Third Party SO Processing

Hi all,
We have a standard third party processing configured in our business.
As per the standard scenario, the incoming invoice from the vendor updates the billing quantity, so that the customer-billing document is only possible after entering the invoice from the vendor.
That means billing document cannot be generated unless we receive the invoice from the vendor.
However, the user wants to alter this & wants to be able to generate the billing even in the absence of an invoice.
Please advise if it is possible. If yes, please let me know of the steps.
Thanks
Kaveri

This status is determined:
1. for an item with relevancy for billing B - order-related in
    accordance with order quantity (Transaction VOV7) if the sales order
    was created with the third-party item.
2. for an item with relevancy for billing F - order-related in
    accordance with invoice receipt quantity if an invoice receipt was
    posted in MM for the third-party item.
So you have to customize your system according to your requirements.
regards,
Ramana

Similar Messages

Goods return from customer in third party business process

hi all sd gurus
here I ve adoubt regarding returns in third party business process query is how a customer send his foulty goods n how he gets his credit note plz explain eleborately plz help me out
thankx in advance
santosh

It has not been addressed in standard SAP. For further detais, go through Note 751609 - Returns for third-party process (cancellation)
thanks
G. Lakshmipathi

Cannot do MIGO in Third Party Sales Process with shipping notification

In the Third party sales process with Shipping notification,the item category for the material is TAS (Billing relevance=R),item category group is BANS.
Intially sales order is created,then using me21n with reference to purchase requisation purchase order is created,then in MIGO stage i used the PO No there but i get the message no item found in PO.
what adjustment have to be done in order to do MIGO

Refer following SDN thread, by that you will be able to get overview on best practices about Third Party Sales & necessary configuration you need to follow for statistical GR:
- Third party direct shipment (II)
Further maintain Billing Relevance for Item Category as G - Order-related billing of the delivery quantity.
Regards
JP

Accounting Entries hit in Third party Sales Process

Hi,
Can anybody tell which accounting entries are hit when we create the following entries in third party sales process
1.When Sales Order is created.
2.When PR is Created
3.When ME21N is done
4.MIGO
5.MIRO
please provide your valuable suggestion..
Thanks...

Hi,
1. When Sales Order is created.
No FI Entry
2. When PR is Created
No FI Entry
3. When ME21N is done
No FI Entry
4. MIGO
(GBB-VAY) COGS - 3rd Party A/c - Dr
(WRX) GR/IR Clearing A/c - Cr
5. MIRO
Vendor Account - Cr
GR/IR Clearing A/c - Dr
6. VF01
Customer Account - Dr
Sales Revenue A/c - Cr

Billing in Third party order process

Hi,
In the last stage of TPO Process we need to do billing.kINDLY inform what is the reference document when we want to do billing for a third party order process in VF01, Is it sales order?

Hi,
In the Third Party processing,
You refer the Sales order for creating the Billing document to the end customer
In the Item category level of the Third party, one field which control the Billing relevance
If you check the BILLING RELEVANCE for TAS item category, it is F which says, the billing will be based on the MIRO ( vendor invoice)
In general for Third Party, Vendor will directly send material/Goods to the customer and that notification will be sent to the company.
If say, out of 10 PO items, Vendor has send only 5 quantity to the customer and we have to bill the customer for only 5 quantities so once the billing is generated it will refer to the invoice quantity of the MIRO
Hope it is clear,
regards,
santosh

Third party order process- tolerances

Hi
our client is facing a problem.
Normally a SO will be issued and then the PO is created with ref. to
SO (and with same quantity). GR and IR-L will be booked, then SO will appear
in billing due list and customer
invoice will be created.
But now If PO quantity and GR quantity are not identical, SO is not appearing in billing due
list. do we set up any tolerances for these in custozmizing.
what would be the probable reason for this
can any one please throw some light on this.
Regards
GP

Hi GP,
Check the billing relevant of Item category used in Sales order item . This should tell you what is happeneing in your scenario.
If PO qty and GR qty missmatch occurs , MM config has to be checked to see if any tolerance has been set.
If SO is not appearing for billing , then you need to check is SO dependent on your GR or IV for billing.
Assuming it as TAS item category and BANS item category group and third party ordering process.
Billing Relevance:
F Order-related billing doc. - status according to invoice qty ( Bill after IV done with IV qty)
G Order-related billing of the delivery quantity ( Bill after GR with GR Qty)
Thanks,
Sudhi

Third Party Order processing in case of multiple vendors

Hi,
With the third party order processing; purchase requisition gets created automatically based on the scheduling item category. This process works fine when there is only one vendor. In case if we have multiple vendors for the same product; purchase requisition gets created with out any vendor reference. These orders needs manual intervention to assign the source of supply.
In stead of this; we would like to automate the process of the selecting the vendor automatically? Is there any by means? Currently we do populate the corresponding vendor partner function in the sales order item level. Can this be used as reference vendor during purchase requisition creation process? Is there any configuration or customitization?
Have any one come across this?
Thanks for the answer..
Regards,
Nagarjuna

There's a default vendor in source lists.

Third-party order processing issue

Dear,
In the Third-party order processing,i have finished SO-PR--PO successfully.
But when i Posted Invoice Receipt for the Purchase Order using T-CODE:MIRO after finishing Posting the Goods Receipt,it could't work.
It showed the message'Invoice document still contains messages'.
I can't find the problem.
Buy the way it is just in the IDES system,and the data is the std.
How can i resolve it ?
TKS!

hi,
When doing Miro , There is Tab on top named Messages. Click on it and assigned to your output type and enter communication method.
You ll be able to complete your MIRO.
Revert if not resolved
Regards
Amit Gupta

Third Party order processing- PR creation

Hi
In Third Party Order processing , system creates single Purchase requisition for the all line items in the Sales order. Our requirement is to create individual PR for each line item in the sales order. For Example , if the sales order is having two lines items (10 and 20) with item category TAS, system should create two purchase requisition against line 10 and 20. Is there any customization available to control this ? if not how can we achieve this functionality.
Thanks in advance for your immediate response.
With regards,
Joseph Anand B

Joseph,
1. First you need to maintain ZTA1 and ZTA2 two item categories.( Replica of TAS)
2. Proceed with Item category determination for ZTA1 and Keep ZTA2 as Manual Item Category both the item category should have same details.
3. Proceed Creating Schedule line categories ZTA1 + MRP type = C1 (Replica of CS - LEG)
Similarly create another ZTA2 + MRP type = C2 (Replica of CS - LEG)
Now when you raise a third party order enter the material ( 2 line items) and price and press enter. The first line item will have ZTA1 and second line item also will have ZTA1 change it manually to ZTA2.
save the document.
Try this i hope it should work
Note: But like one of our friend likely pointed out what if it were to be more than 2 items.... just check it out. Does it sound perfect....
Regards
Sathya

Delivery address of PO in third-party order processing

Dear sir,
The delivery address in PR&PO of third-party order processing will auto take the 'Ship-to-party' from the SO, but in my company due to special process we want the delivery address default in 'Sold-to-party' of SO.
Can someone tell me how to cinfigure that or enhancement exit should be used?
thanks!
Joseph

There's a default vendor in source lists.

Reg Third party order processing.

Hi Gurus,
Please help me on the following questions.
1. In third party order processing how costing is updated?
2. How automatic purchase requisition will be generated in third party order processing?
3. Explain about Third party returns process step wise?
Thanks in advance,msi.
Regards,
Vamsi P

HI vamsi
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      *--
In Details:----
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
reward if helpful.
Regards,
Prashant

Third party Procurement process

Hi all,
Can anyone explain me the third party procurement process steps involved in MM .
Thanks ,
Srinivas Nomula .

Dear Srinivas,
Do you think of third party process or subcontracting?
In both cases you can use (and please use) the search function of the forum and SAP online help before opening your own thread.
E.g.
http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b91be43ad11d189410000e829fbbd/frameset.htm
http://help.sap.com/saphelp_erp2005/helpdata/en/dd/560287545a11d1a7020000e829fd11/frameset.htm
Third party process in MM
Third party process - error
Regards,
Csaba

Third party order process

HI SD Gurus,
I would like to know the process (mainly the list of documents), how is followed for Third party order processing in Indian scenerio.
When the vendor is supplying the goods to the customer, what are all the documents needs to be carried along with the consignment?
When the Business raising Invoice to customer, what are all the documents needs to be sent to customer?
In particularly, who will pay excise duty and sales tax etc,.
Expecting your valuable response.
In case, if you need more clarity, please feel free to ask me...
Regards,
Mani

Hi Swamy & SD Gurus,
Let me explain more on my question.
In Third party order processing, Vendor is supplying the goods to Customer on behalf of Business. Here is my doubts :-
1) What are all the documents to be sent to Customer by the Vendor?
2) Who will pay the excise duty (Whether the Vendor or Business)? (as per my knowledge, Excise duty is on Manufacuruing)
3) Who will pay the Sales Tax? (to my knowledge Sales Tax is only at the time of Sales) - In this case, whether the sales tax is applicable or not
When the Business sends the Invocie to cutomer -
1) What are all the document will be sent to customer by Business?
2) When Business raises the Invoice to customer, how is Pricing , Excise duty, Sales Tax are calculated?
Here I don't like to know the setting in SAP (however this is later stage), at least, would like to know the business process...
Hope you understand the questions......
Thank you
Regards,
Mani

Third Party Business Process Within Purchasing /IM(Without SD)

Hi Friends,
We are planning to implement third party order process within Purchasing to procure the office stationary materials for the business.
The problem here is how to deal with the materials returns to supplier after original invoice is processed?.
1. Requisition created
2. PO created in 30-Jan-2007
3. Material supplied and Goods Receipt done. in 31-Jan
4. Vendor submits invoice to Payable section and Invoice also processed
till 31st Jan-07
5. Now user would like to return the materials to vendor for wrong material or poor quality on <b>1st Feb</b>. Since invoice is already processed... how to account this returns in next invoice payment is the question.
I tried looking for the above business scenario(material returns) in various places, but no luck. Appreciate, if you could give me pdf relevant to above process or suggest possible solution.
Regards
KK

Hi Stev,
Many thanks for your prompt response. I do agree that this process should be done through normal PR/PO with account assignment for direct consumption's.
In my view, Third party through SD will have more advantage in billing the customer apart from vendor invoice. Without SD, we can still take the advantage of third Party process, in terns of user address management(mandatory) in the PR and analysis point of view. Conceptually they do serve the purpose more or less same within Purchasing without SD.
The problem here in the both the process is invoice processing, as huge amount of PR/PO will be raised for low value items ranging from $10 to $300. Vendor will be submitting the consolidated invoice by weekly or monthly. Since MIRO only provides PO creation date and not GR/Movements Posting date in the selection criteria, it would be quite difficult to include the GR reversals/returns, after the original invoice processed for the order created in previous period. Moreover, this will increase the workload on Accounts payables in entering invoices for small amount.
The above is the situation for explained case.
1. Invoice Processed for the Pur.Orders created in Jan-07(One inv against many po's)
2. Reversals/Returns of material taken place on 1st -Feb for the same order which is created and paid in Jan.
Only solution I could think of is to enable ERS and generate invoice GR based. This would cater for Invoice processing and credit memo for reversals/returns.
However, appreciate, if you could share your expertise to overcome the issue and give your valuable comments on the process.
Regards
Kumar

Third Party Remittance Process

Hi All,
Wage type '/484' is a technical wage type used for one of the taxes in the US. Our client just started using this tax type for a new tax for the state of New York. SAP has the tax wage types set to post in third-party remittance by default, even though we do not use third-party remittance for taxes (we only use third-party remittance for garnishments).
To avoid using Third Party Remittance I have changed the processing class 78 value for '/484' from u201C2u201D to BLANK. So that this will stop it from being included in the third-party remittance process.
Actually, I have not worked much on this Remittance process. I have made changes in Development system but have not transported them to quality.
But, I want to know how would i test it. I need to test in two scenario's:
1. Testing in quality so that i can see remittance happening (When Processing Class '78' value is '2').
2. Testing again in quality how remittance is getting stopped for Wage Type '/484' (When Processing Class '78' value is '0').
So, basically I want to know how we can check (verify) for remittance happening in the system for a particular Wage Type.
Regards,
Avinash

transaction: PC00_M10_U500
This transaction runs the payroll driver (the same one that we run payroll with, program RPCALCU0). It defaults to the schema u201CU500u201D. Use this standard schema if no custom specific modifications are done.
The testing for this is to run the third-party remittance process and verify that the error no longer occurs for an employee with wage type /484.

Third Party SO process

Hi,
We have a requirement in our company, we are planning to use the third party SO process, the below are the steps.
1. Create sales order VA01, in that item category will be TAS.
2. Automatically PR will get create.
3. PR needs to get convert to PO ME57N
4. MIGO (Goods Receipt)
5. MIRO (For PO)
6. Invoice for Sales Order.
When we do the MIGO (goods receipt) the stock will come under the blank storage location, but as per our client requirement the stock needs to come under the 10 Storage location (Unrestricted use).so that the same stock can use for the other customers as well when itu2019s require.
Thanks & Regards,
Murali.M

Hello Murali,
I think you might get some misunderstanding between third-party process and individule purchase order process.
In third-party process, it is the vendor who delivers the goods to the customer. Which means that you won't touch the goods by yourself.
Then I don't think it is possible for other customers to use this kind of goods.
In individule purchase order process(item category TAB), the goods will be delivered to us first. And we deliver the goods to our customer like the normal process.
You could see that there is a special stock indicator E set for TAB. You could try with setting this as blank and see whether the goods could be posted to unrestricted-use stock.
If it doesn't work, then I would recommand you to create a thread in ERP Material Management side, it is more MM issue other than SD.
Thanks and best regards,
Smile

Third Party SO Processing

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