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Former Member

Third party Process

Hi,gurus

I am having a doubt in which type of industry (Third party with shipping notification) and (Third party with out shipping notification) is used.I know these 2 process well.

Suresh

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2 Answers

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    Former Member
    Posted on Sep 28, 2007 at 02:18 AM

    It can be done for mainly mechanical Engineering Industry or a production house.But then it can be done for various other industries also.

    <b>LOGIC:</b>

    <u>Third Party with shipping notification</u> :Your customer orders products that are not produced by your company and are not kept in stock. The vendor sends the material directly to your customer.

    In the next step of the value chain, you receive a shipping notification from your vendor stating that the products have been shipped to your customer. You then bill your customer based on the quantity shipped as noted on the shipping notification.[ You do MIRO after billing]

    u]Third Party without shipping notification</u> :In this scenario, the vendor does not send a shipping notification. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document is only possible after entering the invoice from the vendor. [ You do MIRO before billing]

    Award points if helpful.

    Thanks

    Adi

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  • Posted on Sep 28, 2007 at 06:10 AM

    Hi..

    Widely it IS used in Engg & Consumer Durables...

    Third Party with shipping notification :You bill your customer based on the quantity shipped as noted on the shipping notification.You do MIRO after billing

    Third Party without shipping notification :The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document is only possible after entering the invoice from the vendor. You do MIRO before billing

    REWARD IF U FINDS THIS AS USEFUL...

    Regds

    MM

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