Third party process - error

[Former Member]

Dear all,

In the third party process, have we to create outbound delivery?

I have created PO from PR of a third party sales order. And now, i don't understand to delivery to customer.

Pls tell me solution.

If we have to create outbound delivery from that sales order, i get errors:

Item category TAS is not defined and Item category TAS is not defined, so item 000010 will be disregarded. I also checked in VOV4, VOV6, VOV7.

Thank you,

[former_member550050 · Accepted solution]

Hi

In third party scenario the material is delivered to your customer thro out side vendor

You are billing your customer

Vendor is billing you for the material he has delivered to your customer

Here we dont make any delivery

Process Flow for 3rd Party Sales

Customize the third party sales in summary:

1. Create Vendor XK01

2. Create Material u2013 Material Type as "Trading Goods". Item category group as "BANS".

3. Assign Item Category TAS to Order type that you are going to use.

4. A sale order is created and when saved a PR is generated at the background

5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

7. Goods receipt MIGO

8. Goods issue

9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the configuration and, therefore, there is no delivery process attached in the whole process of Third party sales.

10. Billing

SD - 3rd party sales order Create Sales Order

VA01

Order Type

Sales org, distribution channel, div

Enter

Sold to

PO #

Material

Quantity

Enter

Save

SD - 3rd party sales order View the PR that is created with a third party sales order

VA01

Order Number

Go to Item Overview

Item ->Schedule Item

SD - 3rd party sales order View the PR that is created

ME52N

Key in the PR number

Save

SD - 3rd party sales order Assign the PR to the vendor and create PO

ME57

Key in the PR number

Toggle the "Assigned Purchase Requisition"

Execute

Check the box next to the material

Assign Automatically button

Click on "Assignments" button

Click on "Process assignment"

The "Process Assignment Create PO" box , enter

Drag the PR and drop in the shopping basket

Save

SD - 3rd party sales order Receive Goods

MIGO_GR

PO Number

DN Number

Batch tab , click on classification

Serial Numbers tab

Date of Production

Flag Item OK

Check, just in case

Post

Save

SD - 3rd party sales order Create Invoice

MIRO

Invoice Date

Look for the PO , state the vendor and the Material

Check the box

Click on "Copy"

Purchase Order Number (bottom half of the screen)

Amount

State the baseline date

Simulate & Post

Invoice Number

*Invoice blocked due to date variance

SD - 3rd party sales order Create a delivery order

VL01N

In the order screen , go to the menu Sales Document , select "Deliver"

Go to "picking" tab

State the qty and save

SD - 3rd party sales order Create a billing document

VF01

Ensure that the delivery document is correct in the

Enter

Go to edit -> Log

Save

Hope the process is very clear to you now

Regards

Raja

Edited by: ramanathan raja on Sep 18, 2008 3:06 PM

[Former Member]

Hi,

You can't delivery the goods ordered by your customer due to Shortage of stock at that time you will create a purchase Order to your vendor and ask him to send the goods to your Customer.

Vendor delivers the goods to your customer and bills you.

It occurs like:-

(1)The customer sends the sales order to you.

(2) You will send a Purchase order of the same material to a vendor known as third party here.

(3)The vendor will send you the invoice for the order.

(4) The vendor will ship the products to the customer.

(5) You will bill the customer.

The processing of third-party orders is controlled via material types.

Material types define whether a material is produced only internally can be ordered only from third-party vendors, or whether both are possible.

For example, a material that is defined as a trading good can only be ordered from a third-party vendor.

Third-party items can be created automatically by the system, depending on how your system is set.

However, you can also change a standard item to a third-party item during sales processing manually.

If a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item.

During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS.

To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.

In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing.

For a material that you normally deliver yourself, you specify the item category group NORM in the material master.

If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.

Plus in the material master also you need to do certain settings.

1) If you are always following a third party process for a material then you have to create the material using item category group BANS. The procurement type should be marked as external procurement (F) in MRP 2 view of the material master record.

2) If you are not always allowing third party order processing then you can create a material master record with item category group as NORM and the procurement type should be marked as (X) meaning both types of procurement (in house manufacturing and external procurement).

In the item category the billing relevance should be 'F'. Order related billing document.

Thanks

Bhushan

Edited by: Bhushan S Dhake on Sep 18, 2008 1:08 PM

[Former Member]

Hello,

You can't create an outbound delivery of a third party item. As you know well, the goods will be delivered by the External vendor to the customer. So there is no question of a delivery happening from a third party item (TAS).

If you wan to have the scenarion like.. the vendor delivers the goods to you and you deliver the goods to customer, then try individual purchase order.

Prase

[Former Member]

Hi there,

I guess in your 3rd party transfer, the vendor sends the goods to you, & then you create a delivery from yor plant to the customer. After you receive the goods from thevendor, then you do a GR sothat stock is available in your plant.

If this is your process, then define TAS as delivery item catg in 0VLP. then do the delivery item catg determiantion in the same way as you did the item catg determination in sales order. Only then system will allow you to create delivery.

In case your vendor ships the goods directly to your customer, then there is a different delivery type for that not the standard LF. Even in that case, you need to define item catg for delivery for eg ZNLN & then do the item catg determination for ZNLN.

Regards,

Sivanand

[Former Member]

Hi Sivanand,

Pls give me details field that i have to enter value 0VLP.

Thanks,

[Former Member]

Hello,

If ur requirement is to create Delivery in Third Party, Create the Material with ITEM CATEGORY GROUP BANC then Item Category TAC will be determined.

Now u can create Delivery w.r.t. S.O.

Regards,

Srinivas

[Former Member]

Hi Quang,

In third Party you dont have to create outbound delivery W.r.t to sales order, In this 3rd party will deliver the goods to cutomer.

1.After creatin PO with ref to PR.

2. Use Trans code MIGO---i.e. Goods receipt virtually to your company .

3. Then Use MIRO..i.e invoice verification which your vendor will raise to your company.

4. then Do Billing to customer through VF01..which is order related billing.

Hope it helps.

Revert if not resolved.

Regards

Amit Gupta

[former_member550050]

Third party order in Sales (in case of external procurement)

In this business scenario Company A accept the sales order of customer and asked third company/Vendor to deliver the goods and bills you. Subsequently you raise the invoice to the customer

.

In this scenario Material type plays important role. While creating material in material master , material type to be selected as Trading goods and Item category group is BANS in sales :Sales org 2 tab and Procurement type to marked as F in MRP 2 Tab.

Item category - TAS - Maintain Billing relevance in VOV7 as F.

Schedule line category- CS-This is standard schedule line category is provided by SAP for Third party Sales.If you need to change, copy it and make necessary changes.

CS triggers purchase requisition automatically in the back ground when save the sales order.

Assignment - CS to TAS in VOV5 and TAS to your order type in VOV4.

Company A creates Sales order and Saves it. As soon as it is saved Purchase requisition is created in the back ground (Due to schedule line category)and authorized person converts it to purchase order and ask vendor to supply the goods to the customer. The vendor sends the bill to the company A. Company verifies the Invoice and raise invoice to the Customer.

The sequence of T-codes is VA01- ME21N- MIRO-VF01

It is assumed that MM and SD module are in place

Hope this process is clear to you now

raja.

[Former Member]

P/S: and what is billing created from? Sales order document or Outbound delivery?

Thanks,

[Former Member]

Hi,

Sales order document.

as you are not giving any delivery to customer. we do only statisticallly Gr and invoice verification by MIRO/MIGO

Thanks,

Raja