third party & intercompany

[Former Member]

Hello SAP gurus

I have small confusion regarding the thirdparty and intercompany sales.

Could you please tell me the difference between third party and intercompany sale.Inboth the cases the delivering plant is different and goods are deliveried to customer directly .for me the process seems to same .

Thanking you.

Regards

Srikanth

[Former Member · Accepted solution]

Hi

Intercompany-

Customer orders goods to company code/Sales organization A .A Sales org will accept and bill the order in the system. Company code/sales org B will deliver the goods to end customer and raise an intercompany billing on with reference to delivery. This can happen only after sales org 1 raises invoice to his end customer to whom the material has been delivered by sales organisation 2.

Third Party :

Here the customer orders the goods to the company . So the company orders the vendor to supply the goods to the customer and there by company raises the invoive to the customer and the vendo sends the invoice to the company code

Difference between Intercompany and Third party is Here(In third party) the goods will be supplied to the customer thru outside source where as in intercompany goods will be supplied from the Internal source. Here the intercompany billing is generated as soon as we do the pgi to the customer, but in third party we will bil the goods to the customer after vendor sends the invoice to the company.

Regards

[Former Member · Accepted solution]

Thanks a lot Srikkanth K .Your answer is crysat clear.Thanks a lot for clarification

[Former Member]

I am 100 % agree with Srikkanth k

Ahmed

[ranjeetrajendra_jain]

Third Party is when a vendor is doing the delivery for you in intercom, your own company with different location can do it for you, hence intercom.

Third Party Ex -- if you produce a material A and fall short in a delivery. you order the same from your vendor and ask him to deliver it directly to you trade customer... This would be third party...

Intercom Ex: If you produce a material A and fall short or there is another company under your Companies Umbrella which is nearer to the customer and can deliver it easily there. T=In this case you ask your other comapny to send the material there and bill you. This would then generate and intercompany Bill.

Hope this helps

[Former Member]

hi

i think in 3rd party item category TAS generates PR whereas in inter company there is no need of PR.