DC1 Help Centre 12.0

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The term 3-party sales can be found in, e.g., the EU VAT sales report. In DC1 Distribution you use the BtB order routine to handle this type of sales. The EU VAT sales report does not concern purchases.

You report 3-party sales on the EU VAT sales report when you deliver goods from a supplier in an EU country directly to a customer in another EU country, i.e. you do not receive the goods to your warehouse.

The only differences between normal sales order handling are:

You have to enter a BtB direct sales order.
You have to enter a warehouse for the sales order lines on the BtB direct sales order which is defined with the same country as the supplier who delivers the goods to the customer. See Work with warehouses.
Your company does not declare BtB direct deliveries on the Intrastat declaration.
Note: The only exception to this would be if your company has ordered that a BtB direct delivery of goods be shipped from a supplier (located in another country) to your customer (located in your country). Since your company is the one receiving an invoice from a foreign country then you will have to make an Intrastat declaration.
The export code on the sales order header is not retrieved according to the normal rules, which are described in Country/country VAT codes table. Instead, the export code set to NO for Intrastat and YES for EU VAT sales report is automatically retrieved. For more information see VAT import/export codes table.

Note: For more information about BtB orders, see About processing Back-to-Back (BtB) orders.

The following will describe how to enter the BtB direct order. You will enter a BtB direct sales order where the supplier is located in France and the customer is located in Germany. To exemplify, assume the following applies:

System company is Great Britain.
A BtB purchase order type with direct delivery exists in the Purchase order type table.
A BtB sales order type connected to the above mentioned purchase order type exists in the Sales order type table.
A customer with a delivery address in Germany exists in the Business partner file.
A supplier with order address in France exists in the Business partner file.
A warehouse located in France exists in the Warehouse table.

Note: A warehouse defined with country France must exist because the supplier which delivers the goods to the customer is located in France. This means that you have to set up one warehouse for each country where you have suppliers delivering direct to your customers. If you do not have any other business activities in such warehouses, except for those BtB orders, these warehouses will be fictitious.

Select the Work with sales orders menu item.
On the initial panel, click Add.
You access Work with sales orders, create new. Complete the following:

Handler: Enter your signature.
Customer number: Enter a customer which has a delivery address in Germany.
Order type: Enter an order type with BtB direct delivery.
From warehouse: Enter a warehouse code which is defined with country France in the Warehouse table. This is because the supplier delivering the goods to the customer is located in France.; Note: Even if you do not have any business activities at a warehouse in France, i.e. you do not have a warehouse code for a French warehouse, you have to put up such a warehouse code in the Warehouse table for this kind of order.

Click OK.

You access Order lines.

Warehouse: Make sure that the warehouse is located in the same country as the delivering supplier.
Item: Enter the item code.
Quantity: Enter the quantity.

Click OK to update the order line. Click Close order to exit the order.

Depending on the order types, different scenarios apply. For more information see Work flow for Back-to-Back (BtB) orders with direct delivery and Work flow for Back-to-Back (BtB) orders with transit delivery

Order status 60
When both the BtB purchase order and the BtB sales order have reached status 60 (i.e. complete), and the accounting transactions are transferred to DC1 Financials, you will be able to print an EU VAT sales report.

What is updated

The system will update the following files which are involved in the EU VAT sales report:

VAT file
A/R Transaction file
A/R Transaction file, EU VAT information
A/R Transaction file, invoices

Note: Nothing will be updated in the EU Statistics file, since Intrastat should not be declared for 3-party sales orders.

In the A/R transaction file, invoices panel, the system will update the EU VAT rep act code field with the code T, which means that the invoice is a 3-party sales transaction. Note: If this field is completed with another code, or if the field is blank, the invoice will not be handled as a 3-party sales transaction on the EU VAT sales report. For more information see Maintain EU statistics in A/R.

When printing the EU VAT sales report

When you print the EU VAT sales report for 3-party sales invoices, you have to select the country where the delivering supplier is located, because the warehouse on the BtB sales order line is located in the same country as the delivering supplier.

Example:

If the BtB direct sales order is delivered from a supplier located in France, you should select the FR country when you print the EU VAT sales report.

If the BtB direct sales order is delivered from a supplier located in Germany, you should select the DE country when you print the EU VAT sales report.

For more information see Print an EU VAT sales report control list and Print an official EU VAT sales report.