Managing Intercompany Consigned Inventory Ownership between Legal Entities in Oracle

Hi Everyone,

We have a requirement from our client where our manufacturing client currently operates under a single Legal Entity (LE) handling multiple product lines (A, B, C). Due to business reasons, they plan to split into two LEs under the same enterprise:

Before Split:

LE1 – Products A, B, C

After Split:

LE1 – Products A, B

LE2 – Product C

Currently, all products are manufactured in a single plant with shared inventory and workforce. Post-split, production for A, B, and C will continue in the same plant (under LE1).

Requirement:

• Products A and B should remain under LE1 ownership.
• Product C should reflect ownership under LE2, even though it is produced and stored in LE1’s plant/inventory organization.