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Triangular Invoicing

Feb 14, 2017 at 04:10 PM

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Business Process Scenario:

We have two manufacturing plants and 7 Branches. All the branches are defined as plants and in turn linked with the profit centre.

AA Manufacturing Plant 1

BB Manufacturing Plant 2

CC Branch defined as Plant

Sales organization is same for all the plants.

Material codes are available only in manufacturing plants. Not extended to the Branches.

Branch receives the order from customer for manufacturing and supply of material from manufacturing plant 1. We don’t want to do any stock transport process and Depot sales process, since in this both cases material required to be in plant CC.

The order received by branch will be manufactured in plant AA and delivered and invoiced to the customer directly by the plant but to have a proper profit centre account (to have P&L and Balance Sheet for all the plants) need to book the cost and revenue in manufacturing plant (AA) as well as Branch (CC). There will be only one excise invoice processed at plant AA but system should create internal entries for branch CC.

Following are the questions

  • In which plant sales order will be created
  • How it is indicated that sales order is for branch CC and AA is manufacturing and supplying plant.
  • What configuration required to be done for such scenario?

Material “A” has a sales price of INR 1000 in sales order, Fixed Transfer Price of INR 800 and manufacturing cost is INR 600

The accounting entries should be passed upon processing billing document.

Entries In Plant AA

Cr Inventory 600

DrCOGS600

CrRevenue800(FTP)

Dr Customer A/C (Branch CC)800

Entries in Branch CC

Cr Vendor A/C (Plant AA)800

Dr COGS800(FTP)

Cr Revenue1000

Dr Customer A/C 1000

Thanks in Advance

Krishna

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Dear All,

Waiting for your Valuable feedback

Regards,

Krishna

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Sorry but this looks like fishing expedition for free consulting. What have you tried yourself so far?

Since there is mentioning of "excise invoice" and Depot I'm guessing this is specific to India. You might want to clarify and provide more information.

Obviously the sales order is usually placed for the plant that will deliver the goods. How you sort out manufacturing and finances with "branch" is the whole other story. And sending goods from one plant to another usually requires some kind of a document.

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1 Answer

Krishna Singh Feb 16, 2017 at 09:55 AM
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Dear All,

Waiting for your feed back, has any 1 come across such scenario.

Pls help.

Regards,

Krishna

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Former Member

Hi Krishna,

I've the same requirements. Did you come up with a solution?

Regards,

Amine

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