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captive sales

Former Member
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hi,

I want know about "captive sales " please help me someone,

thanks

amit

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

Hi

Not a SAP term. This is simply a general business term meaning that the customer has no choice by to buy whatever from you. Examples of such situations are:

- Sales of materials from franchisor to franchisees. By contract the franchisee has no choice but to buy material from franchisor even if he can go to corner store and by same for cheaper.

- ( granted this is IS utility specific) sale of electricity to households or businesses, there is usually one electric commission that services a geographic area. It is not like if you don't like your electric utility you can buy it from someone else

Frank

Answers (1)

Answers (1)

Former Member
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Dear Amit,

Captive mean, When we are using a material in same company or we want to use this material to develop a new production and this material has store in FERT item. So you can't use this material directly, you need to invoice this material to your company and again it will receive in ROH, after that you can use this material in another BOM or anywhere in you company.

From

Ramesh Kumar