Solved: third party

Former Member · ‎10-10-2007

Dear Friends

What is the difference between good receipt and invoice receipt

normally used for third party.please suggest me according to

proper scenario and also according to proper transaction code

With regards

Sankalp

singhai.sankalp78@gmail.com

Manoj_Mahajan78 · ‎10-10-2007

Sankalp,

READ BELOW PROCESS-

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

REWARD IF U FINDS THIS AS HELPFUL...

Regds

MM

Former Member · ‎10-10-2007

In third party there can be two scenarios:

1) third party sales without shipping notification:

Creation of Order based on customer requirements. Purchase Req. also generated in the order.

Purchase Order Processing based on the purchase req. The quantity and the material are transferred from the sales order

Vendor Invoice Verification- The vendor invoice verification takes place before customer billing as the quantity of the invoice updates the quantity to be invoiced in the sales order. (Tcode: MIRO)

Billing Documents - The billing documents are carried out on the basis of the order.

2) third party sales without shipping notification:

Creation of Order based on customer requirements. Purchase Req. also generated in the order.

Purchase Order Processing based on the purchase req.

Shipping Notification - When the vendor has sent the material to the customer, they will normally send you a shipping notification, which contains the exact quantity of material sent. Here you do a goods receipt( Tcode: MIGO). It will be posted directly in consumption so that no stocks are created. The quantity of goods received then updates the quantity to be invoiced in the sales order. Therefore, it is possible to create the customer invoice before you receive the incoming invoice from the vendor.

Billing Documents- The billing documents are created on the basis of the order as the order quantity has been adjusted against the goods receipt.

Vendor Invoice Verification - Invoice verification can take place after billing(T.code: MIRO)

Hope that improves ur understanding. Per ur question in lay man terms, a Goods Receipt is done for incoming goods in to the factory and a invoice receipt is the verification of the invoice sent to the factory against the goods receipt.

Please award points if helpful

Thanks

Former Member · ‎10-10-2007

Hi Sankalp Singhai

An invoice is a bill. It is a list of goods or services provided, itemised and individually priced. There is a total amount due at the bottom. The prices shown are gross, and there may be deductions or additions at the bottom for discounts and or taxes. It is a request for payment.

A receipt is an acknowledgement that payment has been made.

A goods receipt are mainly used for receipt of stock from an external vendor via a purchase order or receipt of material from in-house proiduction via a production order. Goods receipts are also used as the movement that initially creates inventory in the system and enters materials that were received without a purchase order. A goods receipt is important to a company as it moves the material into stock, updating the stock levels and allowing production to occur.

PROCEDURE TO CREATE THIRD PARTY SALES

Step: 1

Create Purchasing organization.

Path: Img--enterprise structure—definition—materials management—Maintain purchasing org.

Step: 2

Assign Purchasing Org. to company code

Path: Img~~Enterprise structure—Assignment~~ Materials management-- Assign purchasing organization to company code.

Step: 3

Assign purchasing organization to plant

Path: Img~~Enterprise structure—Assignment~~ Materials management-- Assign purchasing organization to plant

Step: 4

Create purchasing group

Path: Materials Management—Purchasing—Create purchasing group

Step: 5

Maintain purchasing area

Path: Materials Management—Purchasing-- Maintain Purchasing Area

Step: 6

Maintain Purchasing Area Determination

Path: Materials Management—Purchasing-- Purchasing Area Determination

Step: 7

CREATE MATERIAL MASTER

T-Code: MM01

Maintain:

Industry Sector: Retail

Material Type: Trading goods

Step: 7A

In Basic data 1

Maintain BANS in Gen/Itemcatgroup.

Step: 7B

In sales: Sales org. 2

Maintain BANS In Gen.item cat. Group

Maintain BANS In item category Group

Step: 7C

In Sales: General/Plant

Maintain KP in Availability check

Step: 7D

In Purchasing:

Enter the purchasing group.

Click on the Autom. P0

Step: 8

Create Vendor Account Group

Path: Img—Financial Accounting—Accounts Receivables and Accounts Payables—

~~Customer Accounts—Vendor Accounts—Master Data—Preparations for Creating Vendor Master Data~~--Define Account Group

Step: 10

Create Vendor

T-Code: XK01

Step: 11

Create Info Record

T-Code: ME11

Enter the Vendor no. Material no., Purchasing org. and Plant and Create Info

Record.

Step: 12

CREATE SALES ORDER

T-Code: VA01

A screen with the following details will get created. Then click on the continue button

Pick the Schedule lines. A screen will be displayed as shown with Delivery date, Rounded qty. and Confirmed qty.

Before saving the sales doc. Purchase requisition no. will not get created

Step: 12C

Save the Sales Order.

After saving, Purchase requisition number is created in the sales document

Step: 13

DEFINE DOCUMENT TYPE

Path: Material Management—Purchasing Order—Define Document Type

Define the Document type

Step: 14

Create Purchase Order

T-code: ME21N

Step: 14A

Enter the details

Enter the Purchase Requisition no.

Step: 14B

A screen as shown below appears. With all the details like Matl. Po. Qty, Deliv. Date, Net price Curr etc.

Step: 14C

Then Save the Order. A screen with the Purchase order no. will get created.

Step: 15

Release the PO. Number.

T- Code: ME29N

If required use this release process

Step 16 – Post Invoice Receipt

Use [MIRO] to receive the vendor’s invoice.

Basic Data Tab (Header Level)

Enter Invoice Date, Reference No, Amount (tax inclusive) and Tax amount

Check at the header, if the balance is zero and the green indicator is on. If yes, check the line items which have to be posted else correct the amount and/or tax amount to make the balance zero.

Save the invoice receipt document

Step 17 – Generate invoice for sales order

Use [VF01] to create the billing document.

Enter the sales document number and save

Check the document flow of the sales order.

I have send the third party process to ur mail id.

Reward if useful to u

Former Member · ‎10-10-2007

Goods receipts (MIGO) is done when the vendor supplies the material to customer. This is used to Post the supplied quantity to the system. In third party goods receipt does not increase the material qty as its supplied to the customer.

Invoice receipt (MIRO) is to post the invoiced qty/value to the system which sent by the vendor. Here we are simulating the PO/Invoice.

One of this to Qty is used as reference for SD invoice in third party. for this we have to maintain a copy control (billing qty).

reward if usefull

Muthupandiyan

Former Member · ‎10-10-2007

hi,

Follwo this scene:

customer orders from company A but due to shortage the company A asks company B to supply the material directly to customer. But company A will bill the customer after confirmation from company B that it has supplied material to customer.

Now the company B has supplied materials to customer & he will get sign from customer stating that customer has recieved the material. This confirmation is sumbitted to comapany A this called goods reciept-MIGO. The Company B bills company A- this invoice reciept MIRO

regards,

Arun prasad

former_member227476 · ‎10-10-2007

dear sankalp

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

rewards if it helps

siva

Former Member · ‎10-10-2007

Goods receipt will be posted when ever the vendor ships the goods to our customer.

We will do this transaction in SAP using MIGO.

Invoice receipt is done when the Vendor sends us the invoice.. ( I.e Billing ).

It can be done using MIRO.

THe above two steps are standard and manual. There are many other ways that the actual process can happen. If the client follows EDI standards then the Goods receipt and Invoice receipt can be done through IDOCs automatically.

HOpe you got what you are looking for..

Regards,

AJai.

Don't forget to reward points if useful.

Former Member · ‎10-10-2007

Hi Sankalp,

Third party order processing is as follows:

Assume three companies X, Y and Z

X - The company,

y - The customer

Z - Vendor

When ever X gets a PO from Y to supply some goods, X has an option of either manufacturing those goods or procuring those goods.

If he is procuring the goods, there are two methods that are generally followed:

Method 1) After receiving the PO from Y, X creates a sales order against Y.

Now at the same time he also creates a PO to a vendor Z to produce the goods

Z produces the goods and supplies to X

X receives the goods from Z

Then X delivers the same goods to Y.

After that X invoices Y and Z invoices X.

Note : Here there is no direct/ Indirect relation between Z and Y.

This process is known as Trading Process. and the Material here is created with Material type HAWA.

The other method is a Third party order processing method:

Here the glaring difference is that instead of Z supplying the material to X and X in turn supplying the same material to Y.

X authorizes Z to supply the material to Y on his behalf and notify him once the delivery is complete.

Now Z supplies the material to Y and acknowledges the same to X.

Z will send a copy of delivery acknowledgement and invoice to X.

After receiving the delivery confirmation and invoice from Z, X has to verify the invoice and this process is known as invoice verification and is done in SAP through Tcode MIRO.

The next step for X is to create an invoice and submit to Y

Only after the invoice verification document is posted then only X can create an invoice for Y.

This is the business flow that is followed for third party order configuration.

There are few steps that have to be configured to enable the system to function as mentioned above.

Step1)

If you are always following a third party process for a material then you have to create the material using item category group BANS.

The procurement type should be marked as External procurement (F) in MRP 2 view of the material master record.

if you are not always allowing third party order processing then u can create a material master record with item category group as NORM and the procurement type should be marked as ( X) meaning both types of procurement ( in house manufacturing and external procurement).

Step 2)

the item category in the order should be manually changed as TAS.

For that you need to configure the item category determination

Order type + item cat Group + Usage + High level = Item cat + Manual item cat

OR + NORM + + = TAN + TAS

OR + BANS + + = TAS

Step 3)

make sure that during the item category configuration for TAS you need to mark relevant for billing indicator as F

step 4)

The schedule line category for this type should be CS.

make sure that you mark subsequent type as NB - purchase requisition in this schedule line category as this will trigger the purchase requisition order immediately after the creation of the sales order and the PO to vendor is created against this purchase requisition.

Please Reward If Really Helpful,

Thanks and Regards,

Sateesh.Kandula

Former Member · ‎10-10-2007

Hi Sankalp,

Goods receipt for inbound delivery: After a certain number of days, typically the transportation time, a batch job run performs goods receipt posting with reference to inbound deliveries. The inbound delivery date is of the utmost importance; this must be an accepted number of days that matches the arrival date of the shipping agent closely. The batch jobs check this date for creation of a goods receipt an accepted number of days after this date.

Goods receipts are created automatically in the background by a batch job using transaction MIGO ABAP program with requisite parameters. Goods receipts are performed in a given period, such as seven days. This period (X) can be set up within the program variant with adjustment of posting date for inbound delivery. Typically, this batch job runs nightly.

The goods receipt posting triggers an automatic batch job for creation of customer sales invoices and communication to the customer via EDI. The sales invoices reference the sales order. The data from the inbound delivery is adopted in the billing document.

The invoice creation can be done automatically in background by a batch job using transaction VF06 ABAP program with requisite parameters.

Award points if it adds information.

Thanks

Mohan

third party

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