agent cycle

[Former Member]

Hi,

I have a requirement where a company A act as an agent for company B so the process works like that company A sells products from company B stock without having the right to change prices, the cogs affects company B, company B customer is company A, company A is responsible for collecting money from customers and at the end of the month it takes its commission according to the amount of sales, how can i apply this process on the system ?

[phanikumar_v3]

either the cases my earlier suggestions will work--confirm.

Phanikumar

[phanikumar_v3]

Let us break this requirement into Following:

1.Company B collects order for Company A---So this B--will be Sold to party(might be Bill to also--The person who sends requirements to business called Sold to party)--So assign this B as a partner in customer master of A.

2.After receiving of order, A--issue goods to Company B--So B again can be a Ship-to.

3.Then B sends cars to deliver Goods--So might be Forwarding agent too..(here some more clarity required from your post)

4.For This order amount, A has to give some amount as commission to B---So assign B as Commision agent in CMR of A.

Note: If A and B  has been treated as different entities--then create one customer in A entity--then extend this to B entity.

Hope this helps.

I may be wrong--please correct if any..

Phanikumar

[Former Member]

Dear Phanikumar,

I tried what you told me but the problem is that company B is (ship to, sold to and payer) but compan B's customer the one who will receive the goods is (bill to) so company B has all customer accounts this means that i have to do another cycle in company B to post amount on customer account.

[phanikumar_v3]

If the customer need to be in B also--then what about COGS??(has to be in B or A--confirm)

why dont you keep one accounting key to carry the required amount from your pricing to one GL by making it as statistical...

Phanikumar

[Former Member]

Dear Phanikumar,

cogs will affect company A only, company B doesn't has cogs gl. What do you mean by one accounting key to carry required amount from your pricing to one gl ?

[phanikumar_v3]

Accounting Key GL means--at the time of Commission settlement from B to A.

Your First post says------'''Company A act as an agent for company B """""

Later posts says that''''''cycle goes like that company B collect orders from customers and give it to company A"""

Big Confusion & Quite contradicting statements here.....

Also you can have one more accounting key or sub total which gives the actual sales value(Price minus Discounts plus taxes/freight) to one GL--there by you can analyse the respected accumulated amounts from the GL assigned....

If you want to take the total sales for A customer(As one partner)--it can be very well retrieved in later times...

Hope this helps...

Phanikumar

[Former Member]

Dear Phanikumar,

sorry i made a mistake, company A will collect orders for company B and it is the company which has customer accounts, company B only deals with company A, company A delivery goods to customers and collect money from them and it takes its commission according to the sold qty.

[former_member186385]

Hi Mohammed,

As explained , it can be easily mapped with Intercompany Sales process

1. Create Sales order in Company A

2. In Sales order change mode assign Plant of Company B

3. When delivery is created, Material Document and Accounting document is posted for Company code B and stock update will happen accordingly

4. Create Billing document from A company to end customer

5. Intercompany Billing between A and B

Hope this will work, try to enable this process and revert if you see any difficulty

[Former Member]

Dear Vemuri,

Company B is responsible only for delivering products to customers and invoice them and it doesn't has a stock to keep products.

[former_member186385]

Hi Mohmmed,

In that case,

1. Create sales order in Company B

2. Item category should be determined in such a way, it will create PR and it should be sales order stock ( special stock as E)

3. Convert the PR to PO to Company A

4. In PO, assign Plant of A as selling Company and Plant of B as receiving Company

5 Do MIGO in receiving Plant B which will be a sales order stock

6. Create MIRO from Company A to Company B

7. you can create delivery from Company B with sales order stock

8  Create Billing document from sales organization of Company B to customer

configuration needed is

1. Item category with Special stock E

2. Item category determination

3. Schedule line  which will create PR ( please refer to standard schedule line CB)

just try and revert if you have any difficulty

[Former Member]

Dear Vemuri,

This means that cogs will affect company B and this is not right because company b doesn't has storage location it issues goods from storage location in company A so cogs will affect company A only.

Cycle goes like that company B collect orders for company A then company A make sales order and issue goods to company B and invoice company B, company B send cars to get products and send them directly to customers and then it invoices customers.

[former_member186385]

Hi Gouda,

company B send cars to get products and send them directly to customers

If company B sends goods to customer, then obviously there will be a goods movement and inventory update.

and moreover, Inventory valuation happens at Plant/Company code level and not a storage location level

i feel there is no standard solution for this , may be you have to tweak standard

thanks

santosh

[Lakshmipathi]

Couple of queries here

• What is the role of your client in the process you explained? Company A or B? 
• Are both A & B are into SAP?
• If they are a Group Company, have you explored Inter Company Process?

G. Lakshmipathi

[Former Member]

Dear Lakshmipathi,

- My client is both company A and company B.

- Both will use SAP.

- Company B doesn't has storage location to keep products, cycle goes like that company B collect orders from customers and give it to company A then company A sells product to company B and company B just deliver products to customers.