AV
There are several ways to treat this transaction, but the first step is to
clarify the process.
Does the legal ownership of the goods pass from your company to the
distributor, or is the distributor simply a transport agent? Put another way,
does the distributor know the end customer at the time of receipt of the goods
and is therefore acting as an agent in the ordinary sense of the word?
If the distributor is an agent then you should consider using the
consignment stock route as the ownership never passes to the distributor but the
goods remain as part of your stock. In this case, any invoice between yourself
and the distributor is a "pro forma" invoice and if treated as such will
never be paid. The distributor is then invoicing the end customer on your
behalf as an agent for the $120. The end customer will then remit the full
$120 to yourself. You will have to raise a sales order against the end
customer for delivery from the consignment stock at the full $120 as this is in
fact the value of your sales, but with a sales condition for $20
rebate/commission which will be charged to the commission provision account giving you
a net $100 revenue income. The end customer will still receive an invoice
for the full $120 but your revenue will be reduced by the $20 provision.
Finally, you should make a commission payment to the distributor for the $20
- this is done by clearing the $20 from the provision account.
The indication that your distributor is creating his own invoice with your
invoice number to him (and notifying the end customer who the to who the
payment should be made) is consistent with the above agency principle.
However, your problem is not how to deal with this in SAP, but rather that your
procedures do not appear to follow a logical practice. Indeed there should
be no need for any invoice of $100 on the distributor if the agency
agreement is correctly drawn up and the principles of consignment stock adopted.
If, however, the ownership of the goods does pass to the distributor, then
the invoice of $100 is valid. The payment from the end customer is to be
treated as any third party payment (e,g, from a factor house). In this case
you have no legal contract of sale with the end customer (although you may
have other liabilities relating to the product). When you receive the $120
you should allocate this to the distributor account and post $100 against
the sales invoice to the distributor and the balance of $20 to a rebate
provision account. Periodically as agreed between yourself and the distributor
you will remit the rebate to the distributor.
I suspect that there are also tax implications that you may wish to take
into account relating to the sales and commissions/rebates, but that is a
matter to be specified by your finance function.
When you have clarified what procedure you wish to apply, you should then
discuss the treatment in SAP with the SD specialists.
Paul Massey
email@removed
07921 850396
| | | ---------------Original Message---------------
From: AV
Sent: Monday, July 11, 2011 9:07 PM
Subject: Third customer payments
Hello,
Can you please help me how the below process can be possible in SAP?
We have a process in our client where we sends goods to a distributor and bill him for example, $100. This distributor then sends the goods to the end customer for example $120. The distributor will use the same invoice number to bill the end customer which we billed to the distributor. This end customer sends the payment for $120 to our client. Now, we want to take this $120 payment and apply the payment of $100 against the distributor and also the pay the $20 to the distributor.
Thank You. |
| __.____._ Copyright © 2011 Toolbox.com and message author.
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
| | Popular White Papers
In the Spotlight  _.____.__ |
0 nhận xét:
Post a Comment