Manufacturer Representative

Summary of Requirement

ACMECO sells direct (where they act as a distributor), and also as a representative of a manufacturer. In the rep sales, ACMECO receives a commission from the manufacturer for the sale, but manufacturing, order fulfillment and invoicing all occur through the manufacturer. Sales Transactions are either completely direct (ACMECO has the inventory) or completely done as a representative (MFSO).

The process is as follows:
– Customer places an order with ACMECO
– ACMECO takes the order and sends order information to the manufacturer (this is referred to below as a Manufacturer’s Sales Order, or MFSO).
– The manufacturer sends back confirmation of order information (quantities & pricing), and commission rates.
– The manufacturer fulfills the order and invoices the customer. The manufacturer sends a shipping notification to ACMECO to alert them that the order has been fulfilled (this may be in several partial shipments)
– ACMECO creates a commission invoice to the manufacturer for the sale (the Invoice is not sent to the manufacturer). Commission Invoice may be for the commission due on a partial shipment.

ACMECO needs to record the sale and keep a historical record of it, and also needs to know for which sales lines commissions have already been invoiced and paid.

The desired solution will:
– Allow ACMECO to take sales orders in GP and track them in history
– Communicate order information electronically to the manufacturer (optional)
– Automate creation of Commission Invoices.

  • A Sales Order is entered in GP
  • When Items are added the system captures the default commission percent for that item and stores it on the Sales Line
  • Order is printed and sent to Manufacturer
  • Manufacturer sends back confirmation of order. This has the Manufacturers Order Number (to be recorded in a SOP User Defined Field)
  • Any necessary changes are made to the Order
  • Manufacturer sends notification of shipment to ACME, and sends Invoice and Product to Customer
  • A Commission Invoice is automatically created in AR for the commission due on the items fulfilled by the shipment
  • When the Order is completely Invoiced it will move to history
  • Manufacturer send payment for Commission, which is applied to the AR transaction.


Design Specification