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Requirement to bill customer before vendor invoice in third party processing

Former Member
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We have a requirement to bill a customer before the vendor invoice in third party processing. The reason behind this is because the vendor send invoices only once in a month and the customer cannot wait for so long to to receive their invoice from the business.

I saw some discussions that the third party processing with shipment notification can be used however when I check the business flow in that case I see the following.

  • A Third-Party Sales Order is created and a purchase requisition is generated automatically 
  • A list of purchase requisitions to be assigned is displayed 
  • The assigned purchase requisitions are converted into purchase orders 
  • The purchase orders are approved 
  • A statistical goods receipt is posted 
  • The vendor invoice is verified and posted 
  • The billing is created

It clearly says that the customer billing document is only possible after entering the invoice from the vendor. Which would be the best way to fullfill this requirement?

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Answers (1)

Answers (1)

srinu_s1
Active Contributor
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Yes, You can achieve this very well through 3rd party sales with shipping notification process.

Here, you can bill the customer with out doing MIRO.

Subject  you maintain the below config difference.

In VOV7 (For TAS )item category the billing relevance should be (G) and

in the copy control VTFA  at item level  for item cat (TAS)maintain the billing qty(E)

remaining all settings are same as 3rd party sales with out shipping notifications.

then you create the cycle

thanks,

Srinu.

Former Member
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Srinu, Thanks for your response.

You mentioned In VOV7 (For TAS )item category the billing relevance should be (G)

Question -G Order-related billing of the delivery quantity- This delivered quantity is the quantity coming from the shipment notification of the Vendor?

You also mentioned in the copy control VTFA  at item level  for item cat (TAS)maintain the billing qty(E)

Question- E Goods receipt quantity less invoiced quantity- This is the dummy GR that we create in third party order processing with shipment notification? What does less invoiced quantity mean?

Best Regards

Emil


srinu_s1
Active Contributor
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Question -G Order-related billing of the delivery quantity- This delivered quantity is the quantity coming from the shipment notification of the Vendor?

Yes this is the qty delivered by the vendor to the customer nothing but MIGO done by the vendor, system copy the MIGO qty.


Question- E Goods receipt quantity less invoiced quantity- This is the dummy GR that we create in third party order processing with shipment notification? What does less invoiced quantitymean?

E means it is qty from Order qty- MIGO qty= Invoice qty, let us say, order qty= 10qty and MIGO= 5 qty then system copies 5 qty ( billed qty) to bill the customer.

thanks,

Srinu.

Former Member
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Srinu,


Yes this is the qty delivered by the vendor to the customer nothing but MIGO done by the vendor, system copy the MIGO qty.

Do you mean the goods issue done by the vendor to the customer in the vendor system? And this quantity will be copied into our ( where the third party order is created) system?


E means it is qty from Order qty- MIGO qty= Invoice qty, let us say, order qty= 10qty and MIGO= 5 qty then system copies 5 qty ( billed qty) to bill the customer.

Suppose the customer ordered 10 Qty. Vendor delivered 2 Qty wouldn't the above equation Order qty- MIGO qty= Invoice qty be 10-2= 8? but we should be really billing the customer only for 2 right?

Thanks and Regards

Emil

srinu_s1
Active Contributor
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Do you mean the goods issue done by the vendor to the customer in the vendor system? And this quantity will be copied into our ( where the third party order is created) system?

No, MIGO done by in our company system only. May be you might have misunderstood because of  my sentence.instead of company i mentioned as Vendor.

For Vendor this process will become as standard sales and he will do PGI. However in our system we do MIGO .


Suppose the customer ordered 10 Qty. Vendor delivered 2 Qty wouldn't the above equation Order qty- MIGO qty= Invoice qty be 10-2= 8? but we should be really billing the customer only for 2 right?

No you have mistaken my idea, it was not a formula just i was giving example.

Billing qty is nothing but it is qty copies from source document to target document.

EGoods receipt quantity less invoiced quantity

for example order qty is =10 and vendor delivered first time 2 qty to the customer and he billed our company for 2qty and we billed the customer for 2 qty.

And next time let us assume again Vendor delivered 4 more qty and billed us 4qty.And this time when you are billing the customer in VF01 system will propose the 4qty only( total goods receipt qty 6 - already invoiced qty 2).

Hope now you understood the meaning of E(goods receipt qty less invoices qty).

And did you try your requirement as mentioned in my first reply?

thanks,

Srinu.

Former Member
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Srinu,

Thank you for your response

Have not tried it yet at this stage. If you look at the following documentation

http://help.sap.com/bp_bm604/BBLibrary/HTML/107_EN_US.htm  it mentiones about the invoice verification being done before customer billing. This is the scenario with ASN.

My requirement as stated before is to bill the customer before invoice verification the reason being ,,,,vendor invoices come only once in a month and the customer cannot wait so long.

srinu_s1
Active Contributor
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In 3rd party sales process we have two scenarios.

1. With out shipping notification ( this is standard we usually many time follow).Here MIRO is mandatory before creating customer invoice.

Billing relevance is (F) and in copy control in billing qty (F).

2. With shipping notification (here MIRO is not mandatory before customer invoice creation.

subject to you need to have the changes in below.

In VOV7 (For TAS )item category the billing relevance should be (G) and

in the copy control VTFA  at item level  for item cat (TAS)maintain the billing qty(E)

remaining all settings are same as 3rd party sales with out shipping notifications.

Here system will not stop at the time of invoice creation even though MIRO not completed, later as per your requirement you can create every month end.

Please check your IDES system and let me know if you have any issues? It will work definitely.

thank,s

Srinu.

Former Member
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Another question, will this appear in VF04?

There is a note 210561 which mentiones billing relevance B and F . There is no mention of G. Would you have any information on this?

former_member211668
Participant
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Dear George,

The thread was nicely described by Srinu. If I am not wrong, I can give a scenario where we use Billing relevance as "B" in Item Category TAS. Suppose there is a agreement between Business and Customer that business will invoice in full to the customer if vendor delivers partially also. Means customer has ordered 100 qty but vendor delivered only 50 quantity but customer will be billed for whole 100 qty. In this case we use Billing relevance as B.

Dear Experts, plz correct me if i am wrong.

Thanks & Regards,

Tiwari