Third Party billing, stock in our possesion

[Former Member]

Hello Guru's,

We will implement third party billing, but in our case the stock will be stored by us, not a third party company.

Also we will be purchasing the product and will be billed accordingly but... we will be billing on their behalf.

Don't ask me what is the reason at a user level, I guess it's a branding issue.

The point is, do you think what follows will be a good way to implement the solution?:

User's requirement:

We Store the product, we are billed for it, when we sell it it has to be billed on a different bill than any other regular products, on the bill it must show "billed on behalf of XXX company".

Solution:

We add a whole new sales circuit, with new sale document types: anyway the bill will only contain third party materials, it won't contain positions for our own products.

We restrict the third party product at a MM master records so it's not possible to make documents for own AND third party materials, even billing.

Advises? Ideas? Questions?

Do you think this is a good solution for the scenario, taking in account it will not be the regular third party sales process?

Thank you in advance my guru's!

Regards,

Lionel.

[Lakshmipathi]

We Store the product, we are billed for it

Here I am not clear whether you procure for other company and pay on their behalf.

Nevertheless, it seems it is like a trading scenario where you buy a material from the market and sell it to another market. In fact, you can also differentiate in material master with material type HAWA. If you are interested in this process, search in google for documentation.

thanks

G. Lakshmipathi

[Former Member]

We purchase the material, and we receive a bill for it.

I got the news yesterfay that we have the items in our possesion, but once we sell it, that is when we are billed by the product provider.

Thank you

[Former Member]

Lionel

The moot point is ' Is it your company's sale?' and 'should this sale be counted into your company's income or not?'. I am guessing it is not (your income).

You are buying it, you are paying for it ( i am assuming because you said 'we are billed for it'), you are storing it and selling it, but only the invoice must show "billed on behalf of XXX company".

If it is not your company (code) income, then I suggest you handle it as Inter-company business. Add a co code, Sales area, plant for the comany on whose behalf you are billing. Let that company receive the order from customer with your plant as delivering plant , then you send the material to customer. Bill them for inter-company transaction and let them bill the ultimate customer. You can use condition type PI01 and make it as close to zero as possible to avoid any real charge to them for the material. Standard Intercompany Sales Processing .

As you rightly mentioned also need a material master data field like material group or status so that you don't sell this from your comapny.

If it is your income and you want just to indicate differently ( I doubt if it is legal), then you just use standard text to print " "billed on behalf of XXX company".

Hope this helps and others will pitch in too.

[Former Member]

It actually helps a lot as a tip, taking in account that it's not a standard procedure, and besides that if one user requested it, for sure some other will.

This is a company located in Argentina, by the way. (I'm just writing it in case some other Argentinian colleague does a search about this).

Thank you Chandrasekhar.

Regards,

Lionel.