Setting up sales order to credit a vendor

[Former Member]

Hi. I have a new process request that I'm not sure how to fulfill...

We will be selling product to a customer. A third party is rendering a standard service (same charge) for every delivery to that customer.

Is there a way to structure the sales order or delivery (conditions, etc...) so that the 3rd party is credited for his efforts?

Sorry if this is a basic question - most of my background is PP.

Thanks!

[Former Member]

Hi,

You can create him as a Partner Function " Forwarding agent" and include in all the relevant sales orders at the header level. And you can create a new condition type include it in the pricing procedure without affecting the other conditions and assign a separate account key if you want to pass these expenses to a separate GL.

With these you can credit the Forwarding Agent with the cost of the work he is taking up and also have a track the expenses incurred for this activity.

[Former Member]

Does the pricing condition cause postings only to the general GL Account, or to some account that is also linked to the vendor? In other words, does the vendor's account get a credit automatically that can be offset by a payment to him? Or do we need to do manual journal entries?

[Lakshmipathi]

does the vendor's account get a credit automatically

As and when you generate SD documents, there will be a corresponding credit entry for that vendor but it will not knock off automatically.

do we need to do manual journal entries?

Yes

thanks

G. Lakshmipathi

[sreenivas_bhamidipati]

Forwarding Agent is a vendor in SAP SD. what exactly the vendor is doing in this scenario. Is it installation? Are collecting the servicce charges seperately for the service of vendor from customer.

Or

Is the Material selling price is inclusive of the service of vendor.

Clarify a bit more, so some body can answer.

[Former Member]

The 3rd party agent is breaking the product down from rail cars, storing it, and then packing into truck loads to go to a single customer (there is only one destination for all these trucks). We'll negotiate so that we pay them for a fixed fee per truck load sent to that customer.

So yes, forwarding agent seems to be an accurate description.