Third Party Process Issue

Hello Friends,
Need Your Inputs for below issue"
in third party process: SO is created with 2 line items, -->PR-->PO--> Vendor delivers only 1 item and MIRO is done for it,
But
During Creation of Customer invoice Both Line items are considered in the Invoice(F2)
1st line item with the Value of X Rs, and 2nd Line item with zero value ( as there is no delivery done to customer and hence no invoice via MIRO)
Requirement is:
The 2nd Line item should not be considered at all during Customer invoice creation.
Item cate used is TAS with billing relevance F (i,e standard config)
Kinldy help
regards

hello srinu..
SO is created with 2 line items, PR is auto created. 1 PO is created (with 2 line items)
MIRO is done w.r.t PO line item 10 only,
then when i create customer invoice from SO i get 2 line items, for 1st line item there is value populated. 2nd line item has zero value,
The requirement is that if there is no Processing of SO for line item 2 ,, then it should not be populated in the customer invoice.
Regards

Similar Messages

Goods issue in third party process

Hi All,
I have done third party process. But I am not clear for goods issue to the customer.
We will place goods at customer premises at the time of goods receipt with purchase order reference. In this flow will place goods to customer place directly. Why should I go once again goods issue to customer and which document reference can I do.
Thanks
Nagi

Hi
In Third party scinerio their is no need to issue stock to customer or vendor,
In system when we do GR stock is consumed that momvent, after GR quantity is not update.
Regards
Chandrajit Patil

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 as inventory value

Dear Experts,
Kindly need help for third party process.
We have third party process which triggered from Sales Order. This Sales Order will automatically created PR. PR will be convert into PO.
The issue is we would like to have goods in Sales Order (or Purchase Order in next process) as inventory value when receiving goods.
Can third party process be treated as inventory value when receiving it?
Thank you in advance.
Best Regards,

In third party process your customer gets the goods directly from your vendor.
You only make a statistical GR ("phantom" GR) in the system, the goods are physically received by your customer and your customer's inventory will increase after your customer's GR and not yours. Knowing this your question doesn't make any sense I think.
If your third party process is not a real third party process and you receive the goods physically and after that you sell it your customer you can use individual PO scenario.
http://help.sap.com/erp2005_ehp_04/helpdata/EN/dd/5601d4545a11d1a7020000e829fd11/frameset.htm
Regards,
Csaba

Third party process - error

Dear all,
In the third party process, have we to create outbound delivery?
I have created PO from PR of a third party sales order. And now, i don't understand to delivery to customer.
Pls tell me solution.
If we have to create outbound delivery from that sales order, i get errors:
Item category TAS is not defined and Item category TAS is not defined, so item 000010 will be disregarded. I also checked in VOV4, VOV6, VOV7.
Thank you,

Hi
In third party scenario the material is delivered to your customer thro out side vendor
You are billing your customer
Vendor is billing you for the material he has delivered to your customer
Here we dont make any delivery
Process Flow for 3rd Party Sales
Customize the third party sales in summary:
1. Create Vendor XK01
2. Create Material u2013 Material Type as "Trading Goods". Item category group as "BANS".
3. Assign Item Category TAS to Order type that you are going to use.
4. A sale order is created and when saved a PR is generated at the background
5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO
7. Goods receipt MIGO
8. Goods issue
9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the configuration and,   therefore, there is no delivery process attached in the whole process of Third party sales.
10. Billing
SD - 3rd party sales order Create Sales Order
VA01
      Order Type
      Sales org, distribution channel, div
      Enter
      Sold to
      PO #
      Material
      Quantity
      Enter
      Save
SD - 3rd party sales order View the PR that is created with a third party sales order
VA01
      Order Number
      Go to Item Overview
      Item ->Schedule Item
SD - 3rd party sales order View the PR that is created
ME52N
      Key in the PR number
      Save
SD - 3rd party sales order Assign the PR to the vendor and create PO
ME57
      Key in the PR number
      Toggle the "Assigned Purchase Requisition"
      Execute
      Check the box next to the material
      Assign Automatically button
      Click on "Assignments" button
      Click on "Process assignment"
      The "Process Assignment Create PO" box , enter
      Drag the PR and drop in the shopping basket
      Save
SD - 3rd party sales order Receive Goods
MIGO_GR
      PO Number
      DN Number
      Batch tab , click on classification
      Serial Numbers tab
      Date of Production
      Flag Item OK
      Check, just in case
      Post
      Save
SD - 3rd party sales order Create Invoice
MIRO
      Invoice Date
      Look for the PO , state the vendor and the Material
      Check the box
      Click on "Copy"
      Purchase Order Number (bottom half of the screen)
      Amount
      State the baseline date
      Simulate & Post
      Invoice Number
      *Invoice blocked due to date variance
SD - 3rd party sales order Create a delivery order
VL01N
      In the order screen , go to the menu Sales Document , select "Deliver"
      Go to "picking" tab
      State the qty and save
SD - 3rd party sales order Create a billing document
VF01
      Ensure that the delivery document is correct in the
      Enter
      Go to edit -> Log
      Save
Hope the process is very clear to you now
Regards
Raja
Edited by: ramanathan raja on Sep 18, 2008 3:06 PM

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

Third party process in MM

Hi friends,
i need all your help in configuring third party process in MM.please guide me by giving step by step process with t-codes.
your advise is considdered more valuable.
Regards,
william

Hi,
Process Flow for Third party process with SD-MM Integration
Customiztion requires is
1) Defining the Purchasing org,Purchasing group,
2) Assign the Purchase org to company code
3) Assign Purchase org to plant,
Material type used should be Trading goods -- HAWA
1. Create Vendor XK01
2. Create Material with Material Type as "Trading Goods" & Item category group as "BANS".
3. Assign Item Category TAS to Sales Order type
4. Sale order is created and in the background a PR is generated
Note down the PR number along with Sale order no
5. With reference to PR a PO is created (ME21N).
PO will be sent to the Vendor with delivery address as your Customer.
6. Vendor delivers the goods to the Customer and raises Invoice to the Plant.
7. Goods receipt MIGO & stock update in the Plant ( Not physically)
8. MIRO for Vendor to clear the Payment
9. Create the outbound delivery for sales order
10. Post Goods issue for delivery
11. Billing for the customer
rgds
gsc

About third party process

hi friends,
in third party order processing what is the need of creating purchase requisition, cant we create purchase order with out refrence to puchase requisition?
Thanks and regards
sudhakar

hi
Yes, wat you said is correct we can create PO with Reference to PR.
In some situation we need to show this information to the auditing people ( Internal Process ) for that they need to show the reference doct, beacause of this order only we are created PO..
And also one more scenario
One customer is palcing material for 100 item but we have only 80 in that case we need to deliver the good the customer from our third party vendor in this sitution also we need some refrence document which is linked to Our Order..
Because we need to create PR
Ihope it is clear, Rewards if it is Usefule
Regards
Durga Prasad
Third Party Process
Customize the third party sales in summary:
1. Create Vendor XK01
2. Create Material Material Type as "Trading Goods". Item category group as "BANS".
3. Assign Item Category TAS to Order type that you are going to use.
4. A sale order is created and when saved a PR is generated at the background
5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO
7. Goods receipt MIGO
8. Goods issue
9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.
10. Billing
SD - 3rd party sales order Create Sales Order
VA01
Order Type
Sales org, distr chnl, div
Enter
Sold to
PO #
Material
Quantity
Enter
Save
SD - 3rd party sales order View the PR that is created with a third party sales order
VA01
Order Number
Goto Item Overview
Item ->Schedule Item
SD - 3rd party sales order View the PR that is created
ME52N
Key in the PR number
Save
SD - 3rd party sales order Assign the PR to the vendor and create PO
ME57
Key in the PR number
Toggle the "Assigned Purchase Requisition"
Execute
Check the box next to the material
Assign Automatically button
Click on "Assignments" button
Click on "Process assignment"
The "Process Assignment Create PO" box , enter
Drag the PR and drop in the shopping basket
Save
SD - 3rd party sales order Receive Goods
MIGO_GR
PO Number
DN Number
Batch tab , click on classification
Serial Numbers tab
Date of Production
Flag Item OK
Check, just in case
Post
Save
SD - 3rd party sales order Create Invoice
MIRO
Invoice Date
Look for the PO , state the vendor and the Material
Check the box
Clilck on "Copy"
Purchase Order Number (bottom half of the screen)
Amount
State the baseline date
Simulate & Post
Invoice Number
*Invoice blocked due to date variance
SD - 3rd party sales order Create a delivery order
VL01N
In the order screen , go to the menu Sales Document , select "Deliver"
Go to "picking" tab
State the qty and save
SD - 3rd party sales order Create a billing document
VF01
Ensure that the delivery document is correct in the
Enter
Go to edit -> Log
Save

Third party PO issue

Hello Friends,
I have scenario as below:
I am purchasing packing material X (with value say Rs 5)from a vendorA & deliver it directly to vendor B ,from whom I am purchasing material Y (say value Rs 100) & which is packed in material X.
The client wants to receive the material back material Y packed in X , and pay him only Rs 100 , but the value updation of this should get as Rs 105.
If required I can make a new material master for the packed material received from the client.
Kindly guide me in mapping this scenario.
Thanks in Advance

Yes, it is again third party processing but with a difference, no item category, no account assignment category and no sales order is required. In subcontracting process normally components are delivered from the companyu2019s warehouse. But sometimes to meet some business specific requirement, a purchase order is placed to vendor with instruction that the components to be delivered at an address of subcontracting vendor instead of the companyu2019s warehouse address. On receipt of the purchase order, the vendor will deliver the goods/components directly to subcontractor address.
Purchase Order for Components
Under this process a standard purchase order with a different delivery address is created. In the delivery address dialog box the vendor number is entered and the SC vendor box is checked. Checking the box is the deciding factor for the components that these are posted to subcontractor stock at the time of goods receipt.
Goods Receipt of the Components
On receipt of the confirmation from the subcontractor that the components have arrived at his address, goods receipt can be entered for the purchase order. On entering the goods receipt, the components are posted directly to the stock of the material provided to vendor at plant level. Quantity and value are also updated at plant level.
Goods Receipt for End Products
On receipt of end product from subcontractor, a goods receipt for the subcontract order is entered in the same way as for a standard purchase order. But this good receipt will be again different from the good receipt for a standard purchase order as it covers following two types of goods movements.
Goods receipt items for the materials supplied by the vendor Goods issue items for the components
Valuation The goods receipt is valuated at the subcontract price (services charges) plus the value of the components consumed.

Third Party Processing

We have been using the Third Party Processing process, where a billable sales order is entered (item category TAS) a purchase req created, and converted into a PO, invoice verification is done, and then the billing is done . . . Sales order closed once all billing done.
Now we are being asked to use the Third Party Process but with free sales orders. Also based on the type of sales order, the GL account and Cost Center may be different.
Today when we ship a free Demo, when the delivery is goods issued it hits a finished goods account and an expense account.
Today when we do a TAS order the PO shows a Cost of Sales Account, the Invoice Verification hits the AP account and the Cost of Sale account, and the Billing doc hits the AR account and the Expense account.
What I have done so far is create a new Item Category what is similar to the Free Item Category we have been using . . . it is not relevant for pricing or billing . . . yet also similar to TAS.
When I create the order, I do get a purchase req, which is type NB with Account Assignment Category of Z. The GL account, which is a Cost of Sales account defaults . . . this must be in configuration, and it is grayed out. The cost center from the Sales Order does come into the Req.
The Third Party Process was set up by consultants 11 years ago, and we have never had to do anything to change it, so it is a new area to us. So can anyone provide steps to continue the set up of this. I am thinking if the we could change the GL to an expense account we might be closer to it, but I am not sure. Or should a new Account Assignment Catergory be created.
Any suggestions would be appreciated.
Edited by: Diane Thacker on Jul 17, 2009 4:53 PM

So it sounds like you are doing Free Third Party Order Processing, but I am not clear on what you have written.
Are you saying it sounds like what I have done with item and scheduled line is correct? Or do you need to understand further what I have done?
Also I think you are saying we can create a PO where we can assign a GL without a cost element . . . How is that possible? Is there a setting in configuration that allows for this situation that you can enter the GL you want?
Also, if this is possible. Once we create the PO, and then do the Invoice Verification . . . will the sales order automatically close or is there another step to close the order . . . since no billing to close it?
Thanks!

Requirement to bill customer before vendor invoice in third party processing

We have a requirement to bill a customer before the vendor invoice in third party processing. The reason behind this is because the vendor send invoices only once in a month and the customer cannot wait for so long to to receive their invoice from the business.
I saw some discussions that the third party processing with shipment notification can be used however when I check the business flow in that case I see the following.
A Third-Party Sales Order is created and a purchase requisition is generated automatically
A list of purchase requisitions to be assigned is displayed
The assigned purchase requisitions are converted into purchase orders
The purchase orders are approved
A statistical goods receipt is posted
The vendor invoice is verified and posted
The billing is created
It clearly says that the customer billing document is only possible after entering the invoice from the vendor. Which would be the best way to fullfill this requirement?

Do you mean the goods issue done by the vendor to the customer in the vendor system? And this quantity will be copied into our ( where the third party order is created) system?
No, MIGO done by in our company system only. May be you might have misunderstood because of my sentence.instead of company i mentioned as Vendor.
For Vendor this process will become as standard sales and he will do PGI. However in our system we do MIGO .
Suppose the customer ordered 10 Qty. Vendor delivered 2 Qty wouldn't the above equation Order qty- MIGO qty= Invoice qty be 10-2= 8? but we should be really billing the customer only for 2 right?
No you have mistaken my idea, it was not a formula just i was giving example.
Billing qty is nothing but it is qty copies from source document to target document.
E
Goods receipt quantity less invoiced quantity
for example order qty is =10 and vendor delivered first time 2 qty to the customer and he billed our company for 2qty and we billed the customer for 2 qty.
And next time let us assume again Vendor delivered 4 more qty and billed us 4qty.And this time when you are billing the customer in VF01 system will propose the 4qty only( total goods receipt qty 6 - already invoiced qty 2).
Hope now you understood the meaning of E(goods receipt qty less invoices qty).
And did you try your requirement as mentioned in my first reply?
thanks,
Srinu.

Problem in third party processing billing document

dear all,
I am facing problem in creating the billing document for third party processing.
The error is : Item category ZEXM TAS cannot be invoiced by using billing type ZFAZ.
I think the problem is in copy control for billing document item . Kindly tell the solution.
Thanks...

Dear Buddi ,
Now , the billing document is getting saved after changing the copy control for item category.
But , the system is giving error ( The accounting document is not generated ) .
I have checked all the settings in VKOA against the account keys maintained in pricing procedure for this merchant exports case.
One another problem related to this issue is : Which setting is required to capture the Price maintained in item - > conditions at the VA01 level in EUR or USD . I have maintained the condition record in EUR in VK11 , but still while making order , the error is coming mandatory condition type ZBPR( Basic Price ) is missing .
Awiating your response .

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

Third Party Process Issue

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