Third party cycle

[Former Member]

Dear All,

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 ?

regards,

[Former Member · Accepted solution]

Hi Rohit,

Process Flow for Third party process with SD-MM Integration

Customiztion requires is

1) Defining the Purchasing org,Purchasing group,

2) Assign the Purchase org to company code

3) Assign Purchase org to plant,

Material type used should be Trading goods -- HAWA

1. Create Vendor XK01

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

3. Assign Item Category TAS to Sales Order type

4. Sale order is created and in the background a PR is generated

Note down the PR number along with Sale order no

5. With reference to PR a PO is created (ME21N).

PO will be sent to the Vendor with delivery address as your Customer.

5.5) You cannot view the PR. Becoz it was created with schedule line categoryof sales order CS which was maintained in VOV6 and that

is not your company's or plant's PR.

6. Vendor delivers the goods to the Customer and raises Invoice to the Plant.

7. Goods receipt MIGO & stock update in the Plant ( Not physically)

8. MIRO for Vendor to clear the Payment

9. Create the outbound delivery for sales order

10. Post Goods issue for delivery

11. Billing for the customer

Regards,

Prasath

[Former Member · Accepted solution]

Deat prasath sir,

Just elobrate points 9, 10.

Regards

[former_member659143 · Accepted solution]

Hi,

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.

1.Manual GR.

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.

Thanks,

AMIT

[Former Member]

Hi

In MM02 - Sales org.2 mainatian item category group as BANS.

In SPro- Sap IMG- Sales distribution -sales documcnt- sales document item - assign item categories

In this mainatian the item category for your combination.

Then create sale order the material u mainatianed in VA01.

It will generate a PR.

Conver the PR to PO.

Then do the Invoice. GR not necessary.

Check it out.

Regards,

Raman

[Former Member]

Create materail master with material type HAWA (Trading goods) and Item Category in Material master BANS.

Also create PO with Account assignmnt category 'C' item category 'S (Third party)' also put the sales order no. in Account assignment tab of PO.

This is the cycle for Third party in SAP.

Best regards

Vineet Baweja