Procure material for contractor and issuing material to contractor

[former_member609580]

Hi,

My client have a requirement, service po will be created for vendor A(Contractor) on Jan-2019.Usually vendor A (Contractor) will procure material and do the work in some cases Vendor A(Contractor) will go out of stock ,so he will request company to procure material from external vendor B.Company will procure and issue goods to vendor A(Contractor).

My queries is

1.How will issue the material to Vendor A(Contractor) and how the accounting entries will be?

2.Usually we pay the vendor full amount Rs.1000 as per service po. In case if we give material to vendor A (Contractor) we will debit Rs.200 from the service po total amount and pay the remaining amount to Vendor A.How we can debit Rs.200 from service po. My client do not want to raise any subsequent debit or credit for this process.They want system should automatically debit Rs.200 from service po total amount while doing miro(Invoice verification)to Vendor A(Contractor).

Vendor A(Contractor) Vendor B

Service Po Rs.1000 -

Material PO - Rs.200

[former_member609580]

Service entry sheet captured the component provided to vendor A reference details.Developed one Z Report to check the values.Based on the value customer will rise Subsequent credit or debit memo to vendor.Client accepted to create subsequent credit or debit memo in MIRO.

Thank you all for inputs.

Thanks and Reagrds,
Sangeetha Shanmugam

[ankurch]

Hi Sangeetha,

You can create a subcontractor PO for Vendor B, and deduct the appropriate amount while posting service entry sheet of Vendor A, in Subcon PO, mention the vendor code in Address tab of PO, so that vendor B direct send the goods to vendor A.

And make subsequent adjustment of values while posting the invoice of Vendor A

Thanks,

[former_member609580]

Hi Ankur,

thanks for your input.If I mention vendor A in delivery address tab,after doing GRN system stock showing as stock provided to vendor.I want to directly issue the stock to vendor A and don't want any stock in my plant.Kindly please give some other inputs.

Thanks and Regards,

Sangeetha Shanmugam

[Prasoon]

Hi,

If you procure from vendor B and deliver to vendor A, you can create a PO to vendor B with "SC Vendor" flag in delivery tab along with vendor A as SC vendor in the tab. Now when you do GRN for the PO, the stock will be posted to vendor A automatically with 101 O movement.

Now you need a subcon PO with vendor A, which will automatically consume the components and post the stock of the main item upon GRN. In the subcon PO, you can maintain the service cost alone.

Regards,

Prasoon

[former_member609580]

Hi Prasoon,

Thanks for your input.I tried the same but i have some doubts how we can create subcontract po for vendor A because we don't have any components,without components we can't create subcontract po.

1.I created a subcontract po and entered the same material in component and done GRN for the same.But the issue is stock to provided to vendor is consumed using 543 but main material showing in stock.We don't want the stock back once we issue the material to contractor(vendor A).

2.Then i tried one more method after doing the first vendor B Po-->GRN. Directly doing goods issue using 543 movement type.But system throughing some error as

Check table XEKPO: entry 00000 0000 does not exist

Message no. M7001

Kindly please give me some inputs.

Thanks and Regards,

Sangeetha Shanmugam

[Prasoon]

If you use the SC vendor flag in the PO as mentioned, system will post the GRN stock to vendor stock 101 O movement.

Regards,