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Third party

Former Member
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hi one and all

can any one give me a clear idea about third party and prerequisites .thanks in advance

Accepted Solutions (0)

Answers (7)

Answers (7)

former_member227476
Active Contributor
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dear marven

THIRD PARTY SCENARIO

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.

Process Flow

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.

Processing Third-Party Orders in Sales

Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.

Automatic third-party order processing

If a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.

Manual third-party order processing

In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.

If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.

If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.

You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.

Processing Third-Party Orders in Purchasing

When you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.

Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.

All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order

You process third-party items by creating a normal sales order. In overview for the order, you can then overwrite the default item category (TAN in the standard system) with the special item category for third-party items: TAS

Billing Third-Party Orders

If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If, however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F.

In the first case, the third-party order is considered to be completely billed only when the invoiced quantity equals the order quantity of the sales order item. In the second case, each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the next vendor invoice is received.

If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.

You can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in Customizing for copying control for billing at item level.

FOR YOUR PROCESS Individual Purchase Orders WELL GIVE THE RIGHT SOLUTION

Individual purchase orders are used when your customer orders goods from you that are not in stock and must be ordered from one or more external vendors.

Process Flow

During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the vendor ships the goods directly to you (unlike third party order processing, where the vendor ships directly to your customer). You then ship the goods to your customer. While the goods are part of your inventory, you manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be used for other purposes.

Process Flow for 3rd Party Sales

Customize the third party sales in summary:

Prerequisites for 3rd party sales,

Purchasing org,

purchasing group,

assign the Purchase org to company code

assign Purchase org to plant,

should not maintain the stock in material, it should be trading goods,

1. Create Vendor XK01

2. Create Material – Material Type as "Trading Goods". Item category group as "BANS".

3. Assign Item Category TAS to Order type that you are going to use.

4. A sale order is created and when saved a PR is generated at the background

5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

7. Goods receipt MIGO

8. Goods issue

9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

10. Billing *--

SD - 3rd party sales order Create Sales Order

VA01

Order Type

Sales org, distr chnl, div

Enter

Sold to

PO #

Material

Quantity

Enter

Save

SD - 3rd party sales order View the PR that is created with a third party sales order

VA01

Order Number

Goto Item Overview

Item ->Schedule Item

SD - 3rd party sales order View the PR that is created

ME52N

Key in the PR number

Save

SD - 3rd party sales order Assign the PR to the vendor and create PO

ME57

Key in the PR number

Toggle the "Assigned Purchase Requisition"

Execute

Check the box next to the material

Assign Automatically button

Click on "Assignments" button

Click on "Process assignment"

The "Process Assignment Create PO" box , enter

Drag the PR and drop in the shopping basket

Save

SD - 3rd party sales order Receive Goods

MIGO_GR

PO Number

DN Number

Batch tab , click on classification

Serial Numbers tab

Date of Production

Flag Item OK

Check, just in case

Post

Save

SD - 3rd party sales order Create Invoice

MIRO

Invoice Date

Look for the PO , state the vendor and the Material

Check the box

Click on "Copy"

Purchase Order Number (bottom half of the screen)

Amount

State the baseline date

Simulate & Post

Invoice Number

*Invoice blocked due to date variance

SD - 3rd party sales order Create a delivery order

VL01N

In the order screen , go to the menu Sales Document , select "Deliver"

Go to "picking" tab

State the qty and save

SD - 3rd party sales order Create a billing document

VF01

Ensure that the delivery document is correct in the

Enter

Go to edit -> Log

Save

Customize the Third Party Sales in summary:

1. Create Vendor XK01

2. Create Material – Material Type as "Trading Goods". Item category group as "BANS".

3. Assign Item Category TAS to Order type that you are going to use.

4. A sale order is created and when saved a PR is generated at the background

5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

7. Goods receipt MIGO

8. Goods issue

9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

10. Billing

SD - 3rd party sales order Create Sales Order

VA01

Order Type

Sales org, distribution channel, division

Enter

Sold to

PO #

Material

Quantity

Enter

Save

SD - 3rd party sales order View the PR that is created with a third party sales order

VA01

Order Number

Goto Item Overview

Item ->Schedule Item

SD - 3rd party sales order View the PR that is created

ME52N

Key in the PR number

Save

SD - 3rd party sales order Assign the PR to the vendor and create PO

ME57

Key in the PR number

Toggle the "Assigned Purchase Requisition"

Execute

Check the box next to the material

Assign Automatically button

Click on "Assignments" button

Click on "Process assignment"

The "Process Assignment Create PO" box , enter

Drag the PR and drop in the shopping basket

Save

SD - 3rd party sales order Receive Goods

MIGO_GR

PO Number

DN Number

Batch tab , click on classification

Serial Numbers tab

Date of Production

Flag Item OK

Check, just in case

Post

Save

SD - 3rd party sales order Create Invoice

MIRO

Invoice Date

Look for the PO , state the vendor and the Material

Check the box

Click on "Copy"

Purchase Order Number (bottom half of the screen)

Amount

State the baseline date

Simulate & Post

Invoice Number

*Invoice blocked due to date variance

SD - 3rd party sales order Create a delivery order

VL01N

In the order screen , go to the menu Sales Document , select "Deliver"

Go to "picking" tab

State the qty and save

SD - 3rd party sales order Create a billing document

VF01

Ensure that the delivery document is correct in the

Enter

Go to edit -> Log

Save

rewards if it helps

siva

Former Member
0 Kudos

Hi,

<b>Third Party:</b>

The customer orders you an item. The item is not in stock and you want to deliver on the requested delivery date of the customer. You know a vendor who manufactures the same item. What you will do you will raise a purchase order to that vendor asking for the same item. The vendor will despatch the items directly to the customer's site and the bill will be sent to you. You will send the invoice to your customer. Then after verifying the vendor's invoice you will release the payment to the vendor.

<b>Pre-requisites:</b>

In VOV4 do the item category assignment for third party item category "TAS" for your sales document type.

In VOV5 - do the schedule line category determination for "CS" for item category "TAS'.

1. Create a purchasing organisation in the enterprise structure. Define and assign it properly.

2. Create the purchasing group - IMG - materials management - purchasing - create purchasing groups. New entries here as per your requirement.

3. Create the vendor using transaction code "XK01". You will have to create the partner determination for this also for partner function "VN"

4. Create 3rd party material. Use material type as "HAWA - trading goods."

5. The item category group for the third party material is "BANS"

6. The item category for the 3rd party material is "TAS"

7. The schedule line category for the 3rd party item is "CS" Go to VOV6 select "CS" here in the oder type field there will be "NB". This is for purchase order type. That is why whenever you save a sales order for a 3rd party item the system will automatically generate a purchase requisition in the background which you can see in VA02 in the schedule line data for the item.

8. In "ME21N" you use the purchase requisition generated to create the purchase order which is sent to the vendor.

9. Then when the vendor informs you that he/she has sent the material to the customer, then you do a "dummy goods receipt" in your system. This is done using transaction code "MIGO". This is done because in the system there should be a balance - for an incoming order there should be an outbound delivery.

10. Then you send the bill to the customer using VF01.

11. Then using transaction code "MIRO" you verify the invoice sent to you by the vendor. When this is saved there is accounting entry done which informs the FI people to release the payment to the specific vendor.

Reward points if solution helps.

Regards,

Allabaqsh G. Patil

Former Member
0 Kudos

In the third party scenario to raise the PR (Automatically in the scdule line)

there are two ways

1. While creating material master in the sales org. 2 maintain item category group

BANS

2.Or in sales order line item change item category to TAS.

Because TAS item category assigned to CS schedule line category (VOV6)

In this schedule line category (Configuration) the item category maintained as purchase req.

This way in the sales order purchase requisition can be created.

sailaja_vadlamudi
Contributor
0 Kudos

HI

Following are the steps of third party:

1) Creation of third party sales order

2) Generation of automatic purchase reqisition throught the configuration of schedule line CS in SD.

3) You can check the PR Number in the schedule line tab of sales order.PR requirement will not be available in the MD04.

4) Manually create a PO for vendor with item category S.

5) There will be no GR in this case.

6) Create an invoice verification document.

7) Create an invoice from the SD side w.r.t Sales order.

You process third-party items by creating a normal sales order. In overview for the order, you can then overwrite the default item category (TAN in the standard system) with the special item category for third-party items: TAS.

A third-party delivery order has the following structure:



Header data
Order number, order type, sold-to party, purchase order data, pricing data (document currency, exchange rate type, pricing procedure, amortization procedure, liability account usage), organizational data, conditions, text for order header

Item data (several times per order)
Item header data
Order and item number, order and item type, sold-to party, order change type

Basic data
The most common data on shipping, billing, additional data (statistics), schedule line
Additional tab pages are displayed for details.

Billing (details)
Payer and bill-to party, billing schedule, billing frequency, start of billing, billing method, transfer type, payment method, bank details or payment card data etc.

Shipping (details)
Plant, customer group, start of delivery, specifications for shipping outsorting (e.g. first delivery separately), status of delivery etc.

Additional data (details)
Sales office, publication division, letter type for special output

Schedule line
Publication and edition, mix type, delivery type, schedule line number, schedule line type, validity period, purchase frequency, schedule line quantity, billing frequency, sales price (determined automatically), price date etc.

The billing in third-party order processing

(TPOP) uses the standard FI functions to:

· Invoice Creation and Generation (ERS)

· Update of Accounts Receivable

· Update of Billed Quantity

· Update of Accounts Payable

· Offsetting Accounts

For more information about standard FI functions, see the SAP Library of SAP ECC under Financials ® Financial Accounting (FI).

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.

Processing Third-Party Orders in Sales



Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.

Automatic third-party order processing
If a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.

Manual third-party order processing
In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.

If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.



If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.
You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.



Processing Third-Party Orders in Purchasing

When you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.

Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.

All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order.

Sail

Former Member
0 Kudos

Hi,

Process Flow for 3rd Party Sales…

Customize the third party sales in summary:

Create Material – Material Type as "Trading Goods". Item category group as "BANS".

Assign Item Category TAS to Order type that you are going to use.

A sale order is created and when saved a PR is generated at the background

With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

• Goods receipt MIGO

• Goods issue

• 9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

• Billing

1. SD - 3rd party sales order Create Sales Order

VA01

Order Type

Sales org, distr chnl, div

Enter

Sold to

PO #

Material

Quantity

Enter

Save

2. SD - 3rd party sales order View the PR that is created with a third party sales order

VA01

Order Number

Goto Item Overview

Item ->Schedule Item

3. SD - 3rd party sales order View the PR that is created

ME52N

Key in the PR number

Save

4. SD - 3rd party sales order Assign the PR to the vendor and create PO

ME57

Key in the PR number

Toggle the "Assigned Purchase Requisition"

Execute

Check the box next to the material

Assign Automatically button

Click on "Assignments" button

Click on "Process assignment"

The "Process Assignment Create PO" box , enter

Drag the PR and drop in the shopping basket

Save

5. SD - 3rd party sales order Receive Goods

MIGO_GR

PO Number

DN Number

Batch tab , click on classification

Serial Numbers tab

Date of Production

Flag Item OK

Check, just in case

Post

Save

6. SD - 3rd party sales order Create Invoice

MIRO

Invoice Date

Look for the PO , state the vendor and the Material

Check the box

Clilck on "Copy"

Purchase Order Number (bottom half of the screen)

Amount

State the baseline date

Simulate & Post

Invoice Number

*Invoice blocked due to date variance

7. SD - 3rd party sales order Create a delivery order

VL01N

In the order screen , go to the menu Sales Document , select "Deliver"

Go to "picking" tab

State the qty and save

8. SD - 3rd party sales order Create a billing document

VF01

Ensure that the delivery document is correct in the

Enter

Go to edit -> Log

Save

Former Member
0 Kudos

Hi

Customize the third party sales in summary:

1. Create Vendor XK01

2. Create Material – Material Type as "Trading Goods". Item category group as "BANS".

3. Assign Item Category TAS to Order type that you are going to use.

4. A sale order is created and when saved a PR is generated at the background

5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

7. Goods receipt MIGO

8. Goods issue

9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

10. Billing

SD - 3rd party sales order Create Sales Order

VA01

Order Type

Sales org, distr chnl, div

Enter

Sold to

PO #

Material

Quantity

Enter

Save

SD - 3rd party sales order View the PR that is created with a third party sales order

VA01

Order Number

Goto Item Overview

Item ->Schedule Item

SD - 3rd party sales order View the PR that is created

ME52N

Key in the PR number

Save

SD - 3rd party sales order Assign the PR to the vendor and create PO

ME57

Key in the PR number

Toggle the "Assigned Purchase Requisition"

Execute

Check the box next to the material

Assign Automatically button

Click on "Assignments" button

Click on "Process assignment"

The "Process Assignment Create PO" box , enter

Drag the PR and drop in the shopping basket

Save

SD - 3rd party sales order Receive Goods

MIGO_GR

PO Number

DN Number

Batch tab , click on classification

Serial Numbers tab

Date of Production

Flag Item OK

Check, just in case

Post

Save

SD - 3rd party sales order Create Invoice

MIRO

Invoice Date

Look for the PO , state the vendor and the Material

Check the box

Clilck on "Copy"

Purchase Order Number (bottom half of the screen)

Amount

State the baseline date

Simulate & Post

Invoice Number

*Invoice blocked due to date variance

SD - 3rd party sales order Create a delivery order

VL01N

In the order screen , go to the menu Sales Document , select "Deliver"

Go to "picking" tab

State the qty and save

SD - 3rd party sales order Create a billing document

VF01

Ensure that the delivery document is correct in the

Enter

Go to edit -> Log

Save

http://help.sap.com/saphelp_470/helpdata/en/dd/560287545a11d1a7020000e829fd11/frameset.htm

Message was edited by:

SHESAGIRI.G

Former Member
0 Kudos

hi

in third party processing the material should have item category group as "BANS" and the item category should be "TAS" which results in schedule line category "CS" which should have "NB" as document type.

first create a vendor with "XK01"

should have maontained purchase info record "ME01"

should have maintained source list "ME11"

now create a sales order using VA01 which will create the purchase requissition automatically as soon as you save the order.

now goto VA02 and schedule lines data make a note of purchase requisition number and now create a purcjhase order with ref to PR

goto ME57 or ME58 create a purchase order

goto MIGO for goods recipt

goto MIRO for invoice receipt

now do VF01 to your customer

<a href="http://help.sap.com/saphelp_46c/helpdata/en/70/a7853478616434e10000009b38f83b/frameset.htm">http://help.sap.com/saphelp_46c/helpdata/en/70/a7853478616434e10000009b38f83b/frameset.htm</a>

1. Create Vendor XK01

2. Create Material &#8211; Material Type as "Trading Goods". Item category group as "BANS".

3. Assign Item Category TAS to Order type that you are going to use.

4. A sale order is created and when saved a PR is generated at the background

5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.

6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO

7. Goods receipt MIGO

8. Goods issue

9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.

10. Billing

SD - 3rd party sales order Create Sales Order

VA01

Order Type

Sales org, distr chnl, div

Enter

Sold to

PO #

Material

Quantity

Enter

Save

SD - 3rd party sales order View the PR that is created with a third party sales order

VA01

Order Number

Goto Item Overview

Item ->Schedule Item

SD - 3rd party sales order View the PR that is created

ME52N

Key in the PR number

Save

SD - 3rd party sales order Assign the PR to the vendor and create PO

ME57

Key in the PR number

Toggle the "Assigned Purchase Requisition"

Execute

Check the box next to the material

Assign Automatically button

Click on "Assignments" button

Click on "Process assignment"

The "Process Assignment Create PO" box , enter

Drag the PR and drop in the shopping basket

Save

SD - 3rd party sales order Receive Goods

MIGO_GR

PO Number

DN Number

Batch tab , click on classification

Serial Numbers tab

Date of Production

Flag Item OK

Check, just in case

Post

Save

SD - 3rd party sales order Create Invoice

MIRO

Invoice Date

Look for the PO , state the vendor and the Material

Check the box

Clilck on "Copy"

Purchase Order Number (bottom half of the screen)

Amount

State the baseline date

Simulate & Post

Invoice Number

*Invoice blocked due to date variance

SD - 3rd party sales order Create a delivery order

VL01N

In the order screen , go to the menu Sales Document , select "Deliver"

Go to "picking" tab

State the qty and save

SD - 3rd party sales order Create a billing document

VF01

Ensure that the delivery document is correct in the

Enter

Go to edit -> Log

Save

with regards to auto PO, tick the item category control at VOV7 for the field create automatic PO, and at schedule line category mention the material account assignment, maintain Purchase Order type, MM item category.