Hello!
I will try to describe our work process in the business:
We have a material which is a final assembly that needs to go through sterilization process, we will call it X (capital letter). it can be ordered from two ways:
1. from vendor 1, and in the BOM we have a sub assembly that the final material consumes. the sterilization process is the responsibility of that vendor.
2. we can order a non-sterile final assembly, lets call it x (not capital) and it can come from two different vendors. now it this route we need to take care of the sterilization.
the problem is that we need to issue a PO to the sterilization vendor for a sterilation run only.
Now the question is how to do that in a clean way.
Our IT suggested a way but we don't feel convenient with it and it goes as follows:
For procurement via method 2, open a sub-contract PO to the sterilization vendor for the X material (the sterile final assy). the cost of of the sterilization run will be embodied in each unit of X material ordered (run cost divided by the quantity of X ordered) and when doing GR the x material will be consumed by the X material.
do you know of any other way of paying for sterilization process done on a material and that making it saleable.
i hope the procees is clear enough.
thank you