Issue regarding third party sales

[Former Member]

Hi all,

In ThirdParty process as per knowledge two methods are there

1.Individual purchase order: Company will send purchase order to vendor and get good from vendor and deliver the goods and bills to customer,

2. Third party order process: Company pass the oder to vendor, vendor deliver goods to customer and bill the company, company bills to customer.

My question is

1. In the first method company will deliver goods to customer, what is the delivery process and billing process in this method, plz tell me the procedure for individual purchase oder step by step.

Thanks in advance

[Former Member · Accepted solution]

Hi,

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. For more information, see Make-To-Order Production.

The processing of individual purchase orders is controlled by the material type. 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, it might be advantageous at times to procure products that are normally produced internally (such as finished goods) from an external vendor.

Thanks,

Raja

[Former Member]

Hello,

Individual Purchase order:

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.

The item category is TAB, and the item category group in material master can be BANC.

When you create a delivery, the system checks if goods are available in the sales order stock. You then create a delivery-related billing document.

Prase