on 2010 Jul 19 11:37 AM
Hi,
We have defined different Vendor Account Groups & Reconciliation Accounts for Raw Materials Vendor & Service Vendor.
But there is a Vendor which is providing us both Raw Materials & Service. Should we created one Vendor Code for the vendor with either Vendor Account Groups& or we should create two Vendor codes with two Account groups.
What is s the Standard practice? As per me, we should create one vendor only with Raw Materials Vendor Account Groups & add the Withholding Tax Data. The Accounts person is asking for creating two Vendor Codes.
Please guide.
Regards,
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Hi,
1) One vendor doing supply of material and also servicer(both), we create one vendor code for that vendor and defined account groups are differ('Z001-Material Supply vendor & Z002-Service Vendor) during vendor code creating and schema groups of vendor is one as Domestic vendor. Based on this schema groups withholding tax working config.to be done.
2) One vendor doing purely supply as 'Material Supply Vendor' during vendor code creation in one code only
3) One vendor doing purely Service as 'Service Vendor' during vendor code creation in one code only
The vendor doing both(supply & Service) create one code and posting for supply as GRN and Service as Service entry sheet. Based on the document type we have taken how much value in supply and how much value in service that we can take from vendor accounting statement.
Hope, it is useful for you,
Regards,
K.Rajendran
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Hi,
It is always better to create two seperate vendor codes for RM & Service.
Because in case of service, TDS will be applicable, which will get reflected in MIRO every time.
Also for service vendor, you will tick "Service based Inv Varification", & for RM Vendor "GR based Inv varification".
Hope this helps.
Regards,
Piyush
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hi
you can also use the same vendor code for both the purposes
as the reconcillation account is determined from the valuation class in material master and OBYC settings
and it all up to the client
if he need 2 vendors then create two
regards
kunal
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Hi,
I think it is upto your dicision becasue reconcillation account is taken from the vedor master as per your given details you have seperate ACCOUTN group for raw material vendor and service vendor so it is up to you, u can create sepearte vendor code for both the raw material vendor or service and as per your process itwill be better if u create one new account group and reconcillation account for vedor those are providing raw material as well as service. it will be easy to analys insted of two vendor code for same vendor.
regards,
zafar
Hi PK,
Better clear with FI business team. what actually required for seperating with Raw material & Service.
Because some time they have to capture TDS for the service sepetatelly & need to account.
If we use one Recon account. the for reporting might be diffcult.
rest of the case in term of logisticts you can assure only one vendor code enough. But if the FI implication you have discuss with Business users.
SAM
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