The advantage of a call contract is that the supply of materials can be provided on multiple delivery dates, which means that a customer is not required to hold a surplus on site (. B, for example, all bricks needed to build a residential complex; instead, they can recover shares as soon as they are needed. With respect to bulk goods, the question was raised as to whether there could be a stock-calling regime for several purchasers considered for a particular type of bulk commodity. This would be possible if an expected volume per customer was determined in advance, i.e. at the time of freight transport. Other questions related to the calculation of the 12-month period for bulk goods or continuing shipments (for example. B of oil). The Commission referred to the FIFO-LIFO methods and presented the FIFO method as probably the most appropriate method for this particular situation. We are often questioned by suppliers who are new to the market, what it really means and how long it takes to buy. One of the most common stumbling blocks is the appeal contract. There`s a bit of… Simple: Stop contracts are individual contracts under the framework contracts. An appeal order can be used in cases where it is proven that document processing needs to be reduced, for example.
B when the number of invoices issued must be reduced by consolidated invoices. It also reduces the management required to process multiple orders. Orders and invoices are increased in the manner they are needed until the end of the year is reached or the maximum market value is reached. Another important advantage is that call agreements are often negotiated with pre-set prices that can offer discounts on mass orders. This is also advantageous for suppliers who will be guaranteed the day-to-day activity for a certain period of time. Further discussions have taken place on accounting methods to be used (LIFO – FIFO) for bulk products, as this could affect the calculation of the 12-month limitation period beyond which goods can remain under the call stock agreement. Some members argued for a binding approach, while others argued that it should remain a business decision and that it be consistent with accounting law. Concerns were also expressed that in the event of loss, destruction, theft and storage stocks, storage agreements would no longer apply. As mentioned in the first paragraph of this article, the European Commission has published “quick fixes” for cross-border trade and VAT, including the new simplification of VAT.
These new rules provide that the transfer of goods without transfer of ownership is not considered an intra-community transaction for the supplier, but that there is an intra-community delivery in the EU`s country of departure and an intra-community acquisition in the UNION`s country of arrival at the time of the “recovery” of the product by the stock customer. There is a 12-month deadline to implement the simplification and some other conditions must be met. For example, the supplier and the customer must keep a registry that meets certain conditions. In addition, the supplier must declare the transfer in the EC`s sales list. The new VAT regime will come into force on 1 January 2020. As part of an organization`s buying and purchasing strategy, purchasing companies need to think about how to buy and buy products and the format in which contracts with suppliers need to be settled.