direct and indirect third party sales

[Former Member]

Hi gurus,

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

[Former Member]

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

[Former Member]

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