Doubt in Third party process..

[Former Member]

Dear Friends...

I have one doubt that in Third party process when vendor send the material to customer at that time what will be the invoice value (Company Invoice to customer / Vendor invoice to Company) . If it is Company invoice to customer then how vendor will get that price.

[Former Member · Accepted solution]

Hi Swagat,

As per my understanding of your query, .. you are asking about the invoice value when our vendor deliver the goods to our customer & gives him the invoice. 

In Third party, Our vendor need not to give any price related document to our customer.

He Can just give a delivery note on the basis of which, customer can do the GR.

Vendor will send an invoice to us & we will send an invoice to our customer.

Hope this clarifies your query.

Thanks

Ajit.

[Former Member · Accepted solution]

Dear Friends..

I got the process. But i have a small doubt that when vendor will send the material physically at that time they have to give a invoice along with that material.so what will be that invoice value ?

[jpfriends079 · Accepted solution]

I believe you didn't followed what Ajit mentioned in his post. Please read that carefully. If you still have any query, just revert back.

[Former Member · Accepted solution]

Hi Swagat,

The vendor should not provide the invoice along with the material. He should only provide a delivery note. In case an invoice is required (for customs/checks) during material transport then that is an issue. Can you please confirm if this is the requirement or give us a more clear idea of the expected process?

Regards,

Som

[Former Member · Accepted solution]

Hi Swagat,

Please let us know if you have any further doubt on this process.

Thanks

Ajit.

[Former Member · Accepted solution]

Dear Friends Thank you for all of your support..

[Former Member · Accepted solution]

Dear Swagat,

Is your doubt is resolved?

Are you looking the case when the vendor is delivering the goods directly to customer instead of company what would be invoice document is sent along with delivery note since in India it is mandatory to carry the either commercial invoice or proforma invoice along with goods while delivering?

Thanks,

[Former Member · Accepted solution]

The vendor should not provide the invoice along with the material. He should only provide a delivery note. 

Som,

I do agree with the above case, in 3rd party sales, it happens like above

in case an invoice is required (for customs/checks) during material transport then that is an issue. Can you please confirm if this is the requirement

But what would be the case where as you mentioned above? how does the Vendor manage in this case?

Please give reply.

thanks,

[Former Member · Accepted solution]

Hi Surya,

We have not encountered this scenario specifically. But one option might be for the vendor to create and send the delivery note and also a copy of the invoice created for us along with the goods. The invoice copy must be used only for the customs checks. Only the delivery note must be provided to the customer along with the goods. We can then send the invoice separately to the customer. But this will be possible depending on the relationship between us and the vendor.

Currently I am not able to think of any other approach to this problem as all the other possible solutions will result in either the vendor finding out the price that we have quoted to the customer or the customer finding out the price that the vendor has quoted to us. If I can think of any other possible approach to this issue, then I will post it here.

Thank you,

Som

[prashant_sharma21]

If copy of the invoice is required by the government authorities while transit (check posts on the road) in this case Company can create the proforma invoice once the order is placed and send this proforma invoice to vendor and Vendor will forward same to Customer while transit (check posts on the road).

I believe I will fulfill your requirement.

Thanks

[Former Member]

HI JP

Here my Scenario is SO-Without PR generate PO-STATISTICAL GR (Optional) MIGO--->MIRO-->VF01.

Is it possible to Developthe scenario?

Please help me out in this scenario

Thanks,

Ranjith

[former_member182378]

Swagat,

I got the process. But i have a small doubt that when vendor will send the material physically at that time they have to give a invoice along with that material.so what will be that invoice value ?

anurag has explained nicely!

In 3rd party process; does you customer demand an invoice (copy of) along with the truck (or delivery)?

[former_member184555]

TW Typewriter wrote:

 In 3rd party process; does you customer demand an invoice (copy of) along with the truck (or delivery)?

It is not the customer, but the government authorities demand this invoice copy. They are not concerned whether it is a thrid party or a normal sales transaction.

[Former Member]

Hi Ravi,

You mean it is mandatory to carry the invoice copy along with goods even in 3rd party process right.

Especially in India, since it is mandatory to carry the invoice copy along with goods.If so will the vendor sends two invoices one for company(for us) and one more for company customer?

[former_member182378]

Ravi,

surya has asked a good question!

Your comment, government authorities demand a copy of the invoice - Is this shown during transit (check posts on the road) OR customer sends all the invoice copies to the govt authorities on a periodic basis (e.g. weekly)?

Would a proforma invoice do? An invoice without the net price details also do (in case of check posts on road)?

Thanks!

[former_member214036]

This message was moderated.

[former_member940383]

Dear Swagat,

I will not go into technical details (as it is already answered above by Ajit).  Let me answer it from a logical point.

Lets say, here is a supply chain:  Customer --> Company(you) --> Vendor

Lets assume some numbers:

Customer buys from company at $100

Company buys from vendor at $70

There by Company makes $30 margin.

Now, if the vendor passes the info i.e. $70 to the Customer. It is a serious problem, as the company does not want the Customer to know what is their margin.  Also, the Vendor does not have the pricing information ($100 - the customer has paid to Company) to pass it to the Customer.

As a general rule, neither the customer should have any knowledge of price between company and vendor, Nor does the Vendor should have any knowledge of price between Company and Customer.

ar.

[Former Member]

Dear Swagat

Vendor send  Invoice Receipt  to company,

Company send invoice to Customer , in below process flow

VA01--->PR-->PO--->STATISTICAL GR (Optional) MIGO--->MIRO-->VF01.

Thanks & Regards

Christin B

[former_member186385]

Hi Swagat,

If vendor sent Full Quantity of PO to customer, While doing MIRO the whole Net value will be billed by Vendor

With reference to MIRO value, customer invoice is created in VF01. This is controlled at item category under Billing Relevance F

assume that vendor has sent 10 Materials out of 20 to customer, in such cases we should get Confirmation  from customer with reference to which we will do statistical MIGO and simultaneously MIRO

Final billing to customer will always after MIRO

General Practice is creating a statistical MIGO

In summary, the process would be

VA01--->PR-->PO--->STATISTICAL GR (Optional)--->MIRO-->VF01

regards,

santosh

[Former Member]

Swagat Sahoo,

1. If it is a std. 3rd party sales process, then as soon as you save an Order, PR is automatically generated.
2. And based on that PR, PO will be created by MM and then GRN.
3. As JP rightly said that 3rd party sales Vendor raises inv to you and not to your customer.
4. So your purch deptt will do MIRO. Customer inv will be raised by you ONLY.

Thanks.

[jpfriends079]

Third party sales. Vendor only supplies material to customer. And the vendor raises invoice to you, not to customer. As like in normal purchasing process, when you receive invoice from your vendor. You do invoice receipt (IR) - MIRO in your system. Accordingly, your purchasing dept will make payment to vendor for that purchase based on that IR.

Thanks, JP