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hello sir

Former Member
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give an example of third party,inter company billing

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

hi,

in simple sense third party comes in to picture when you dont have the material in your premises or sloc or if the material is third party item.it deals with customer and vendor where customer raises SO (where material is not available )and here at the same time PR gets generated in back ground and then the vendor rec it where he sends the goods directly to the customer.

in case of inter company the transfer of materials is going to be between two co.codes (belongs to same corporate)

Answers (3)

Answers (3)

former_member184555
Active Contributor
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Hi

The easiest way to understand the difference between these two scenarios is,

In both the scenarios Customer,Ordering company and Delivering Company will be there.

The Customer Orders the material

The Ordering Company takes the Order

The Delivering company supplies the material directly to the customer who placed the order with the ordering company.

If the Company which makes the delivery belongs is our group company - it is inter company sales process

If the company which makes the delivery is just a vendor(outsider) and not our group company - it is third party sales process.

In Third party, a PO will be raised and sent to the vendor.

In Intercompany PO is not raised.

Thanks,

Ravi

Former Member
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Hi,

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. So essentially third party comes into play either when we dont manufacture that product / we dont have it.

Intercompany billing is somewhat similar to third party but here the delivering party is not a vendor but our own sister company code. So ordering and delivering company codes belong to the same company. The business need for this process can be the one mentioned in third party ie, you dont produce / dont have it.

regards

sadhu kishore

ranjeetrajendra_jain
Active Contributor
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Do you mean third party one scenarion and Intercompany another scenario?

Visit this [link|http://groups.google.co.in/group/sapSDtech/files] you may fine some helpful documents on the same.

Regards