Vendor payment in subcontracting

[Former Member]

Hi All,

In the subcontracting process how do we pay the vendors. What are the different options available. Do we pay the vendor wih respect to PO at the time of goods receipt.

I have good knowledge of Subcontracting pocess. I dont know the postings of financial documents.

Please advise.

Sanjay

[Former Member]

thanks

[kunal_ingale]

hi

the apyment can be done in any known way,its depends on the vendor and customer

u can pay advance /partial payment /some % in advance and then remaining after some days

u can use the payment terms to ur vendor and do the payment as per the key

regards

kunal

award if useful

[former_member529134]

In subcontracting process we are providing the materials for the subcontracting vendor. So the net price in the PO will be the amount vendor is charging for his service.There will be also a condition type for service tax if the service is taxable.

At the time of payment, the vendor invoice will be payed.

ie the vendor a/c will be credited and the external service a/c will be debited.

Hope it is clear now.

[Former Member]

Dear,

As per your mail you have good knowladge for subcontracting process.

So when you receive your material against purchase order.

At that time vendor send his bill of material and challan.

With reference of challan you have to create good receipt against purchase order with MIGO.

Then with reference of good receipt document, You have to create Vendor Invoice Verification with MIRO. You can take reference of challen number for miro.

At the time of invoice party will be credit and GR/IR will be debit.

Regards,

Mahesh Wagh

[Former Member]

Hi,

It is agreement between customer and vendor.

Either it can be advance payment against PO or payment after GR acceptance based on agreed payment terms with the vendor.

regards

suresh