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Former Member

High Sea Sales Scenario

Dear Experts,

Please let me know how to map following scenario...

The steps are as follows

1) The company will first place a purchase order on foreign vendor for materials (Qty : 15 Nos)

2) Once the material is in sea, the company will start finding the domestic customers and finalise a customer.

3) The entire quantity will arrive at the port...

4) The customer will pay the customs duty and clear the qty required by him (e.g 5 Nos)

5) The remaining qty will be cleared by the company.....

How to establish the link between sales order of customer and purchase order of vendor ?

How to account for the quantity.....(The company cannot show goods receipt for the entire quantity)

Waiting for your feedback....

regards,

Amol Gore

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4 Answers

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    Former Member
    Nov 15, 2010 at 05:25 AM

    Hi,

    this is to inform you that,

    1) The company will first place a purchase order on foreign vendor for materials (Qty : 15 Nos).

    ok, its procurement of materials whether its raw materials or finished goods.

    2) Once the material is in sea, the company will start finding the domestic customers and finalise a customer. 3) The entire quantity will arrive at the port. 4) The customer will pay the customs duty and clear the qty required by him (e.g 5 Nos).5) The remaining qty will be cleared by the company - understood.

    How to establish the link between sales order of customer and purchase order of vendor - Individual Purchase Order.

    How to account for the quantity.....(The company cannot show goods receipt for the entire quantity) - IPO

    for remaining 5 items - 3rd party sales.

    you asked for both scenarios in your question.

    regars,

    balajia

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    Former Member
    Nov 15, 2010 at 06:31 AM

    Sir,

    Thanks for your reply. Please give me clarification for following points.

    1. The goods are finished goods....

    1) Is it possible to establish a link between sales order of customer and the original P.O. (When the customer was not finalised?)

    2) Should we do the goods receipt for entire quantity or only for partial quantity ?

    regards,

    Amol Gore

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    • Former Member

      hi,

      1) Is it possible to establish a link between sales order of customer and the original P.O. (When the customer was not finalised?)

      1.A.through Schdeule Line category we can link it.

      2) Should we do the goods receipt for entire quantity or only for partial quantity ?

      2.A. in IPO you have to do it for entire quantity. in 3rd party sales you can do it for partial quantity.

      you can test the same in SBX and confirm.

      regards,

      balajia

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    Former Member
    Nov 15, 2010 at 07:00 AM

    Sir,

    Thanks for your immediate reply....

    I shall check in Sandbox as suggested by you...

    regards,

    Amol Gore

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    • The remaining qty will be cleared by the company

      In High Sea Sales process, the entire quantity should be on the the buyer and the liability should be created accordingly. The manufacturing plant is not suppose to take any partial quantity as it is a different scenario altogether. Check with Customs procedures thoroughly and then proceed.

      As you are aware, if you import any material and take the goods into the manufacturing plant, the plant is suppose to pay the duty and other statutory levies based on the Bill of Entry quantity indicated. So I dont think so, there is a provision as you narrated.

      thanks

      G. Lakshmipathi

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    Former Member
    May 13, 2011 at 11:18 AM

    Hi

    anybody have the flow chart of high sea sale or complete scenario

    thanks

    dalbir

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