cancel
Showing results for 
Search instead for 
Did you mean: 

Blocking the sale of goods that have not been invoiced yet by vendor

former_member207541
Contributor
0 Kudos
70

Hi,

Is there any functional way to prevent the selling of goods that have not yet been invoiced by vendor i.e. LIV was not yet performed in their case? With other words, is there a solution, other than development, to inforce the following workflow: PO-GR-LIV-...Billing to customer?

Thank you,

H.

Accepted Solutions (1)

Accepted Solutions (1)

JL23
Active Contributor
0 Kudos

No, there is nothing that could prevent selling a material that is not billed, especially as it cannot be in the interest of the seller to restrict himself because his vendor is late with billing.

If the customer has not paid the last invoices to him, then credit limit customizing can control that you do not ship until the customer has paid.

What problems do you have if you sell earlier than you get a bill from your vendor?

former_member207541
Contributor
0 Kudos

Hallo Jurgen,

Thank you for your prompt answer.

Problem: we sell & bill in local currency; the price is derived from the value of goods in local currency and this later we have only when the vendor has issued its nvoice i.e. we then know the exchange rate (PO is in euro).

Kind regards,

Horatiu

JL23
Active Contributor
0 Kudos

is it really the price to your customer that is depending on the value that is posted with the vendor invoice? or is it more the Cost of goods sold that you worry about?

Please explain a bit more about your logistics process:

is it a third-party process? vendor direct delivery to customer.

or is it a stock-transfer? you customer is a another company in your SAP.

Do you manage your stocks with split valuation by batch, so that you individually know the costs of each batch?

if you manage neutral stocks, and sell from your warehouse, why is then the invoice of the vendor important for the sales process, as you do not have a direct relation in that case?

former_member207541
Contributor
0 Kudos

I am sorry that I wasn't very precise.

This would be the situation that is to be avoided:

We have split valuation.

PO - in euro & unknown exchage rate

GR - goods are valuated at the exchange rate valid on this specific day

Goods are sold & billed to the customer

Receive invoice from vendor, using another exchange rate as that it was valid on the moment of GR.

Now, in order to have corect registrations, all the postings have to be reversed, starting with the invoice issued to the customer. If selling the goods would demand a previous registration of the invoice from the vendor, reversing the process would be easier (at least, there would be no invoice to customer to be storned...).

It is more a problem of discipline (the billing exchange rate should be settled and fixed at least at the moment of GR) that the customer wants to inforce by such a measure.

From your previous answer I have understood, as I've suspected, that there is no way out by customizing... so just a development or organizational measures could offer a solution.

Thank you,

H.

JL23
Active Contributor
0 Kudos

unfortunately this is not really the answer to my questions

What do you exactly mean with correct registrations?

I guess you want avoid  to have some postings to difference accounts, in case the stock is already shipped and the variance between IR and GR cannot be distributed to the stock anymore.

former_member207541
Contributor
0 Kudos

What do you exactly mean with correct registrations?

I guess you want avoid  to have some postings to difference accounts, in case the stock is already shipped and the variance between IR and GR cannot be distributed to the stock anymore.

You are right, this is to be avoided.

Horatiu

JL23
Active Contributor
0 Kudos

if you  purchase to stock then the sales order does not even know about about purchase orders without invoice receipt, as the PO is in no way related to a sales order.

Which means you have to develop program code that does not allow to create a sales order if there is any PO without invoice.

Where as the sales order is probably not the problem, it is the goods issue to the delivery that must be restricted.

and this only if the remaining stock is less than the received quantities that are not yet invoiced by the vendor.

your business decision. We would probably lose billions in sale with such restriction.

former_member207541
Contributor
0 Kudos

You are right, thank you for your time!

Kind regards,

H.

Answers (0)