Buyer Drop Shipment Fiscal Documents

You can capture, process, and validate the following:

• Drop ship sales fiscal documents

• Drop ship remittance fiscal documents

• Complementary fiscal document for tax and price against a sales drop ship fiscal document

You can do the following:

• Automatic reference between drop ship remittance fiscal documents to sales fiscal documents

• Automatic receipt creation

• Automatic invoice creation

• Costing and accounting of receipts

The buyer drop ship workflow includes the following:

The process starts when a buyer raises a PO with a seller, who in turn asks the original supplier of the goods to directly send the items to the buyer. A fiscal document generally identifies the parties involved in a buy or sell activity. For the drop ship business process, multiple fiscal documents are involved in order to meet the fiscal compliance.

A buyer can check for fiscal compliance. The buyer originally raises a purchase order (for example, PO1) to the seller; accordingly, the seller creates a sales order (for example, SO1) and also generates an outbound drop ship sales fiscal document (for example, FD1) to send to the buyer. In parallel, the seller also orders the supplier to send the goods directly to the buyer by placing an order with the supplier (for example, PO2). The supplier, upon the shipment of goods, generates a drop ship remittance fiscal document (for example, FD2) referring the drop ship sales fiscal document FD1, and dispatches the goods to the buyer location.

The buyer receives two different types of fiscal documents namely drop ship sales fiscal document FD1 and drop ship remittance fiscal document FD2, which is captured and validated for the activity to be marked for fiscal compliance.

The drop ship sales fiscal document typically contains the material details and tax amounts involved in the trade transaction representing the sale value of the goods by seller to its customers. On receipt and capture of the fiscal document, a prior to delivery validation is done, comparing the items and prices of the items listed in the fiscal document against the items and prices specified in the PO. A prior to delivery validation of taxes is also performed against the PO item quantities and prices. Differences in the item prices and taxes are recorded and the fiscal document is placed on hold pending investigations and resolution of the item price or amount differences. The drop ship sales fiscal document is marked as validated only if all referencing drop ship remittance fiscal documents are captured and validated. Upon validation, this fiscal document is used to create receipt in the Receiving work area, to create a payables invoice in the Payables work area; report for applicable recoverable taxes in the Tax work area and costing of the receipt value of the goods in the cost management application.

The drop ship remittance fiscal document typically contains the shipment documentation of selling company's supplier that shipped the goods and this information is used as bill of lading in the trade. When the purchased materials are delivered to the buying organization's location, the delivered item quantities are counted and compared to the items quantities specified in the drop ship sales fiscal document. Differences in delivered quantities are recorded and the fiscal document is placed on hold pending investigations and resolution of the quantity differences. On successful validations, the item quantities are automatically updated in the drop ship sales fiscal document for completing automatic receipt creation in the Receiving work area.

You can create a complementary fiscal document for tax or price, and you can receive and validate this document for complementing price or tax of the sales drop shipment fiscal document.