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GR in Third Party Process

former_member223456
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Friends

I read threads regarding Third Party Process but it made me more confused. Jus want some clarification.

1.Does GR take place in third party process or not and if not then how can we make it happen.

2.We want customer invoice to be created before MIRO. Can we do it. If yes then how.

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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hi

in third party sales process item category from sales order will automatically prompts the system to create a purchase requisition. with ref this purchase requisition PO will be created. here the vendor will deliver the goods to the customer directly and provieds us with shipping notification and later invoice.

Once we get the invoice/pod from the vendor in our system will create a static delivry and create an invoice with refrence to that

former_member223456
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But what in case of Third Party processing without shipping notificatio?

Answers (4)

Answers (4)

Former Member
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This message was moderated.

former_member223456
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thank you

Former Member
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Reply to Query 1

After creation of the inbound delivery, a statistical goods receipt is posted automatically. This goods receipt does not trigger any inventory management goods movements. It is only required so that it can be posted (statistical goods receipt), since this allows invoice verification with reference to the purchase order. Since a third-party order involves a movement from the vendor direct to the customer, Inventory Management is not in any way affected. If you wish to document the movement in the system, however, you can create a goods receipt for the third-party order.

TAS Third party Item category is linked with Schedule line Category CS in SPRO .

Schedule line category CS is assigned to Item cat = 5 .This 5 get linked to Goods receipt with reference to a purchase order through

MM>Purchasin>Statistic-->assign update groups to item category

Reply to Query 2

As per the SAP best practice it is recommended to perform MIRO before billing for the same only Item category TAS (Third party item) is set up with billing relevance "F" in the standard system.

(F: Order-related billing doc. - status according to invoice quantity)

This is relevant for order-related billing documents based on the invoice receipt quantity (third-party business transaction). The system transfers the order into the billing due list only after the vendor invoice has been received and processed in the purchasing department. After the receipt of each invoice, a customer invoice is created for the quantity that appears on the vendor invoice. The order has status "Billed" until the next vendor invoice is received.

This process can also be related to the quantity of goods receipt.

You can make the control setting as to whether the invoice receipt quantity or the goods receipt quantity should be relevant for billing in the copy control for billing on the item level in the billing quantity field.

(In Customizing, choose Sales and Distribution -> Billing -> Billing documents -> Maintain Copying Control for Billing Documents -> Copying Control: Delivery to Billing Document -> Item,

then select an item category.)

Former Member
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Hi,

1) There are two types of Third Party Processes: -

a) Third Party Process without Shipping Notification

b) Third Party Process with Shipping Notification.

Third Party Process without Shipping Notification

In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor.

The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document can only be created after entering the invoice from the vendor.

Process flow: Third party Sales Order --> Convert purchase requisitions to purchase order --> Approval of purchase orders --> Invoice verification --> Billing

Third Party Process with Shipping Notification

For this process, the vendor sends a shipping notification. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document is only possible after entering the invoice from the vendor.

The vendor then sends a shipping notification. After that a statistical goods receipt is posted. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document can only be created after entering the invoice from the vendor.

Process flow: Third Party Sales Order --> Convert Purchase Requisitions to Purchase Order --> Approval of Purchase Orders --> Post Statistical Goods Receipt --> Invoice verification --> Billing

So, technically the 3rd Party Sales w/o SN is commonly used - whereby no GR is required. GI and GR process is between the vendor and the customer in the Sales Order. Once customer confirmed received, only then there will be incoming invoice from the Vendor, which then MIRO and Billing follows..

2. Standard SAP practice.. it is recommended to perform MIRO before Billing, as the vendor has to advice us that our customer has received the goods of the quantity ordered, which only then we can bill the customer according to the quantity received by the customer.

Thanks.

Hope this helps.

Rgds.

former_member223456
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1. what setting we have to do to trigger statistical GR. I've heard its the GR indicator in PO. Is it correct.

2.As you said it is recommended to perform MIRO before billing . But I want to know is it compulsory. If not then how can we create customer invoice before MIRO.

Former Member
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1. what setting we have to do to trigger statistical GR. I've heard its the GR indicator in PO. Is it correct.

Goto sales order. Change item category from TAN to TAS. save. A PR is generated automatically. Convert PR into PO.

Now do MIGO for the PO. It will be statistical GR.

2.As you said it is recommended to perform MIRO before billing . But I want to know is it compulsory. If not then how can we create customer invoice before MIRO.

Its best practice because if you create customer invoice first of say Qty 20 & later Vendor sends invoice of Qty 18 then it causes problem. Its better to do MIRO first so that you know exact Qty sent by vendor to customer so that the customer inv reflects correct Qty.

regards