Invoice entry - Third party sales order processing

[Former Member]

The process is below:

- Trading Company A, enters a sales order at its system.

- Production Company B, makes the delivery to the customer.

- An invoice with respect to the delivery is created from Company A to the cıstomer and another invoice is created from Company B to Company A.

The revenues are posted to the related accounts at both companies. Do we have to enter incoming invoice for the purchase activity to be posted at the related accounts at Company A (trading company) or is creating an invoice from company B to A enough?

[former_member184555 · Accepted solution]

Hi

This is the standard intercompany sales process and MIRO transaction is not required in this process.

Thanks,

Ravi

[reazuddin_md]

I have provided above input by pressuming that the both Companies are different legal entities & not part of the group comp.

[former_member184555]

As per the subject line and the message, Reazuddina and Shivaram's view could be correct. Looking at the terminology, I thought it is an intercompany sales process and I think my understanding might be wrong.

Thanks,

Ravi

[reazuddin_md]

- Production Company B, makes the delivery to the customer.

- An invoice with respect to the delivery is created from Company A

Comp A will not issue the goods, so you can not create invoice wrt: delivery, It should be wrt: Order.

Once MIRO is done in Comp A: ( which is sent by Comp B against the delivered goods), then only you can create invoice wrt:SO, which is controlled in billing relevance - F Order related billing status according to Invoice (MIRO) quantity.

Go through the threads: Third party order processing in the forum , will help you alot.

[Shiva_Ram]

Hi,

Yes, you need to post the incoming invoice in MIRO per standard. Then only company A can create invoice to customer. This is because, the incoming invoice will carry the details for acutal quantity delivered to the customer.

Regards,