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Difference between Sold to Party and Third party

Former Member
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Hi Experts!

               I am confused with Sold to Party and Third Party.Could anyone explain me the exact explanations for sold to party with real time examples?

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Answers (2)

Answers (2)

Former Member
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hi Vinoth

Sold to party is the customer who places the order. Sales area of the order will be as per the sales area of this customer. One sold to party might have multiple ship to / bill to or payer customers assigned to them. But Sold to party will be unique.

we cannot create a sales order without sold to party.

Third Party - this is an entity which will play a role in between the Sales organisation and Sold to Party.

Third Party scenario can be explained as follows:

Customer (Sold to party A) places order to Sales organisation A. there will be another plant B "Not assigned to" Sales Org A that will fulfill the order. because the plant B is not assigned to Sales Org A, such plant will be called as Third Party.

the scenario is called as "Third Party Scenario" in SAP SD.

Hope this is helpful.

Regards

Jayshree

Former Member
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Thank you Madam.

Former Member
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Hi Vinoth Venkat,

Sold to party - A entity who places an order. It can perform the functions of ship to pary, bill to party and  payer.

Third Party is business process where business get order from customer and it passes the order to third party (act as vendor)  who directly delivered the goods to customer and bill to business not to the customer.

Former Member
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Thank you Sir