Third party cycle
As per my knowledge , third party cycle is defined as inspite of providing goods directly to customer , organization do it by introducing a third party called vendor who directly supplies to customer and produces invoice of same to organization. Can anybody explain the total workflow like what things are needed to be created in this cycle and for whom like po , sales order and others ?
Third-party sale order process passes through SD to MM module. By creating a third-party item in a sales order, purchase requisition, or purchase order, you can request that the vendor sends the goods directly to your customer. A document can consist of one or more third-party items.
Process Flow for Third party process with SD-MM Integration
Step1: Your organization structure should be ready before defining the Third party sales process.
Step2:Create Sales Order: Based on the customeru2019s purchase order we create sales order in the SAP system. Now if the customer supports EDI then creation of the sales order in SAP can be automated through customer inbound EDI.
While creating the sales order we need to specify the item category as u201CTASu201D or u201CZTASu201D. TAS is a standard item category provided by SAP for 3rd Party Sales Order. Ideally we copy and create our own u201CZTASu201D item category.
Now while saving the sales order system automatically creates purchase requisition against the sales order in the background due to TAS/ZTAS item category.
Step3:Create Purchase Order
Once the purchase requisition is created, we take that purchase requisition and convert into purchase order for the vendor who is going to supply those materials to the customer. The creation of purchase order can be automated by maintaining relevant master data.
In this case the account assignment category in the purchase order should be u201CYu201D and item category in the purchase order should be u201CSu201D.
These account assignment category and item category will control subsequent flow in the process.
Agin if vendor is on EDI then go for EDI settings.
Step4:Delivering Goods to Customer
Once vendor receives the PO, vendor ships the goods directly to the customer as per the guideline provided on the PO.
Step 5:Goods Receipt (GR)
GR can be done either of following 2 ways.
2.You can also Automate the GR:
This GR will have financial posting in such a way that no posting will happen to Inventory account rather it will directly post to COGS account.
Step6:Entering Vendor Invoice :
The vendor sends you an invoice. You enter the invoice receipt in Invoice Verification. The invoice receipt is necessary (Based on the setting made at item category level) before a billing document can be created in SD.
Step7:Creating a Billing Document for the Customer.
Above is the whole process of Third party sales.