Third party order process

[Former Member]

HI SD Gurus,

I would like to know the process (mainly the list of documents), how is followed for Third party order processing in Indian scenerio.

When the vendor is supplying the goods to the customer, what are all the documents needs to be carried along with the consignment?

When the Business raising Invoice to customer, what are all the documents needs to be sent to customer?

In particularly, who will pay excise duty and sales tax etc,.

Expecting your valuable response.

In case, if you need more clarity, please feel free to ask me...

Regards,

Mani

[Former Member]

Hi Manivannan,

Maintain same material in your plant too with all J1ID settings like chapter id and excise rates etc.

When you bill the customer for same material(same part no) the system will pick the excise rates maintained in J1ID for that material.

who will pay excise duty and sales tax etc,.

Ultimately customer has to pay all excise duties and sales tax involved in it.

Thanks,

Swamy H P

[Former Member]

Hi Swamy & SD Gurus,

Let me explain more on my question.

In Third party order processing, Vendor is supplying the goods to Customer on behalf of Business. Here is my doubts :-

1) What are all the documents to be sent to Customer by the Vendor?

2) Who will pay the excise duty (Whether the Vendor or Business)? (as per my knowledge, Excise duty is on Manufacuruing)

3) Who will pay the Sales Tax? (to my knowledge Sales Tax is only at the time of Sales) - In this case, whether the sales tax is applicable or not

When the Business sends the Invocie to cutomer -

1) What are all the document will be sent to customer by Business?

2) When Business raises the Invoice to customer, how is Pricing , Excise duty, Sales Tax are calculated?

Here I don't like to know the setting in SAP (however this is later stage), at least, would like to know the business process...

Hope you understand the questions......

Thank you

Regards,

Mani

[Former Member]

Hi

here vendor raises the invoice and send to the company and not to the customer, here vendor invoice includes all excise duties and sales to be there.

when we send the invoice to the customer we will include all the excise duties and sales tax which was sent by the vendor,

customer pays the excise duty and sales tax depends on the region

company also pay the same to the vendor

regards

vardhan

[Former Member]

Hi Manivannan,

For better understanding refer this link

http://help.sap.com/erp2005_ehp_04/helpdata/EN/dd/560287545a11d1a7020000e829fd11/frameset.htm

Thanks,

Swamy H P

[Former Member]

Mannivanan,

Scenario 1

If the vendor ( is just a Dealer or Distributor)

1. The Vendor only delivers the goods to the customer.

2. Vendor will pass the invoice with price increase say 100 +10 to the company

3. The Company in return will pass the invoice to the customer with increased price and VAT/CST (depending on the region)

4. The customer has to pay for the amt invoiced

Scenario 2

If the vendor ( is inhouse manufacturing )

1. The Vendor pays the excise duty for the product

2. Vendor will send the goods to the customer

3. Vendor will raise invoice against company with sales tax

4. The Company in return will invoice the customer who has to pay the price + VAT/CST (depending on the region)

Regards

Sathya