Hypothetical Functional Scenarios

[abhinav_sharma05]

Dear Community,

This is an hypothetical situation:

Partner A is the Sold to Party.

Partner B is the Ship to Party

Partner C is the Bill to Party

Partner D is the Payer.

My question is if All 4 are different legal entities. Who will be the legal owner of the goods sold. And in case of any legal dispute with the supplier who will represent against the supplier in the court.

Also,

Partners are the same as above, what happen if the the Payer got bankrupt when the bill is due for payment.

Thanks,

[abhinav_sharma05]

Thank you for explaining, but friends i already understand what you have explained above.

My question is not limited within SAP terminology or capabilities, i want to know the real life implication if the below situation happens.

Let me explain you my query with an example:-

There is a company A, it manufacture turbines for electricity generation.

Company B is the local partner of the company A, but totally an independent legal identity.

Company C is newly found subsidiary of the company D which is building the power plant.

Company D is a multinational energy giant.

For this particular power project Company D through company C raised a PO to Company A for X number of turbines. But due to some reason Company A cannot supply them the turbines within the prescribed conditions.

Hence, the procured the turbines from company Z where, Company A will be the sold to party, B will be the ship to party, C will be the bill to party and D will be the payer.

The whole cycle is going to take 3 months to complete.

The turbine has been delivered to the B which is further transported to C with the bills.

The same day when C received the turbines D goes bankrupt.

Now who will pay to Z, when actually the turbines are with C, under the ownership of D.

I wish if you can make it more realistic/ complicated. You can have clues with the famous Enron case.

Please Note i am not looking for any SAP specific solution.

[former_member184080]

Hi Abhinav,

I am sure this will shouldn't come under SAP SD or infact SAP itself. Its purely realted to company law. Not sure why this has been posted here.

Still i am trying to attempt to answer your question.

In your scenarios you didn't mention the relationship between A to C and D. Is Company A the subsidary of D?

If so, Since Company D has filed the IP, what is the legal and actual status of company A? If you say company A is still exist and doing their normal business, then most likely company A should be the responsible for this.

who is responsible for what is purely depends on terms and agreements between buyer and seller. Nothing to do with SAP.

Note: I know you have mentioned about the partner functions of A,B,C and D but not the legal relations.

Regards, Sai Krishna.

[eduardo_hinojosa]

Hi,

Remember you have in SAP some standard objects as customer hierarchies (see SAP Note 1011714 - Sales values / Credit exposure in scenario Father - Sons), creation of customer partner functions (see the note I mentioned you yesterday),  you can create your own algorithms for credit control (note 1464839 - How to customize credit control in transaction OVA8 using checks USER 1, USER 2 and USER 3), you have the option to copy the text of contract in long texts in SO (see img tcode VOTXN) or upload it if you are running DMS in your system and your scenario sounds to me to milestone billing. By curiosity, although the requirement is other, see Note 611040 - Down payment invoice for Italy and you can understand what you can do with enhancements. For instance, if you are delayed in the provision of goods or machinery, perhaps you must recognize a risk with an accrual.

I believe you need to do a deep analysis with lawyers for getting the risks, scenarios you can find and build the proper flow with all components provided by SAP (relevant partners, credit control procedure, accounting determination, risk of bankruptcy, control it with statistics conditions and register it with accruals and so on). Of course, begin with customizing tools and when they aren't enough, go on with enhancements, BADI, VOFM and other standard modifications.

For instance, I remember a case where a company wanted to control not only the customer, they want to control also the managers (you can have records of past bankruptcies with the same managers but for different customers). You can save these managers as partners, and after, with userexits (see note 1464839) and customer info structures (LIS) check if you can lock the SO.

It's an idea.

I hope this helps you

Regards

Eduardo

Message was edited by: Eduardo Hinojosa

[eduardo_hinojosa]

Hi

Depend the nature of sold goods and the law (common law, civil law, bijuridicial or others). perhaps the payer have a type of privilege or not. Remember you can create a partner role to manage this requirement, for instance, 'legal owner of goods' (see SAP Note 380507 - SD partner determination: FAQ for the functions for further information).

I hope this helps you

Regards

Eduardo

[former_member184080]

Hi Eduardo,

How do you get SAP notes so quickly? Is there any logic to search.. Most of the time i spend lot of time in searching notes in Service market place.

Regards, Sai Krishna.

[eduardo_hinojosa]

Hi Sai Krishna,

It's easy, you have the option for downloading the notes in format PDF and you can save them with the name you want, because sometimes you don't have a quality access to internet, SAP marketplace doesn't work. The question is use strings as 'partner' 'credit' 'procedure' 'pricing' 'VKOA' 'VOFM' 'F110' 'VBFA' 'performance' 'NAST' and so on. You can search them with your windows engine in your PC. After some time, we know what are the strings more accurate for defining a problem. It's other skill we need and one reason to help others, because I can check this skill goes on working.

Regards

Eduardo

[Lakshmipathi]

Sold To Party, Ship To Party, Bill To Party and Payer are SAP terminologies.  Imagine in a company where SAP is not implemented, there the terminology used would be Administrative Office, Sales Office, Branch Office etc.

Having said this, invariably, it would be Administrative Office which is nothing but Sold To Party, Bill To Party and Payer who would deal with all legal matters.

G. Lakshmipathi

[Former Member]

Dear ...

as per my knowledge Only sold to party is responsible for legal prospective  

[former_member184080]

Hi Abhinav,

Check below thread will explain you more.

http://scn.sap.com/thread/842608

Regards, Sai Krishna.

[Former Member]

Dear sai sir

OP Asked who is responsible if four partner functions but you provided link tells difference between sold to party and ship to party 

[former_member184080]

Hi Abhinav,

Further to above thread, let me explain you in practical scenario.This way we will get lot of comments from others if its wrong.

Say for E.g. Your client is into Pharma Industry. They sell medicines to hospitals which has chain. Take an example of Apollo hospitals, India.

This has many hospitals across the India.

Now Say they place an order: For e.g. Sold to Party - Apollo Head office

                                            Ship to Parties - Apollo - Bangalore, Chennai

                                            Bill to party & Payer - Apollo - Finance Department (Eg. Hyd      but different address)

Now, in above scenario, The POC for client is always Apollo Hyderabad, which is placing the order. For any payment related they will always approach Apollo finance division because they are the one who should pay for the billed Invoice.

@Experts: Please correct me if i am wrong in my explanation.

Regards, Sai Krishna.