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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
Thread Title: Negative PO's
Created On Wednesday June 27, 2012 5:44 PM
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COBOYD


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Joined: Apr 2009

Wednesday June 27, 2012 5:44 PM

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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.

coboyd

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Paul_M


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Thursday July 05, 2012 10:16 AM

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This is pretty confusing as described. Could you explain what is the purpose of issuing the “negative” PO to B? How does B get paid in this scenario?

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COBOYD


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Thursday July 12, 2012 6:04 PM

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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.

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DISCUSSIONS > IIA GENERAL DISCUSSION AREA [ REFRESH ]
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