I am looking for anyone who is supporting an operation in China.
This doesn't have to be a manufacturing site, it can be almost any sort
of "office" that has transactions between them and the USA.

We want to discuss various business processes, and what you have learned
and/or problems you are still dealing with.
Some specific examples are:
- Revenue recognition in China vs USA.  Implications of recent Chinese
tax law changes and what that means to the corporation.

- working with suppliers to sell to China.  We are finding a
considerable number of suppliers that do not want to sell to (and be
paid by) our China operation.
They instead want to sell to the USA operation and then let us
"transfer" the material to China.

- Automating the transaction sequences required when we process "flow
through" transactions.  We have two specific types of these.
a) A purchase order placed in the USA for product that is purchased from
the China operation.  When the SO is booked, we turn around and issue a
PO to 
the China operation for the material, and they then enter an SO to the
USA operation for the products, and then proceed to make them.  They
will then either ship 
the product directly to the end customer (drop ship) and invoice the USA
office of our company (per the SO), or they will ship the product to the
USA office of
our company and invoice us also.
b) Our China operation issues a PO to the USA office because the vendor
(located outside China) will not sell directly to the China operation
for any of several reasons.
We then must enter an SO in the USA and then create a PO to the vendor
for the materials.  We then must receive the materials and then ship the
materials to China (at least transactionally because the vendor may be
willing to drop ship the materials to our China office) and process
payment to the vendor and issue an invoice to our China office.  Then,
they (China) must receive the materials and process payment to us.

As you can see both of these cases create LOTS of non-value added
activity that we are looking to eliminate.

We seem to run into "roadblocks" at every turn, and want to understand
how others have overcome these obstacles.  We find it hard to believe
that with so many foreign companies setting up operations in China, that
all of them are going through the same "gyrations" we are. 

******************************
Terry W. Simpkins
Director ISIT
Measurement Specialties
757-766-4278
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******************************

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