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what is the purpose in thard party

Former Member
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HI gurus

In third party sales order we are not delivering material right vendor delivering the material to the customer. Depending on Business request. Now My question then what is the need to create a Goods Receipt in Third party order. MIGO why we have to do this. can any one explain me detail....

Thanks in advance

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Answers (4)

Answers (4)

Former Member
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Hi

Standard SAP 3PP process defines process as below:

Sales order --> PR -> PO --> LA confirmation of PO --> Invoicing

LA confirmation means unit is physically being shipped to customer.

Now there are lots of companies who procure 3PP products. e.g. One laptop manufacturer produces laptops and the 3PP accersories like laptop cover, mouse, cords etc are procured from other vendors. Now here if customer has bought laptop and some accesories and has asked for complete delivery then the laptop will be delivered from client hub but the other are from vendor. Now considering all lead times the deliveries will be skewed. Hence we will need these accesories to arrive at our hub and hence GR of PO. Now once consolidation of all items of SO happen then we can have single delivery to customer.

THis is very good example of tweaking to 3PP process.

Hope this makes ur thinking more clear. Reward if helpful

Kind Regards

Sandeep

Former Member
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Hi,

In thrid party orders, when we create PO then in it mIGO is not ticked but non valuated can be ticked only for a statistical MIGO...But it will not affect any material accounts....

directly We do MIRO and then only SD bill can be raised...

Actually there r two cases

1. Third Party with Shipment notification

2. THird party W/O Shipment notification

so in case we use with shipment motification then we can do a statistical MIGO and raise an Sd bill w/o MIRO settings to be done accordingly in copy controls...

Reward if useful concept

Krishna

Former Member
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Hi,

We can do third party without doing goods reciept also..

the use goods issue documet in third party order is for statistical purpose only.. say some reference in the system... vendor is deliverd the material to customer but still vendor invoice to the company only.. so we need some ref.... this will not increase the stock of the material in our plant...

reward if helps

Muthupandiyan C

ranjeetrajendra_jain
Active Contributor
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Hiya

We don't have to do migo in third party. We directly do MIRO

Regards