what is the difference between standarted order and thitd party order

[Former Member]

plse tell me the difference between standartde order and third party orders

[krishnaswamy_kumaraswamy]

a standard order is cutomer is placing order to you and you will be servicing it and you will bill him stock will be maintained by you

third party is customer will place the order to you ,you will place a place the purchase order to vendor and vendor will supply to your customer , you will bill the customer stock will be maintained by vendor

hope it will help you

[Former Member]

hi,

incase of a standard sales order we deliver the item from our plant. Third party order comes into picture in two cases, either you are out of stock for a particular product or you dont manufacture it. In both these cases the product is shipped to the customer from the vendors location.

please note that third party is used not just when you dont manufacture a product but also when you are out of stock for a product which you were otherwise manufacturing. Its for these kind of situations we have a manual item category funcitonality where in you can change the TAN item into TAS to carry out the third party process.

regards

[Former Member]

As others have said standard orders go through a distribution center or plant while 3rd party orders ship directly from the factory/manufacturer. We use 3rd party orders for some of our larger accounts because we don't want to incur the cost of bringing the goods into our facility only to turn around and ship it right back out to our customer. It is faster and less expensive just to have the factory send it directly to them. Think of it like drop-shipping.

[former_member183879]

A standard order is an order created by the buyer and the seller directly sends the material from his plant to him. i.e. He manufactures and stocks the material and he delivers them for the sales orders he gets.

In third party orders, the seller gets the orders. But he doesnt manufactures them. So once he gets the order, he created a Purchase order for a person who manufactures these materials, and ask them to deliver the material directly to the customer who has ordered for it. Then he will invoice the customer. On the other hand, he will receive an invoice for the PO created from the vendor of that material.

Hope this helps.

Reward if this helps.