Supply Chain Transactional Roles - TX
From imde.io
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).
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 industry terminology.
| Buyer's Role | Seller's Role | Description of the Interaction |
|---|---|---|
| Sold-To-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. |
| 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 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. |
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. |
