3.3.2 Sales Order with Cash Repayment
Cash repayment: overview
UNHRD Sales process includes the sales of items between Partners. As per the Memo from UNHRD Network Coordinator (Memorandum for Cash Repayment.pdf) this process can be applied between External Partners by applying the solution detailed on this document. The process is separate in various phases: sale from seller's stock, procurement to buyer's stock and payment to seller. The Partner that approves to sale its materials is called Seller while the Partner that request for the materials is called Buyer. The Partner that acts as Seller is treated as Vendor and as such it is identified in the Cash Repayment process. Only External Partners can act as Vendor in the cash repayment process while items can be sold to either Internal or External Partners. UNHRD is not allowed to sell Inventory Stock recorded under WFP accounts. The Sales process managing this solution falls under standard UNHRD Sales procedure (i.e. 7% of MRC is applicable) while sales value is established by the External Partners acting as Vendors and mutually agreed by the Internal or External Buyers, as specified in Chapter 5 of UNHRD SOP. The value of the goods sold must be in line with the Invoice provided by the Partner acting as Vendor.
NOTE: In order to start the Cash Repayment process, UNHRD Customer Service staff must ensure that the External Partner acting as Vendor is able to issue an Invoice to be used for the repayment of the sale or a Debit Note to account the repayment.
The steps required to complete the Cash Repayment process are listed below: 1 Procurement of materials to Buyer’s stock 3 Sale of materials from Seller’s stock 4 Payment to Seller
Procurement of materials to Buyer’s stock
In case the Buyer is an External Partner, this part of the process is managed at Hub level by creating a POWM to receive the items under the Partner's stock. The Vendor code associated to the Partners that sales the NFI (the Seller) has to be picked from the list of WINGS Vendor Codes. In case the Partner does not have a Vendor Code associated in WINGS, the standard request to WFP Vendor Master for Warehouse Management purposes has to be submitted by UNHRD Focal Points for WFP Vendor Master issues. The value to be adopted has to match with value of goods removed from the Seller's stock. The remaining POWM specifications have to be entered as for any POWM created for the receipt in Warehouse Management for External Partners NFIs:
POJS can be released at Network Coordinator as last approving level.
This part of the process is completed by posting the GR versus the POWM.
In case the Buyer is an Internal Partner, this part of the process is managed by WM experts at Support Office (SAN) by performing a manual upload adopting same material code and value of goods removed from the Seller's stock and by applying Movement Type 561.
Sale of materials from Seller’s stock
This part of the process is managed by performing a manual decrease of stock from the Partner that sells the items in stock, the Seller. This action is performed by WM Experts at Support Office (SAN) upon receipt of confirmation for sale including material code, WBS of Seller and quantity and by applying a specific Movement Type - i.e. 567 - dedicated to Cash Repayment process. The value of decrease from Seller stock reflects the actual MAP value:
Payment to Seller
This part of the process is started at Hub Level by following below steps:
- 1: Once Customer Service Representative obtains the Invoice from the Partner acting as Vendor, a Purchase Requisition for Services has to be created. Account assignment to be adopted in the PRS has to be P for "Project' while the Item Category has to be left empty (this reflects the procurement of NFIs from the Partner acting as Vendor). PRS has to be releases by following the standard Corporate process.
- 2: Customer Service Representative creates the PO for Services from the PRS by selecting the Partner's associated Vendor number, adopting UNJS for ‘UN Joint & Statutory’ as Purchase Organisation, and the owned Purchasing group (e.g. AE9, IT9, GH9, etc.).
If it does not exist in WINGS Vendor database, Customer Service Representative has to request the creation of a new Vendor by following the standard Corporate process. The rest of the information is derived from the PRS created in previous step. POS has to be releases by following the standard process.
- 3: Logistics Staff post the GR versus the POS
- 4: The process is completed by UNHRD Finance by performing the payment versus the POS and GR created.