Hi,

BaaN IV C4, SP 9


We have two BaaN companies in two different countries on two different servers as follows:

Co. A - A Manufacturing Company in Country A

Co. B - A Distribution Co. in Country B

Both companies belong to the same Parent company.

What we would like to do is for Co. A Manufactres and sell to Co.B and then Co. A charges A commission to Co. B for selling the goods.

We are also thinking of two more scenarios:

1. Co. A delivers the goods to the Customer directly and let the customer pays to Co. B

2. Or let Co. A delivers the good to Co. B and then it sell it to the customer .

On both two scenarios mentioned above the end result will be CO. B invoice the customer and pays a commission to Co. A.

We would also like to Co. B to raise the Sales Orders in Co. A either logging in to Co. A directly or by EDI etc but we would like the users in comapny A. to be triggered when a Sales Order is raised by Co. B.

Is the commissions concept different between BaaN IV C4 and in BaaN Vc?

Any thoughts on the above complicated scenrio would be highly appreciated since I was informed that BaaN can't handle such a scenario but I am confident it can.

Thanks.

Hello,

Regarding commissions, there are many different scenarios, depending on corporate policy, revenue recognition, sales, and other tax issues.

Just to clarify, are both companies mapped to the same group company, then, are you also using mcr? pls advise.

regarding commissions, both the scenarios are possible, however, from customer perspective, they may prefer to see the distribution co's info, as remit to address. Hence a direct ship is the best option in this case.

you should be able to ship direct from mfg co. to customer, with invoice to being dist. co. OR you also have choice of invoicing customer directly from mfg co. AND paying commission to dist. company.

Aside from Baan functionality there may be tax implications as well based on which solution you choose. Regarding EDI, you may want to look at the Affiliated company, and Intercompany Finance features also, there is a lot of functionality there.

1. "Are both companies mapped to the same group company"

- No they are independent of each other.

2. "Aside from Baan functionality there may be tax implications"

- In order to avoid the tax issue, we wouldlike Co. B to pay Commission to Co. A

""The Commissionaire is the commission agent who accepts or sells goods for the account of his principal, but in his own name. He is independent of his principal, has a claim for his commission"

How do we achieve this scenario in BaaN?

Hi,

There are two parts to your question, first the business scenario, and second how to map this into Baan.

for the first, yes, it is possible for any entity, or person to be a distributor of another company, even if they are affiliated. The scenarios for country, currency are not relevant, as this is basically a transaction between two companies.

To map this into Baan, you must create the distributor as a customer to the manufacturing company. Then follow the setup both in customer master, sls order master data, and commissions module, pay close attention to relations, and agreement groups,. as that is the key to getting this right.

all the best, keep me posted.

Thanks Baandude.

Hi ,

I need more info on the setup in BaaN. We would like the distributor to receive the order, enter it in its company. The delivery can be done by either the Manufacturing company or the distributor and finally the distributor to send the invoice & receive the payment. However, it is the Manufacturing company which will calculate the commission(since the money will be transffered into its account) and give 5% to the distributing company. Is this scenario feasible in baaN IV C4?

Thanks,

Hello Abuibra,

Yes, the scenario you seek can be achieved in Commissions / rebates module, here are some of the steps:
- Enter the commission / rebate groups in item data with appropriate data
- Is the rebates based on volume, or graded %, or is the 5% based only on dollars. Suggest you set up this as a rebate Business partner.
- There is a mapping in Commission Rebate module where you must specify the relationship with dist co. and also the rate of 5%,
- You can also setup any agreements if applicable

The setup may require some testing but is certainly possible

Best regards,

Hi,

I am also interested in how to setup the distributing company. Do we need to setup the Distribution model in BaaN IV C4 or which is the best way since we want to to create a new baan company fro the distributing company since it is a requirement.

Thanks