why req MIGO and MIRO in third party scenario

[Former Member]

Hello All,

In third party scenario why we req to do MIGO in ref to PO.

In 3rd party we create sales order with item cat TAS.

We got the PR

with ref to PR we create PO.

then we do MIGO and MIRO

also If vendor is delivering the goods why we do the Delivery and PGI and then Invoice

Why not Invoice with ref to sales order.

regards,

abhijit

[Former Member · Accepted solution]

Hi

In Third Party sales, the Item category is TAS ,if the Vendor directly supplies to the end customer.

In Item category TAS, "Billing Relevance" is "F", i,e. Order related billing as per invoice quantity.

If the Item category of the Third Party item is TAS, then Schedule line category is CS in standard. If you will go to CS, you will find , the "Delivery relevance" field is blank and there is no "Goods movement" also. That means no Delivery takes place against the Sales order, so no goods issue.

This clearly indicates, we do not create any Delivery and no goods receipt takes place in third party sales process, when the vendor directly sends the goods to the customer.

Once the goods are send to the end customer, Vendor creates an invoice and sends to the ordering company. Now, ordering company goes for Invoice verification ,what the vendor has sent to him. We only go for MIRO here and not MIGO.

After that, the ordering company, creates the Customer invoice with reference to the Sales order(placed by its customer) and sends it to its customer.

Complete process:

Once the order is received from the custome(say ABC)r, the company (say XYZ) creates a Sales order ---> Purchase requisition is automatically triggered from the sales order -

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> from this Purch requisition a PO is created for the vendor -

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> aginst the PO, Vendor delivers the goods to the customer ABC and charge the ordering company,sends invoice for the same to the ordering company XYZ -

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> Ordering company XYZ does Vendor's invoice verification and creates a Customer invoice with reference to customer's(ABC) order and sends to the customer ABC.

Some times Vendor sends the goods to the ordering company and then ordering company delivers the goods to its customer.

Vendor does not deliver directly to the end customer in this case.

In this case Item category is TAB and Schedule line category is CB.

Here, Billing relevance is "A" - (Delivery related billing) in the Item category TAB, that means here Delivery takes place and Billing is created with reference to the Delivery created to the customer.

In Schedule line category CB, you will find, 'Delivery relevance" field is activated and there is a movement type "601".

So, Delivery and goods issue both takes place here.

Here we go for both MIGO and MIRO.

[Former Member]

good answers....

[former_member184555]

Hi

Since the delivery is not in our control in the case of third party order processing,

1. Before creating the invoice to our customer, it is always good to check how much quantity was invoiced to us by the vendor. This can be possible if MIRO is done. If this kind of checking is not required, the billing relevance field in item category can be changed accodingly, as explained in the above post.

2. During MIRO, we should cross check the quantities invoiced by the vendor and the quantities actually sent to our customer. This check is possible if MIGO is followed. This will identify the differences between the quantity delivered and the quantity invoiced by our vendor. The check box GR in the purchase requisition specifies whether MIGO is required or not.

Thanks,

Ravi

[ajitsingh6]

Dear Abhijit,

Yes u are right that for third party sale for Item category TAS. *We should do direct billing rather than doing delivery and PGI but If you are following SO -- PRPOMIRO way.*

Once you are going for MIGO means you are according to SAP taking stock to your Plant rather than directly sending to customer from vendor and if you are taking stock in then need to do PGI.

In SAP you can follow both way but as per Third Party sale definition you should follow first one.

Regards

AJIT K SINGH

HAPPY TO HELP U

[Former Member]

In short, as you mentioned, MIGO is not required, but for reporting purposes some companies prefer to statistical MIGO. MIRO is required because this is the Vendor invoice verification, as normally you do for all PO's and billing is done to the customer. SO there is a difference between MIRO (Vendor inoice) and the one you create in VF01.

Hope this explains

Chandra Kiran

[Former Member]

Hi,

In thrid party scenario, whenever SO is created, PR will be created automatically with the delivery address as Customer Address... and PO will be created to the Vendor...

Now Vendor will deliver the goods to the customer as per the delivery address maintained in the PO... Also the same vendor will inform the company about the supplied goods to the customer... So now the Goods reciept will be posted with MIGO. This is not to update stock but to update the statiscal information that the so much of goods has been procured from that vendor...

After that Vendor will send an Invoice to the company and the same will be posted with MIRO....

Now we need to create a Invoice to the customer and there is no Delivery or PGI required here...

Regards,

Muthu