Thanks for the answer, Yes I am aware of that. So Company B actually uses manual & standard costing inventory valuation, in other words, they didn't record any stock valuation, since they are a subcon, they only record service for manufacturing in their financial postings.

And also that is why Company A uses Subcontracting route in the PO, where the component will ends up in Production Location (Inventory Loss) and the finished will be received in the stock.

The problem is, when I process Resupply Vendor in Company A subcon process, they only move it to Subcon location, and move it to production location when Company A receive the Finished Goods. Is there a way that the resupply to vendor (In Company A PO) triggers a receipt in Company B? since the receipt in Company B only records the stock (ignores the financial postings), at least to help process the Manufacture Order components?

Thanks!

Couple of points to consider here.

a. Subcon location is Company A's internal location, while it is so for valuation purpose only it is not accessible from company B
b. MO is in company A which means even if the raw material is received in company B a route would need to be defined for raw material to be consumed in Company A.

Your need is for a receipt operation in Company B, which could be accomplished by
- Manually creating receipt operation in Company B and receiving as consignee stock (no valuation but physical tracking in company B). As per company A, stock resides in Internal subcon location and is replicated in company B
OR automated through routes - From Company A's subcon location define inventory route (maybe push from subcon to company B via inter-company transit Or modify subcontract route to multi-step). Product no longer in company A and would be valued in company B.

For MO the component location would have be company A's locations, in either of the above cases the raw materials in Company B would need to be routed to company A's location for consumption.

Thinking aloud here, possibly an alternate process could be to have MO in company B, with raw material replenishment from Company A's stock via intercompany transfer. Would need to evaluate the overall valuation impact.

Further to the comments above was able to test to validate that consignee stock can be used in MO.. ie Company A stock can be used in Company B MO.

It seems possible to have your business flow with conventional intercompany transfers without having to use subcontract route

Thanks for the reference, I have seen those and still couldn't figure out the best practice for this case