Vendor extend to customer for subcontracting

[former_member623831]

Dear All,

Please clear my doubts fundamentally.

1) For subcontracting does vendor needs to be extended to customer or vice-versa.

2) For my client vendors can be extended to customer apart from service vendors, why is it so ?

3) In extension to the first point customer can be extended to vendors for a service vendor, why is it so ?

Please clear this ASAP.

[former_member623831]

Thank you for the wonderful explanation.

One question

Why is it so when i try to create a service vendor with service vendor account group.

It asks me to create a an external customer for extending vendor to customer.

This is not in case of extending a normal purchase vendor to customer.

Please help

[sanilbhandari]

Hi patt2019

Please find the responses below:

1) For subcontracting does vendor needs to be extended to customer or vice-versa.

There is no requirement to create a vendor also as a customer, unless you are doing subcontracting as well as sales with an external party,

2) For my client vendors can be extended to customer apart from service vendors, why is it so ?

Vendor can be customers only if there is both purchase and sales with an external party. Regrading the segregation between normal purchase and service vendors, there is no such requirements from a system perspective. However, from the perspective of presentment of books of accounts, it is good to classify purchase and service current liabilities seperately, so most of implementations have separate Vendor Account Group for normal purchases and service vendors,

3) In extension to the first point customer can be extended to vendors for a service vendor, why is it so ?

I do not know why is that, since it is a business process specific to your client and you should know your business well rather than anyone else in the community. There must be a business process, which is why this is being done and you should ask your user that question, if you do not know it.

Thanks & Regards

Sanil Bhandari