent, TIGA generates the corresponding WO intercompany, adds Work Order Line Items (WOLIs) based on available stock, and notifies the relevant teams to proceed.

Configure Automatic Work Order Creation

You can enable automatic Work Order (WO) intercompany creation while creating a new Purchase Order (PO) or editing an existing PO with a status of Draft, Multi, or Revised.

Prerequisites:

• You must be a member of the “Purchasing” group.

• PO is in Draft, Multi, or Revised status if you are editing an existing record.

• The Purchase Order Type is Inventory.

• The PO is not marked as Sub Contract.

• The supplier you are ordering from is marked as Intercompany Status in the Suppliers table, with the Company field filled in.

  Note

  This allows TIGA to identify which company the supplier belongs to and use this to populate the WO intercompany with the correct details.

• A Supplier Recipient Mapping record already exists for the selected supplier.

  Note

  Supplier Recipient Mapping links an intercompany supplier to the recipient warehouse on the buyer company’s side to determine which warehouse will receive the items. If no mapping exists for the selected supplier, contact the “Purchasing Manager” group members to create one before continuing.

  

  Supplier Recipient Mapping Record

To configure automatic work order creation:

1. Open the Purchase Orders table in the Bonded Zone application.

2. Add a new record or edit an existing one with Draft, Multi, or Revised status.

3. In the Supplier section, enter the Supplier ID of the supplier you are ordering from. Ensure that the supplier has the Intercompany Status checked.

   

   Supplier with Intercompany Status Checked

4. Check the Auto Create WO Intercompany checkbox.

   

   Auto Create WO Intercompany Checkbox

5. Fill out any remaining information necessary for the PO.

6. Create or Update the record.

Post Condition:

TIGA automatically creates or updates a record in the Purchase Orders table.

Important

• If you select a Supplier ID that is not set up with Intercompany Status checked, TIGA shows an error and asks you to choose a correct one.

• If you check both Sub Contract and Auto Create WO Intercompany options, or select PO Type Non Inventory along with Auto Create WO Intercompany, TIGA shows an error and does not save the record until the issues are resolved.

• If you edit an existing PO that is not in Draft, Multi, or Revised status, the Auto Create WO Intercompany checkbox is disabled and cannot be modified.

Note

To continue the process, submit the PO for approval. Once approved, the PO status changes to Approved, and you can then set it to Sent. See Approving or Rejecting Purchase Orders for the full approval process.

Start Automatic Work Order Creation

After the Purchase Order (PO) has completed the approval process, members of the “Purchasing” group can initiate the automation by updating the PO status to Sent.

Note

• Purchasing can update the status for a single PO or for multiple POs simultaneously using Bulk Update.

• TIGA displays the shipment confirmation dialog after the PO status is updated to Sent. Creating the shipment is optional and does not affect the automatic WO creation process.

TIGA then automatically performs the following:

• Updates the PO status to Sent and sends a “PO SENT” email notification.

• Checks the available stock in the supplier company’s warehouse for each Purchase Order Line Item (POLI), excluding stock in the Scraps, Subcont, and Finished Goods warehouses.

• Generates a Work Order record for intercompany with Open to Buy status, populated with:

  • Job ID with the format “Intercompany_PO#[PO Number]”

  • Supplier company

  • Description

  • The person who sets the PO to Sent, assigned as both the Requester and Approver of the WO.

• Creates Work Order Line Items (WOLI) based on available stock:

  Inventory Availability	WO Created	WOLIs Created	Notification
  All Stock Is Available	Yes	Yes, for every POLI with the requested quantity.	Email notification of “Intercompany”
  Partial Stock Is Available	Yes	Yes, for POLIs with the available quantity. No, for POLIs with no available inventory	Email notification of “Intercompany” with the list of POLIs that could not be fulfilled. The Purchasing team can then decide whether to handle those POLIs in a separate PO or :ref:`cancel them <Canceling_Purchase_Orders>`_.
  No Stock Is Available	No	No	A dialog box informing the user that the PO status was updated to Sent, but no WO intercompany was created because the requested items are out of stock. No WO Created Notification Sends a “[NO WO CREATED]” email notification to the WO Requester and the Purchasing team. No WO Created Email Notification Purchasing should review the stock situation and take the necessary follow-up actions.

• Populates the WO Intercompany ID field on the Purchase Order with the ID of the newly created WO.

• Updates the On Order quantity in the Item Inventories table of the supplier’s warehouse.

• Updates the In Stock, Committed, and Available quantities in the Item Inventory Summaries table of the supplier’s warehouse.

• Sends an email notification to the WO Requester, the Warehouse, Purchasing, Accounting, and Exim teams. The email includes the PO number, WO number, and processing instructions.

  

  Email Notification of WO Intercompany

  Note

  If some items are unavailable, the email also lists the Item ID, Item Description, Available Stock quantity, POLI Quantity, and WOLI Quantity in WO Interco for each affected item.

  

  Email Notification of WO Intercompany with Unavailable Items

At this point, the Purchasing team’s role in this process is finished. The next process is handled by the supplier company’s Warehouse team, who will create the Issued Out transaction for the WO and the Initial Issued In transaction to transfer the requested items to the Finished Goods warehouse.