Tax determination third party process

Hi all,
I need to re-determined taxes during invoice creation for a third party sales flow.
To explain the case:
SO: company 1000 Country XX
PO: company 1000 Departure country YY
Invoice SO: tax determination as:
Departure country YY
Arrival county XX
At the moment the SAP consider as deaprture country XX and not YY.
In which way the system can consider as departure country the country of the vendor and not the one of the sales organization?
Let me know if you need further information.
Thank you in advance,
Manuele

While Tax determinations--any way you are going to take the region of the delivering plant(not sales org)
If you maintain tax classifications for customer and Material--maintain the Tax rates which will take care of Tax in sales order.
Any way your vendor will bill to you not to customer--So if you follow the first Two points--which will take care of Tax.
I think coding corrections here--may not be suggestible.
Pl update.
Phanikumar

Similar Messages

Tax issue third-party process (departure country)

Hi,
maybe someone can help for this case.
For sales org 1000 (country SG), we create a sales order for a foreign customer (e.g. KR) with a third-party purchasing (from country TH) with direct shippment.
Now, if I look into the departure country, it is SG because the plant of the item is also located in SG. But the fact is, that a third-party purchase is done and shouldn't be the departure country like in the example be KR?
Thank oyu for any help!
Besr Regards,
Florian

The determination is clear and no problem.
The case is a 3rd party purchase from a foreign supplier with direct shippment to a foreign customer. Here the plant on item level is always the local one, but the departure country of the goods are the country of the supplier.
The question is, how this can be done in SAP to determine the taxes based on the departure country of the items supplier.
Best Regards,
Florian

Third party process with Valuated sales order stock

Hi All,
We have third party sales order process with valuated sales order stock. The problem is that in the theird party PR which is triggered directly from the sales order it determines a stock account which is assigned to the BSX key in OBYC.
But since this is third party processing as per my understanding a consumption account assigned to key GBB-VAX (since account assignmnt category is X) should get determined, so that when the GR is done against the PO a consumption posting is done in the background.
I am not able to understand if the system is determining the stock account due to the fact that it is valuated sales order stock and if so, what should happen after GR. Should we have a stock created for the material which is physically directly delivered to the customer?
Regards,
V S

Hi,
Check GBB-VKA which is defined in OME9 for your ''E'' Account Assignment Category that SAP will debit upon GR posting
Also check "X" GBB-VAX and the G/L account assignment in OBYC
The posting on GR should be debit KBS -Credit GR-IR
Thanks
Diwakar

Third Party Process in Materail Management (No SD)

Hi,
Our Business would like to outsource the Stationary materials to supply the required materials directly to requester.
I believe the best possible solution for this requirement is to implement third party process in Material management as we do not have SD Module.
In this scenario, which material type we need to use (Item category group, Field ref, Sref material type and field ref) and the config part.
Secondly, does it have any effect on MRP, Stock levels? Also please explain the process involved in Goods returns
Appreciate, if you could share your experiences.
Regards
Kumar

Creating a Third-Party Item Manually
To enter a third-party item in a purchase order without an SD order or purchase requisition, proceed as follows:
Enter a third-party item manually in the same way as the purchase requisition.
After entering the account assignment, you receive a screen in which you can enter the address of the sold-to party.
Enter either the customer number or a delivery address.
Check whether goods receipts can be made for the third-party item. Goods receipts are possible if the goods receipt indicator is set in the item.
Save the purchase order.
Setting the Goods Receipt Indicator
The account assignment category X in the Customizing system of Purchasing determines whether a goods receipt can be posted for a third-party item. Here you define whether a goods receipt is possible, not allowed or compulsory.
If a goods receipt is possible, the GR indicator in the purchase order item is changeable. When you enter the purchase order, you decide if a goods receipt is to be posted or not.
Mat Type can be use ROH or Trading
For Return you can do return to your plant or ask vendor to pivk and replace the goods or issue the creadite to customer and take from vendor

Ship to party and vendor relation in third party process

Hello Experts,
I need your precious suggestions on my business requirement.
When we create the third party sales order system creates the Purchase Requisition and further PO is created through purchasing department.
Suppose in my third party sales order I have two items X & Y, and both need to deliver at two different ship to party XXX & YYY respectively. in order system determine plant 1000 for both materials based on plant determination (CMIR >> CMR >> MMR) and system generates PR.
I know while converting the PR to PO system check Source list (ME01) to determine the vendor. my requirement is I want to determine Vendor based on ship to party in sales order. suppose ship to party locations for XXX and YYY are Bangalore and Pune respectively and in both place we have different vendor. Both vendor manufacture product X & Y. so I want system should pick the vendor according to ship to party.
Is there any relation between ship to party and vendor which will work in third party processing ?
Kindly explain how I can achieve this requirement.
Thanks,

I doubt this can't be achieved by SAP standard functionality. You may need to use user exit. Check Third party to purchase req user exit or purchase req user exit to fulfill the requirement.
Regards,

Intercompany invoice not getting created in third party processing

Dear Gurus !
I am facing a problem in creating the intercompany invoice in case of third party order processing.
In our organisation , for any type of sale two billing documents are creared :
1) Commercial Invoice under the co. code for which sales org. is maintained at the sales order bookin level .
2) Intercompany Invoice under the co. code in which plant is maintained which is used at the sales order level as delivering plant.
So, as per the configuration req. for third party processing , i have created Sales order ( with automatic Purchase requistion generated ) , Purchase order creation with reference to the Purchase requisition , goods reciept ( MIGO ) and invoice reciept ( MIRO ) , then billing doc. or commercial invoice ( VF01 ) with the generation of accounting document and finally the intercompany invoice ( VF01 ) .
But i am facing the problem in final stage , that is , intercompany invoice creation .
Error Message : No open billing quantity has been determined .
I have checked the copy control for sales order to intercompany invoice and still not able to resolve it .
Please reply which setting needs to be done for this .
Awaiting your response , that what copy control settings is required .
Thanks .....

Hi Buddi / Mahesh / Kiran ,
It ' s good to see all of your opinion . But my problem has not been resolved .
I am implementing third party processing in my organisation , where the customer is an export customer ( outside India ) . Hence , this is a merchant export .
All the configurations / Customisations have been done for this process .
The process is running fine till commercial invoice , but the problem is in intercompany billing doc. creation.
I am again repeating - Error message : No open billing quantity has been determined.
Explanation of the process :
1) The order has been booked with item category TAS alongwith the item cat. group as BANS for the material used in the order .
2) The sales area is 1020 / 30 / 35 . Here , 1020 is sales org . under company code 0079 , 30 is export's distribution channel and 35 is the division for components .
3) The delivering plant used in the sales order is 1009 which is under co. code 0077. The price / condition record maintained for this material is in USD / EUR as it is a case of merchant export .
4) The purchase requisition is generated automatically when the order is saved . It can be seen at VA02 - > Item details - > Schedule Lines .
5) With the help of this PR no. , i have created a purchase order for vendor which is maintained under co. code 0077 asking for material in plant 1009 which we need to export / supply to the customer.
6) The value of material per piece in the P.O. is coming from the material master record -> Accounting 1 view - > Moving av. Price .
7) Now, the Purchase order is saved . With the help of this P.O. no. , goods reciept ( MIGO )is done .
8) After MIGO , Invoice reciept or MIRO is done under company code 0077.
9) After MIRO , customer ' s invoice is created through VF01 .
Remember : This is an order relevant billing , no delivery or PGI will happen here because the material is not coming into the plant 1009 .
10)The billing document ( order - related billing doc.) is created and the accounting document is also created under co. code 0079 in USD .
Till this stage , everything is running successfully as per business requirement , but i am facing the problem in the final stage , that is creation of intercompany invoice under co. code 0077 which is in INR .
In all other sales document types used in our industry , the process is same , that is : a) Sales order creation b) Delivery and PGI c) Billing doc. creation with accounting doc. under co. code 0079 and finally d) Intercompany invoice with accounting doc. under co. code 0077 and excise invoice creation with reference to intercompany invoice.
In the above, problem is not there becuase orde is delivery relevant , hence copy control is maintained for interco. billing to delivery type.
But in the new process , that is , third party processing , sales order relevant billing is done . so i suppose there will be a copy control for intercompany billing and sales doc. type , but i am not able to resolve it .
Hence , please understand the process before suggesting .
Thanks and awaits reply........

InIN THIRD PARTY PROCESS EXCISE PROCESS

Dear Experts,
In Third party process, sales order raised,po created to vendor,migo created,invoice made to the vendor.
po we made 14% bed,2%ecess&1%secess,after miro what is the process in excise,where the link vendor invoice and customer billing.please explain
Reagards,
V.Ramakrishnaparamahamsa

Hi,
Thanks for the above reply.
I am also into the scenario hence I am posting my query as a reply to this thread.
Do you mean to Create a tax code & to maintain the rates for inventorised condition types (Non deductible)
also taxes (VAT/CST) to be calculated on the above??
Regards,

Third Party Process (PR through Sales Order)

Hi all,
I have to configure the third party scenario (PR through Sales order) for one of my client.
So can anybody tell me what are all pre-requisite / settings from the configuration point of view as well as from the transaction point of view.
Thanks
Shubham

Hi,
here is some stuff regarding third party purchasing,
may be it will use ful,
u2022     The item category group (BANS) in the sales:sales org.data screen of the material master controls whether or not the material will always be a third party material. In this case, the item category in the sales order will be defaulted to u201CTAS.u201D   If the material is also procured internally, then the item category group can be set to u201CNORM,u201D and the material can still be used for third-party processing if desired.
u2022     The item category in the sales order (TAS) informs the system that      procurement data must be maintained for the order. In addition, this item category results in a purchase requisition being automatically created with its item   category defaulted (S).
u2022     The purchase requisition is created as a result of a sales order. For each schedule line (quantities for sales orders broken up by dates of delivery), a purchase requisition item is created, provided that the item category on the
sales order is u201CTASu201D for third-party. The purchase requisitions created can
be viewed and even edited from the schedule line screen (Edit-
Procurement Details).
u2022     Changes in quantities, dates and account assignments in the purchase order result in the automatic changing of the sales order.
u2022     A desired vendor (informational field) can be specified in the sales order in the procurement data for the order. In addition, a fixed vendor may be assigned in this data if known at the time of the sales order. This then becomes the supplier for the third-party items. If the vendor is not specified in the sales order, the purchase requisition goes through the normal source determination.
u2022     The account assignment in the purchase requisition can be either the sales order (C), or aux. account assignments (X).
u2022     Once created, the third-party purchase requisition follows normal
purchasing procedures.
u2022     Customer delivery information is copied onto the purchase requisition from the sales procurement data.
u2022     If you create delivery schedules or change quantities during the purchasing process, these automatically get copied back to the schedule lines on the
sales order.
The goods receipt indicator can be found in the purchase requisition which can be edited from the sales order (Click on Item line- Hit Schedule Lines button -Hit Purchase Requisition Button). This indicator determines whether or not the customeru2019s goods receipts are monitored. When the indicator is off, invoice verification is done against the purchase order quantity, and the delivery of goods to the customer is not input into the system
chenna
Edited by: lakshmi reddy on Oct 6, 2010 2:23 PM

Re Third Party Processing Interview Questions

Hai Friends
This is the similar type of Questions I faced in the interview.
a. Explain the third party process
b. What is the item category used?
c. How will a PR or a PO get created automatically? What are the settings required?
d. Is it necessary to make a Goods Receipt before creating the Invoice Receipt? What are the setting involved?
e. When does a customer invoice get created?
pl mail me the solutions to these Questions to my mail id <REMOVED>
Message was edited by:
        Yathish K

Hi
Third party order processing is as follows:
Assume three companies X, Y and Z
X - The company,
y - The customer
Z - Vendor
When ever X gets a PO from Y to supply some goods, X has an option of either manufacturing those goods or procuring those goods.
If he is procuring the goods, there are two methods that are generally followed:
Method 1) After receiving the PO from Y, X creates a sales order against Y.
Now at the same time he also creates a PO to a vendor Z to produce the goods
Z produces the goods and supplies to X
X receives the goods from Z
Then X delivers the same goods to Y.
After that X invoices Y and Z invoices X.
Note : Here there is no direct/ Indirect relation between Z and Y.
This process is known as Trading Process. and the Material here is created with Material type HAWA.
The other method is a Third party order processing method:
Here the glaring difference is that instead of Z supplying the material to X and X in turn supplying the same material to Y.
X authorizes Z to supply the material to Y on his behalf and notify him once the delivery is complete.
Now Z supplies the material to Y and acknowledges the same to X.
Z will send a copy of delivery acknowledgement and invoice to X.
After receiving the delivery confirmation and invoice from Z, X has to verify the invoice and this process is known as invoice verification and is done in SAP through Tcode MIRO.
The next step for X is to create an invoice and submit to Y
Only after the invoice verification document is posted then only X can create an invoice for Y.
This is the business flow that is followed for third party order configuration.
There are few steps that have to be configured to enable the system to function as mentioned above.
Step1)
If you are always followwing a third party process for a material then you have to create the material using item category group BANS.
The procument type should be marked as External procurement (F) in MRP 2 view of the material master record.
if you are not always allowing third party order processing then u can create a material master record with item category group as NORM and the procurement type should be marked as ( X) meaning both types of procurment ( in house manufacturing and external procurement).
step 2)
the item category in the order should be manually changed as TAS.
For that you need to confugure the item category determination
ord type + item cat grp + usge + Hiv level = Item cat + Manual item cat
OR + NORM +      +       = TAN . + TAS
OR + BANS +       +       = TAS
Step 3)
make sure that during the item category configuration for TAS you need to mark relevnat for billing indicator as F
step 4)
The schedule line cateogry for this type should be CS.
make sure that you mark subsequent type as NB - purchase requisition in this schedule line category as this will trigger the purchase requision order immediately after the creation of the sales order and the PO to vendor is created against this purchase requiesion.

Logical GR in Third Party Process

Hi Friends
There is logical GR involved in third party process. What if we do not want to trigger it?

very useful thraed for your Qn-
[stock not updating after doing MIGO (gr) for third party sales |stock not updating after doing MIGO (gr) for third party sales;
BR
Raj

Free of charge third party process.

Dear Gurus,
I want to create a sales order with a third party material with zero price, create a PO and invoice the PO with zero value.
Could you please tell me how this can be achieved and what are the necessary settings in config to be changed?
Thank You
Kumar

Hi Kumar,
the third party process is as follows:
1.Customer will order the material from the Company X.
2.Company X will not have stock of the material.
3.Company will raise a PO for the material to the Vendor & asks the Vendor to deliver the material to the customer.
4.Vendor will directly deliver the material to the customer & will send the invoice to the Company X.
5. Company X will then raise a invoice to the Customer wrt on the Sales order.
Create a Sales order with item category TAS, Schedule line category CS(standard).Once the SO is saved, go to the change mode of the SO, go to Schedule lines tab, & note down the PR number.
With reference to the PR, create the PO & then MIGO and MIRO.
Then create the invoice wrt the SO.
Let me know if you hav any problems.
Regards,
MP

Credit Check with Third Party Process

Hi Gurz,
I know about third party process but my problem is with credit check of the customers.
If customer has not got enough credit limit to process the order in normal senario credit controller has to manually release the order as system blocks it. In third party process system will give you warning message when saving sales order about customer credit limit but allows you to save sales order. Once saving sales order it authomatically creates Purchase Requisition. From PR purchasing creates P.O. with out knowing about customer credit limit issue. and so on. In other words goods supplied to customer even though credit limit has exceeded. This user don't know untill raising the invoice to the customer which is too late.
Can we stop creating Purchase requisition or block purchase requistion for credit check ? or there are better way of handling the process for credit check?
Thanks in advance

Hi,
Try to implement OSS note -738171 - Delivery block does not influence purchase requisition.
Following is the details of the note;
Summary
Symptom
The delivery block in a sales order does not prevent the generattion of the purchase requisition in a third-party or individual purchase order item. Regardless of the Customizing settings in the delivery block, the system confirms the TAB or TAS item and generates the purchase requisition.
More Terms
Order, purchase requisition, PReq, TAB, individual purchase order, individual purchase order item, TAS, third-party, third-party item, SD order, delivery block, VBAK-LIFSK, VBEP-LIFSP
Cause and Prerequisites
Solution
Create a user-specific user requirement (for example, 902: BEDINGUNG_PRUEFEN_902 in Include LV07A902) as a copy of standard user requirement 102 and assign it to requirement 'Preq' by using Transaction OVB5.
In the source code of the user-requirement, program a check for the delivery block which, if necessary, triggers an ERROR_EXCEPTION which prevents the generation of the purchase requisition.
You can use the existing check for the credit block as a template.
Regards,

Third Party Process and Inventory

We are using the SAP function "Third-Party Processing". We are using the function in it's standard (SAP R/3 4.7).
The auditor now has the following issue: Shipping the goods starts after paying the goods. Out of this, while shipping the goods, we are the owner of them. In this circumstance the ship is our warehouse.
SAP does not allow an Inventory Management within Third-Party Processing:
"Since a third-party order involves a movement from the vendor direct to the customer, Inventory Management is not in any way affected. If you wish to document the movement in the system, however, you can create a goods receipt for the third-party order."
With the SAP functions in this scenario it is correct that the warehouse stock is not being impacted. This is a conflict with the opinion of the auditor.
Let me explain in detail what is wrong out of the view of our auditor:
For example we initiated the order of a customer in June and we have paid the goods in June. The shipment starts in June and the goods will arive in July. Due to the fact, that we are the owner of the goods on the ship, we have to increase the stock. This is the opinion of our auditor.
Does any body know, how to solve the issue? How do you manage Third Party Processing & Inventory?

Some auditors just dont understand the SAP process. Instead of talking to weak users, they should talk to SAP directly.
What about shipments from standard sales orders that are shipped end of June and do arrive at the customer in July?
When do you bill your customer? when the goods arrives there, or earlier? Depending on the Incoterms you may still be the owner until the truck is unloaded.
If you change your process and post goods receipt to your warehouse, then you show inventory where no physical inventory is, you posted a goods receipt without a physical receipt. I am sure the next auditor will not allow such therotical process.
Get together, IT consultants of FI and MM and SD, strong business people for the same modules and the auditor, and discuss and find an optimal solution.And let the auidor sign the decision paper!!! Very important, I recently had to convice German auditors because they had different opinion than the Australian and US auditors of the same auditing company (and the issue had nothing to do with local legal requirements).

Third Party Process - forcing PO creation after error

Hello eveybody,
I am implementing the Third Party Process and everything is going well but I have a question. If I enter say 10 items on a sales order and one material does not have an info record/source list then that item does not get entered on the purchase req. This then blocks the automatic creation of the PO.
If I fix the problem material and re-enter it on the SO, then that item gets ordered but the other 9 are not processed. Is there nany way to force the PO creation for the other 9 items ??
Many thanks in advance.
Brian

Hi Stanton,
When you precess the third party order the purchase requesition will be created to the respective schedule lines so you can get the two different purcahse requesition for the 10 items then you can combine those two purchase requesitions in the purchase order what is the issue.
or you can run another PO for that problem item.
I hope it will not give any problem while creating PO
Thanks,
Murali.

Third Party Process ASN

We have configured a third party process for specific sales orders. We receive an inbound ASN with shipment information and then we create the outbound invoice, directly from the sales order, after we post the inbound invoice. Is it possible, and how, to create an outbound ASN, from our system to the end consumer, based on the information in the inbound ASN? We would prefer not to create an outbound delivery document in our system and would like to generate the outbound ASN off the outbound invoice or the original sales order.
Thanks for the help.
Chris

We have configured a third party process for specific sales orders. We receive an inbound ASN with shipment information and then we create the outbound invoice, directly from the sales order, after we post the inbound invoice. Is it possible, and how, to create an outbound ASN, from our system to the end consumer, based on the information in the inbound ASN? We would prefer not to create an outbound delivery document in our system and would like to generate the outbound ASN off the outbound invoice or the original sales order.
Thanks for the help.
Chris

Tax determination third party process

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