MIGO in 3rd party process

[Former Member]

Hello Experts,

In a dropshipment scenario, the Supplier will deliver the goods to the customer directly.

Then the seller does a MIRO for the invoice received from the supplier.

Then the seller does a MIGO goods receipt and then Goods Issue before Billing.

May I know why is this done? What goods is received and what is issued?

Or for the Seller, he does not need to process MIGO and Goods issue in 3rd party process?

regards

Pascal

[Former Member · Accepted solution]

Hi Pascal

In Third Part scenario, Goods Issue step will not be there at all. MIGO can be done and it is only logical (there is nophysical goods movement).

To do Billing document, MIGO or goods issue is not mandatory. It can be controlled in two ways

1. billing with reference to Sales Order, in this case as soon as sales order is saved, billing can be done.

2. billing with reference to Sales Order depending on the Invoice Verification (MIRO) for qty invoiced by vendor, in this case billing can be done once the MIRO is completed.

Regards,

Rajam

[Former Member · Accepted solution]

Dear Experts,

Thanks, I got the info from this thread:

Yes, I was confused as there were answers saying need to and one that said no need.

So, thanks for the clarification .

Cheers.

Pascal

[Former Member · Accepted solution]

Dear Rajam,

There are 2 ways to bill as in either

1. Seller can bill customer before invoice verification using invoice from vendor?

2. Seller waits for Wholesaler invoice Seller and then the Seller invoice the customer?

regards

Pascal

[Former Member · Accepted solution]

Yes Pacal,

You are right. The configuration setting is in the Item Category, that is billing relevance field.

F - Billing after invoice verification

B - Billing can be done once the Sales order is saved.

regards,

Rajam

[Shiva_Ram]

Then the seller does a MIGO goods receipt and then Goods Issue before Billing.

Seller does not need to do goods receipt in the third party sales process.

Regards,