Supply Chain Transactional Roles - TX: Difference between revisions

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In any supply chain transaction roles exist as corresponding pairs. These pairs represent the two fundamental sides of every exchange: the '''buying party''' and the '''selling party'''. A ''"Party"'' in this context refers to a specific entity, which can be a legal company or an individual (e.g., in an e-commerce transaction).
In any supply chain transaction multiple roles exist as corresponding pairs. These pairs represent the two fundamental sides of every exchange: the '''Buyer''' (the buying party) and the '''Seller''' (the selling party). A ''"Party"'' in this context refers to a specific entity, which can be a legal company or an individual (e.g., in an e-commerce transaction).


Understanding these direct counterparts is key to mastering the data flow for orders, shipments, and invoices.
Understanding these direct counterparts is key to mastering the data flow for orders, shipments, and invoices.
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=== Core Transactional Pairs ===
=== Core Transactional Pairs ===


The following table outlines the primary roles using a consistent, parallel naming convention. The description explains how these roles map to standard industry terminology.
The following table outlines the primary roles using a consistent, parallel naming convention. The description explains how these roles map to standard ERP and industry terminology.


{| class="wikitable" style="width:100%;"
{| class="wikitable" style="width:100%;"
|-
|-
! style="width:20%;" | Buyer's Role
! style="width:20%;" | Buyer's Role
! style="width:20%;" | Supplier's Role
! style="width:20%;" | Seller's Role
! Description of the Interaction
! Description of the Interaction
|-
|-
| '''Sold-To-Party'''
| '''Sold-To-Party'''
| '''Sold-By-Party'''
| '''Sold-By-Party'''
| The '''Sold-To-Party''' is the customer entity placing the order. The '''Sold-By-Party''' is the selling entity, known in most systems as the '''Supplier'''. This pair forms the primary legal contract.
| The '''Sold-To-Party''' is the Buyer entity placing the order. The '''Sold-By-Party''' is the Seller entity providing the goods or services. This pair forms the primary legal contract.
|-
|-
| '''Ship-To-Location'''
| '''Ship-To-Location'''
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| '''Bill-To-Party'''
| '''Bill-To-Party'''
| '''Bill-From-Party'''
| '''Bill-From-Party'''
| The '''Bill-To-Party''' is the entity that receives the invoice. The '''Bill-From-Party''' is the entity issuing the invoice (the '''Supplier'''). The invoice must specify the '''Remit-To''' details, which are the instructions for where to send payment.
| The '''Bill-To-Party''' is the Buyer entity that receives the invoice. The '''Bill-From-Party''' is the Seller entity issuing the invoice. The invoice must specify the '''Remit-To''' details, which are the instructions for where to send payment.
|}
|}


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| '''Accounts Payable (AP)'''
| '''Accounts Payable (AP)'''
| '''Accounts Receivable (AR)'''
| '''Accounts Receivable (AR)'''
| These are the mirror-image departments. The buyer's '''AP''' department processes incoming invoices and executes payment. The seller's '''AR''' department creates invoices and manages the collection of payments.
| These are the mirror-image departments. The Buyer's '''AP''' department processes incoming invoices and executes payment. The Seller's '''AR''' department creates invoices and manages the collection of payments.
|}
|}


[[Category:Taxonomy]]
[[Category:Taxonomy]]

Revision as of 07:51, 26 September 2025

In any supply chain transaction multiple roles exist as corresponding pairs. These pairs represent the two fundamental sides of every exchange: the Buyer (the buying party) and the Seller (the selling party). A "Party" in this context refers to a specific entity, which can be a legal company or an individual (e.g., in an e-commerce transaction).

Understanding these direct counterparts is key to mastering the data flow for orders, shipments, and invoices.

Core Transactional Pairs

The following table outlines the primary roles using a consistent, parallel naming convention. The description explains how these roles map to standard ERP and industry terminology.

Buyer's Role Seller's Role Description of the Interaction
Sold-To-Party Sold-By-Party The Sold-To-Party is the Buyer entity placing the order. The Sold-By-Party is the Seller entity providing the goods or services. This pair forms the primary legal contract.
Ship-To-Location Ship-From-Location The Ship-From-Location is the physical place where the shipment originates (e.g., a warehouse or factory), often called a Shipping Point. The Ship-To-Location is the destination where the goods are delivered.
Bill-To-Party Bill-From-Party The Bill-To-Party is the Buyer entity that receives the invoice. The Bill-From-Party is the Seller entity issuing the invoice. The invoice must specify the Remit-To details, which are the instructions for where to send payment.

Financial Department Pairs

These roles represent the internal functions within the buyer and seller organizations that handle the financial settlement of the transaction.

Buyer's Role Seller's Role Description of the Interaction
Payer Payee The Payer is the entity making the payment. The Payee is the entity that receives the payment. These roles are determined by the financial transaction itself.
Accounts Payable (AP) Accounts Receivable (AR) These are the mirror-image departments. The Buyer's AP department processes incoming invoices and executes payment. The Seller's AR department creates invoices and manages the collection of payments.
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