Can't determine consumption account for 3rd party non-stocked item?

[Former Member]

I am configuring a scenario where the we buy licences from a 3rd party and then sell them on so this is a 3rd party sales process. I want to create the POs automatically using ME59N directly from the PReq that is created by my sales order. To do this I need to use a material type that offers my the 'Auto PO' flag on the purchasing tab ... so NLAG (non-stocked) would seem to be the ideal choice however there is no 'Account category reference' assigned to NLAG as it comes out of the box and therefore I can't assign a Valuation Class to my material.

This in turn means that a consumtion account cannot be determined when I created my sales order for this line?

Can anyone advise please. Is there a better standard material type that would be a better for for this scenario or do I have to create a 'ZLAG' material type just to get around this?

Any help much appreciated?

[Former Member · Accepted solution]

hi,

this is to inform you that,

use NLAG - NON STOCK ITEM that means item will be there but it will not be taken into account for valuation of stock.

or

HAWA - trading goods - buy and sell the goods,

OR

even you can use HALB

as your process speaks about purchasing and selling the same with out any valuation of material from plant. so here valuation class is not requried. for analysis purpose you may use it.

regards,

balajia

[Former Member · Accepted solution]

Thanks balajia,

Yes - I had come to the same conclusion about HAWA and that works fine.

[reazuddin_md]

Hi patrick,

configuring a scenario where the we buy licences from a 3rd party and then sell them on so this is a 3rd party sales process

Buying License from 3rd Party & then selling it your Customer- If you are directly selling to the customer, then this is not considered as 3rd Party sales rather its either Trading sales or Selling of Services as there is no physical prroduct involved.

Can you confirm, how the procurement of license from 3rd Party is getting triggered? Are you procuring based on Customer Demand, if yes- Then its a kind of MTO process for service materials.

If you are procuring based on Customer demand & 3rd Party directly dispatching licenses to your cusotmer- then its 3rd Party sales ( I dont think, your vendor is dispatching license to your customer)

2 ways to achieve this,

1- Treate license as Trading material, Create Dummy material & create order for qtty=1 , then process this with MTO scenario

where after GR is done in OBYC, maintain the account determination so that it hits the Consumption acccount. account assignment category "M" will do the same in STD.

2- Treat license as "Service Material", create Sch.line category (Copy of "CB"), whenever you create order, auto PR will generate, Convert PR into PO- procure the license , Receive the license from Vendor & once its received wrt:Sales order- issue the same to the customer by creating delivery ( as its service item, there wont be any PGI document, only Service confirmatioin will be triggered) , issue the invoice.

Regards,

Reazuddin MD

[Former Member]

Hi Reazuddin MD

I really appreciate your time to reply to this - some interesting stuff here but as I said to earlier post I found that HAWA worked fine for me.

The scenario is triggered by a customer sale and we take delivery of a 'licence pack' which we pass on - this has no intrinsic value in and of itself although obviously it has a cost and that was why I picked NLAG. I would still see this as a 3rd party sale u2013 do you agree? But you suggest this would be better managed by a service material u2013 is there a good reason why that would be better than using HAWA (not relevant for delivery).

Regards.

Patrick.

[reazuddin_md]

HI Patrick,

This is because license is not physically maintaiend. its providing service to the customer which can be charged.

But in your case, you are procuring service from the your vendor & selling it to your customer. If you are directly selling it to your customer,as I already said my above reply- It cant be 3rd Party sales. It can be either Trading sales(Matetrial Type:HAWA) or sales of service.

DIfference between Trading sales & MTO sales:- in MTO procurement triggers from by the CUstomer order & respective stock reserved against this Order & item. Where as in Trading, procurement happens based on demand/forecasting & procured goods/services can be sell to any prospective Customer.

( Hope you are already aware , that in 3rd Party, your vendor releases the goods/services to your customer)

Hope its clear now.

Regards,

Reazuddin MD

[Former Member]

Hi Reazuddin MD,

Once again many thanks, this is helpful.

The last time I worked on a process similar to this one we refered to it as Back-to-Back Direct (3rd Party Sale) & Back-To-Back to Stock (MTO) so I was was using the term 3rd party just to indicate that the Sales Order was the trigger for a related PO placed with a third party vendor but now I'm clear on the difference I wont make that mistake again

Regards.

Patrick.