Dollar / Quantity value SO limit on shipments against customers order

[Former Member]

I have a supplier who is saying they use SAP and cannot place limits (get notifications)  if they go to ship in excess of $ or quantity on a PO  I have sent them.

Example:

I issue them a PO to release throughout the calendar year-    100pcs

They have agreed to ship and bill as of my plant requests product.

When they have shipped 100pcs and a plant calls to request more they just keep shipping. This of course results in an invoice block.

Now multiply that times hundreds of line items and dozens of POs and a hand full of plants and it turns into a BIG billing nightmare.

Yet they tell me there is not way to limit what they ship, which seems absurd to me. Any ERP system I've ever had experience gives some sort of controls for shipments in Excess of what the customer ordered.

They also just ship product against POs without a valid revision. Admittedly this is do to a lack of controls on my end (a lot of people calling in orders). But Does SAP not have controls that would notify or prohibit adding to a customers order  or at least release a notice of a revision to the customer?

My guess is they are setting up and account and only shipping against a credit limit on the account and not placing any controls on the PO/shipment transaction level. Is this possible in SAP?

Any advise/thoughts on how to question what they are doing and how to talk them through a solution.

*Please don't tell me to source a new vendor as I don't have the ability to do that* I have had multiple conversations about this issue and they are telling me there is nothing they can do. They are relatively new to SAP and I don't know if that is true or not.

Thanks in advance.

[Lakshmipathi]

In SAP, couple of options are there to address this and it is only users discipline whether to adopt to that control with a warning message or error message.

One option would be over delivery tolerance you can set either at material master or customer master or customer material info record.  The other option could be Proof of Delivery concept whereby, for whatever quantity your plant accepts, only to that extent, your supplier can invoice you.

I don't understand your comments

This of course results in an invoice block.

what do you mean by invoice block?  Is it at your end or at your buyers' end

When they have shipped 100pcs and a plant calls to request more they just keep shipping. 

Yet they tell me there is not way to limit what they ship

The above two statements contradicts each other.  When you say initially, your plant have requested to ship, in the next text, you say, the supplier are telling there is no way.  You have to specify whether based on your plant's request, the seller are shipping or on their own.  Depending upon this, you can take a call.

Again on your other comment

and it turns into a BIG billing nightmare.

I presume, you intend to say that the seller are submitting billing documents in bulk and you want to avoid this.  If my understanding is correct, this can also be restricted in SAP by consolidating multiple deliveries into one billing document or one consolidated billing document at the month end.

G. Lakshmipathi

[Prasoon]

Hi,

   It seems the issue with your supplier SAP. SAP do have the control for delivery based on the PO / SO quantity. As per your explanation, it seems to be a long term agreement with you and the supplier. The supplier has to create a long term sales document, (probably Sales Scheduling Agreements with validity) based on the PO you have given and create schedule lines based on your request to supplier. Refer the thread: "difference between sales order and scheduling ... | SCN and the help doc: Scheduling Agreements - Sales (SD-SLS) - SAP Library

   In addition, you have to keep track or amend the PO based on the additional requirements to avoid the invoice block.

Regards,

AKPT

[former_member213836]

1. Create a quantity contract

2. In the User Parameter ID EFB, Select Possible Reference Object (Contract/Purchase requisition). Maintain Source list if you are using Purchase Requisitions with contract as allowed source.

3. Assign the  User Parameter to the relevant users.

4. In the Attributes of System Message Make the following message (06078) as error message

Regards,

Niranjan