vendor to vendor procurement.

[former_member214046]

Hello Expert,

In one scenario my client have two vendor,A & B,My client want that vendor b will supply the raw material to vendor a and vendor a will use that material and send to my client,but payment will pay by client to vendor b.

Pls suggest,thanks in advance............

[former_member192897 · Accepted solution]

For me, your query is still unclear.

What kind of activities does your vendor "A" performs after receiving the Material from Vendor "B"

What will be the Output from Vendor "A"? Is he doing any subcontracting / Service activity after receiving the Material from Vendor B? Is he charging anything from your client?

I am suggesting the below solution based on what ever i have understood from your points.

1) If you are procuring the Material from Vendor "B" who will supply the goods directly to Vendor "A", then you can create a normal Purchase order and in Delivery address tab, you can maintain Vendor "A" and click on SC vendor tick. Once you perform GR against this Purchase order, stock will get updated at Vendor "A" (Stock Provided to Vendor).

You can then go for Invoice verification same as for other purchases.

2) And you have to create one Subcontracting Purchase order with Vendor "A" with Item category "L" and specify the component (If the Component is same as Output, Input the same Material code and it becomes recursive) If you are not paying the Vendor "A", click on Free item check box in Subcontracting PO. Once the Vendor A done with the activity, you can receive the goods against Subcontracting Purchase order.

If this is not the business case, You have to explain your business scenario in detail.

[former_member214046]

thank you very much to all of you,i got yours all points,when i am paying to vendor b then material is belong to us(client) and a will work as our sub-contracting vendor,but have little besides the service vendor a will also use his own's material, so how can we do the payment for his material not service in sub-contracting case....

thanks again to all of u

[former_member192897]

You have to purchase the Material from the Subcontractor in the same way as you bought from another supplier. In this case, Create one more line item in Subcontracting purchase order for the component that is added by Subcontractor with out Item category and enter the subcontractor in delivery address and click on SC vendor and check once whether this suits your requirement.

[former_member214046]

hello Jurgen,

thanks for ur reply,my only doubts is how will i pay to vendor b,because b will supply to vendor a,and

we rcv material from a(include b's material),on behalf of which record we will pay to vendor b?

[former_member776806]

Hi,

Ask Vendor A to send you the (Vendor B's) material receiving confirmation, and based on this pay to the Vendor B for his material.

Best Regards,

[former_member188914]

Vendor b can send you shipping confirmation which will update your PO confirmation tab(once he sends good to vendor A). Based on this you can proceed with further processes in your system.

[former_member214046]

thanks to all,

but in my case vendor a is not sub-contracting,my client rcv the material from vendor a and b,then it assemble in his place,now he wants that vendor b will send the material to vendor a,and vendor a will use vendor b's material and his own material,send it to my client in complete condition.

but payment of both vendor will pay by my client as per their contribution

[JL23]

What is so difficult? You have to have 2 POs, for each vendor one. You have to do receipts, you have to post invoice and you pay, everything standard so from where is there any confusion?

Is it just because of the fact that b has to deliver to a? You have a delivery address tab in your PO item detail, where is the problem?

You  enter the vendor number of a  in the item details of the PO to vendor b. 

And if your form developer has not reinvented the wheel (and damaged it) then you automatically get the address of a as delivery address in the PO to b

[former_member188914]

okay.. So in this case you do not tick 'SC vendor', create two standard POs and just enter your vendor in delivery address tab. This will do the process from your side.

Regards..

[former_member188914]

Hi..

I believe, you can make use of "SC vendor" tick in delivery address tab at item level. In this case you will have toraise 2 POs. First create a PO to B with SC vendor tick and maintain Vendor A as SC vendor. .The effect of this tick is that the delivering address in PO will be address of vendor A.  Then a second PO, as item categoty L, for vendor A.

Regards..

[former_member205024]

Hi Saurabh,

In this case Vendor A is a subcontractor.But in this scenario subcontractor will be paid directly from client instead of Vendor B right.

[former_member233510]

Try third-party procurement scenario by considering vendor A as your customer and Vendor B as your supplier.

[former_member214046]

Thanks Rosh,

for your reply,but i have to also pay to vendor A,for his material or service.

we have to pay both vendor,is this possibile in this case?

[former_member233510]

Then try third-party procurement for a sub-contract scenario.

Please refer this link: http://help.sap.com/saphelp_afs65/helpdata/en/2a/fad0f28e0f11d4a6a50060086fd66b/content.htm