Thanks Rachel for the feedback. You hit some critical points that I did not
include in my first request.
Actually most of our invoices arrive simultaneously with the ASN. We are
providing our internal business community the stats on what lag there is, if
any, between ASN and Invoice. It's very very small.
You're right about the transportation costs issue. We invoice our customers
for product and actual transport costs simultaneously as do our vendors.
ASN trigger would require another process for catching up on freight.
Last of all, our cash flow lag is really centered on the fact that we do not
invoice until our AP group approves and accepts the vendor's invoice. If the
vendor invoice is out of tolerance, the customer's invoice is delayed until
reconciliation occurs.
thanks,
Robert Paterson
[EMAIL PROTECTED]
-----Original Message-----
From: Electronic Data Interchange Issues
[mailto:[EMAIL PROTECTED]]On Behalf Of Rachel Foerster
Sent: Friday, September 01, 2000 2:51 PM
To: [EMAIL PROTECTED]
Subject: Re: Benchmark - Trigger cust invoice on vendor drop ship ASN
Personally I wouldn't wait for the drop-ship vendor's invoice before
invoicing my customer, especially since you also receive an ASN. The only
issue might be pricing or other charges that you didn't anticipate, such as
transportation. In the case of transportation, an additional invoice could
be generated to your customer for shipping charges only once you know them.
Cash flow rules the game and to delay invoicing your customer doesn't make
sense to me. However, you didn't indicate the elapsed time between receipt
of the ASN and the invoice from the vendor. I'm assuming they are both
electronic. If yes, you should be able to receive them within a very short
elapsed time frame. If your vendor won't cooperate with you I'd look for
another supplier.
Rachel
vendor initiated purchase orderI would appreciate any feedback the EDI list
members could give me on the scenario outlined below.
We are a distributor of hard goods to business customers. A large portion
of our orders come from our inventory for our customers as well as drop ship
from our vendors. Our systems do not generate invoices to our customers for
drop ship orders until we receive and validate our vendor's invoice.
There is a belief among some of business community members that we should
not wait for a vendor invoice to generate the customer invoice, but instead
generate an invoice to our customers when we receive an ASN from the drop
ship vendor.
Are any of you folks doing this today?
Thanks,
Robert Paterson
[EMAIL PROTECTED]
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