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Shankar C.A.
December 11, 2012 at 11:31 AM
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Ken C replied
December 11, 2012 at 10:14 AM
Agree with Bijay, technically the purchasing process without PO looks fine but it will raise eyebrows
of SOX auditors, better check with client's internal audit team purchasing without PO is a heavy area
where a lot of frauds came in. Cheers.
http://www.bellwethercorp.com/Portals/56204/docs/Purch-Automation-SOX-Compliance(3).pdf
http://www.infosysblogs.com/supply-chain/2009/11/sarbanes_oxley_sox_and_the_pro.html
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Murtuza Sadriwala
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7 replies
Correct Answer
Ken C replied
December 11, 2012 at 10:14 AM
Agree with Bijay, technically the purchasing process without PO looks fine but it will raise eyebrows
of SOX auditors, better check with client's internal audit team purchasing without PO is a heavy area
where a lot of frauds came in. Cheers.
http://www.bellwethercorp.com/Portals/56204/docs/Purch-Automation-SOX-Compliance(3).pdf
http://www.infosysblogs.com/supply-chain/2009/11/sarbanes_oxley_sox_and_the_pro.html
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Bijay Kumar Barik replied
December 11, 2012 at 10:20 AM
Hi,
Its true in consignment process,the price picks from consignment info record only but you need a
Purchasing document number which serve as committed document where in payment time(F-53)to
vendor,finance team may enter Purchasing document number as reference before paying to
vendor.
Also for reporting purpose in future,if any - you need a Purchasing document number!
Regards,
Biju K
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Manually
You post the goods receipt using the dialog transaction. You must enter the
movement type and vendor number. You enter item category K for the rack
jobber goods.
If you use this option, the goods receipt data is transferred from the store
electronically to the R/3 system. Item category K is assigned automatically.
I have a question on one practical scenario. When goods are in transit between warehouse
(Consignment stock) and production house and if some damage/loss happens to material,
who owns this loss? Is it vendor or customer? Do we use inco terms here as well based on
which ownership terms can be arrived at?
Indeed in business transaction the incoterms are defining the ownership of the goods.
But keep in mind that eventhough it’s well spread not all countries sign the chart.
In addition there are incoterms may be sometime interpreted differently in country and juridiction.
Finally the purpose of the consignment is indeed for the manufacturer not to have its own stock
increased with the consignment stock. So it is not shown in his stock account because he does not
possess them. Now of course it’s not because you do not own them that you might not responsible
for damage to the goods. All this should be defined in a proper sales contract ! Who is reliable for
what. Incoterms can help in that too.