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Former Member

direct and indirect third party sales

Hi gurus,

please tell me what is direct third party sales and what is indirect third party sales?

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2 Answers

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    Former Member
    Feb 24, 2010 at 03:38 AM

    Hi,

    As far as my understanding

    Direct third party sales

    Meaning is that your vendor directly ship goods to your cutomer,here no delivery takeplace from your company

    Process :

    Sales order >> Purchase requisition >> P.O >> Invoice reciept from vendor >>> Invoice to customer woth refrance to sales order

    Indirect Third party sales

    Meaning is that here vendor ship material to your company and then from your company you ship to customer

    Process :

    Sales order >> Purchase requisition >> P.O >> Goods Reciepts >> Outbound delivery with refrance to order >> invoice with refrance to delivery

    Hope you understand

    Kapil

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    Former Member
    Feb 24, 2010 at 04:17 AM

    Hi Sunil,

    In a direct third party sales, You ask your vendor to shipped the goods directly to your customer then vendor will invoice you and then you invoice your customer.

    In some case, company create a dummy delivery and then invoice the customer

    In the indirect third party sale, you get the gooods from your vendor --> you pay the vendor --> then you will deliver the goods --> and then bill the customer.

    Hope this helps,

    Regards,

    MT

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