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Former Member

Third Party Sales Senerio

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Company will not produce Material - A, They procure from 3rd party, one customer ordered 100 Nos of MAterial A, and raised PR and P.O for 100 Nos, and invoiced the customer for 100 Nos, and customer paid for 100 Nos, after noticed that only 95 Nos were deliveried to customer, company dont wnat to canel the invoice or give the credit note to the customer, how can we do settlement with customer and wat is the satus of Invertory or material of 5 nos and material Accounting.

Please suggest.

Regards

Ramki

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5 Answers

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    Former Member
    Aug 28, 2008 at 01:48 PM

    Hi,

    Any how for third party sales you are not maintaining any stock in your plant. So you need not to bother about material document. U just do statistical goods reciept in your plant that will show the correct quantity wrf to purchage order...

    U just go and direclty raise the credit memo to customer..

    Regards

    sankar

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  • Aug 28, 2008 at 01:52 PM

    Hi,

    First thing, the company should check the invoice sent by the 3rd party. If it carries values for only 95 quantities, then apparently, 5 quantity is still open. That means the company issued PO is still open for 5 quantities.

    So the company can advice the third party to delivery the remaining 5 quantities to the customer, based on the actual 95 quantities only delivered.

    Regards,

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    Former Member
    Aug 28, 2008 at 02:16 PM

    Hi,

    When 3rd party delivers material to customer it sends Gr for verification which we verrify through MIGO.

    And for account settlement to 3rd Party we have transaction MIRO.

    If you dont want to raise credit Memo to customer then ask ur Vendor to deliver remaining items as ur order is still open..So u can repeat the same process of MIGO & MIRO of remaining 5 items.

    Regards

    Amit Gupta

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    • Hi,

      1) If vendor's invoice also carries 100, but goods is delivered less, then it is mistake on the vendor's part. This means it is his responsibility to deliver the remaining quantity. The company need not do any other thing.

      2) The normal process is when vendor delivers the quantity to the customer, the vendor issues invoice to the company. Based on this invoice only, the company issues invoice to the customer. So this scenario is the normal setting.

      Regards

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    Former Member
    Aug 28, 2008 at 07:36 PM

    Hi RAM KI !!!!!

    Ur Third party process is normal process but only u r saying if any mistake from ur vendor end , how u will make setting.....

    U check in ur item category TAS.....

    F- order related billing based on invoice received.

    see u can make this setting to check the MIRO & based on that u will bill ur customer.

    Migo is only statistical.... for the record purpose... & u will not maintain the inventory for that TAS item category.

    U can billed 95 qty if Miro is 95 qty.

    U can billed 100 if miro was 100 qty.

    If any mistake from ur Vendor side then he has to deliver the 5 qty & then the problem will solve

    Or else u have to raise a Credit Memo to ur customer since u over billed him for 5 qty.

    Raise a debit memo to ur Vendor for 5 qty if u paid ur vendor for 100 qty.

    hope it will help u

    regards

    Dibya

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    Former Member
    Nov 21, 2009 at 08:16 AM

    Thanks

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