I ran into an interesting scenario and am wondering if any other company's do this: A buys wigets from B (has a negotiated contract to procure 1 million wigets in a given year) B sends wigets to C (who is contracted with A to make a product that includes the wiget in it) A uses a negative PO to B A then issues a PO to C to get payment for the widgets
Anyone else run into this? Any legal considerations to be aware of ? Thanks for the help.
Sorry it has taken so long to get back on this. The purpose of the negative PO is to basically wipe it clean, so to speak, in that it offsets the orignal PO. The original PO is a way to send a signal / notification to get the product shipped from B to C. When I said "A uses a negative PO to B", I meant to say issues, not uses.