on 07-11-2007 11:40 AM
Hi All,
Can u tell me the <b>difference between Intercompany sales & 3rd Party sales process ?</b>
My id : raaj_sap@rediffmail.com
Appreciate your information and will definitely reward points.
Regards
Rajarshi
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. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.
The processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, if you manufacture your own finished products, you may also want, from time to time, to be able to order the same type of product from other vendors.
Intercompany business processing describes business transactions which take place between two companies (company codes) belonging to one organization. The ordering company orders goods from a plant which is assigned to another company code.
Intercompany sales processing consists of the following three stages:
Processing sales orders
Processing deliveries
Billing
The sales organization and the plant are assigned to different company codes and have the following responsibilities:
Sales organization:
Processes the sales order
Bills the customer
Plant:
Delivers goods to the customer
Bills the ordering company code (sales organization) - this is intercompany billing.
Intercompany billing uses SAP EDI to carry out posting to vendor account for the ordering company code.
A sales organization which is assigned to the ordering company code creates a sales order ordering goods from a plant assigned to another company code.
The plant in the delivering company code delivers the goods to the customer for whom the sales organization placed the order.
Intercompany stock transfer
A purchasing organization which is assigned to the ordering company code creates a purchase order ordering goods from a plant assigned to another company code.
The plant in the delivering company code delivers the goods to the plant for which the purchasing organization ordered the goods.
Because the two companies balance their accounts independently, the delivering company must bill the ordering company for the goods. This internal billing transaction is carried out by means of an intercompany billing document. The delivering company bills the ordering company at a price that allows the delivering company to cover its costs.
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Incase of Intercompany Sales, the sale transaction takes place within the group company, whereas in 3rd party, the customer is an external entity.
In 3rd Party scenario, due to non-availability of material or material not being manufactured by us, the same is passed to our vendor & vendor supplies the same to our customer, on our behalf.
Regards,
Rajesh Banka
Reward suitable points.
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Hi Rajarshi,
Intercomapny sales
the sales org which receives the order and the plant from where the supply happens are of different company codes but belong to the same group.
Third party sales
the company receives an order from customer and places order on vendor. the vendor directly supplies product to our customer.
reward if useful
Regards
S Pradeep
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SENT MAIL REWARD IF HELPS
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