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How to manage Outsourced inspection fee in Purchase Order

Dear All

We have a specific business scenario, delivery 100EA material M1 to supply for quality inspection, and goods receipt 80EA with good quality.

and we pay supply 2USD per EA, total 2* 100 = 200 USD.

the key point is we sent out 100 EA, and receive 80 EA, and pay according to 100 EA.

Now, we are using subcontracting to meet the requirements, deliver M1 100EA, and received good quality M2 80 EA, for the logistics part is perfect.

But I confused about the payment, we received only 80EA, how to pay for supply 2*100EA. the unit price 2USD per EA is fixed, not allowed to change.

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2 Answers

  • Jul 26, 2017 at 08:59 AM

    Dear Jurgen,

    It's not allowed a user to change the unit price till the PO has been approved.

    No one knows how many good quantity products will be returned. maybe 100EA, 90EA, or 80EA.

    the inspection fee is based on the quantity that sent to a supplier.

    you propose me to do settle the payment variance in invoice verification. it's a good practice. but one more thing, the price variance tolerance

    will be the bottleneck faced to this business scenario.

    could you advise an alternative solution?


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  • Jul 25, 2017 at 10:54 PM

    you restrict the solutions and yourself by telling "the unit price ... not allowed to change." It would be better to explain why such a ridiculous rule is in place if it does not allow you to post the value with the GR as you need it.

    You know that the price is proportionally adjusted if you receive less than ordered, so you have to have a price per 80 and not per 100 in your PO.

    By the way, the payment is done for the invoice which is presented by your vendor and he certainly gives you a bill for 100, this should make you less headaches than your material valuation and the differences that you post with a lower receipt and and an invoice for a different quantity.

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