Cost in VPRS varies in Third party Scenario

Hi,
We all know that COST (VPRS condition value) in Invoice is fetched from MIRO in case of Third party sales scenario.
When we have 2 quantity in PO for a particular item, I have completed the MIRO(Vendor Invoicing) & VF01 (Customer Invoicing) for 1 quantity. Then the cost was reflecting in the document.
When I have created a new MIRO for the second quantity and cancelled the MIRO, system is updating the VPRS amount in already saved customer invoice to the extent of tax amount in the cancelled MIRO.
For Example:
PO Quantity - 2 for the material 'MAT12'
1st MIRO - Amount - 816000(incl of tax 16000)
Customer Invoice '123'- Cost (VPRS): 816000 (Initially shown)
2nd MIRO - Amount 816000(Incl of tax 16000)
And Cancelled this MIRO.
After cancelling, Customer Invoice '123' - Cost(VPRS) is 832000 (Got updated to the extent of tax amount in the cancelled MIRO).
CAN ANYONE PLS EXPLAIN WHY THIS UPDATION IN THE COST.
THANKS.
Guru

Hi,
The problem is that we are not "subcontracting" and we are not providing any component to the vendor.
We are selling a product that we are not producing at all (just buying it to an external vendor). So that, this product has Procurement Type = "F" in our location.
Imagine we have a vendor in "Holland" that is producing the finish good. And we are selling that product to two customers (one in Italy and the other in Belgium). All requirements for the italian customer are delivered to our distribution center in Italy, and Sales Orders to that customers are delivering the stock place on that distribution center. For the Belgium requirements there is need to send the stock to our warehouse (Italy) in order to send it later to Belgium
In that case our company has an agreement with the vendor, so that the keep the stock for the Belgium needs (we are not the owners of that stock), and then we create Third-Party Sales Orders.
If you have any experience in such a kind of scenario I would appreciate.
Regards,
Raü

Similar Messages

VPRS Condition amount varies in third party scenario.

Hi,
We all know that COST (VPRS condition value) in Invoice is fetched from MIRO in case of Third party sales scenario.
When we have 2 quantity in PO for a particular item, I have completed the MIRO(Vendor Invoicing) & VF01 (Customer Invoicing) for 1 quantity. Then the cost was reflecting in the document.
When I have created a new MIRO for the second quantity and cancelled the MIRO, system is updating the VPRS amount in already saved customer invoice to the extent of tax amount in the cancelled MIRO.
For Example:
PO Quantity - 2 for the material 'MAT12'
1st MIRO - Amount - 816000(incl of tax 16000)
Customer Invoice '123'- Cost (VPRS): 816000 (Initially shown)
2nd MIRO - Amount 816000(Incl of tax 16000)
And Cancelled this MIRO.
After cancelling, Customer Invoice '123' - Cost(VPRS) is 832000 (Got updated to the extent of tax amount in the cancelled MIRO).
CAN ANYONE PLS EXPLAIN WHY THIS UPDATION IN THE COST.
THANKS.
Guru

Good Morning,
For complete details on the behaviour of VPRS, please refer to the OSS Note 547570 (I have copied the relevant information below):
FAQ: VPRS in pricing
1. How is the cost determined in pricing?
    In the order, the cost is generally taken from the valuation segment
    of the material master. In the billing document, however, it may
    have other sources. Depending on the business transaction, the costs
    can be taken from the goods issue of the billed delivery or, in the
    case of a third-party order processing or individual purchase order,
    from the respective purchase order, the goods receipt or the invoice
    verification in purchasing. As an example, only the goods issue will
    be mentioned here. However, the descriptions also apply to costs
    from purchase orders, goods receipts or invoice verifications. For
    details, refer to Notes 372760 and 547590. These costs are entered
    externally in pricing and included in the value of the VPRS
    condition. The amount is obtained by calculating back amount = value
    / quantity.
4. How can I recognize how the cost was determined?
    Go to the detail display of the VPRS condition. If the condition
    control (KSTEU) is set to 'H', the cost was taken from the goods
    issue. If it set to 'A', it was redetermined from the valuation
    segment of the material master, in case of 'D' or 'E' it was copied
    from the preceding document.
7. Why is my VPRS not zero although my goods issue had value zero?
    For technical reasons, it is not possible within pricing to
    differentiate whether a goods issue with value zero exists or
    whether no goods issue exists. For this reason, in both cases the
    costs are determined from the valuation segment of the material
    master. In this context, also refer to Note 84229.
Here is some more useful documentation on VPRS.
u2022Configure VPRS with condition category G, S, or T
u2022Condition category G: the condition type VPRS goes into the valuation
segment of the material master and determines from here the standard
or
average price (based upon Price Control flag set in transaction MM03)
in the sales document.
In the billing document the value is determined from the post goods
issue document. When the post goods value = 0 the VPRS will be pulled
from the material valuation segment.
Regards,
Martina McElwain
SD - Forum Moderator

Third party scenarios -- problem

Hi Gurus
In third party scenario. The vendor supplies the material and if
1)by unfortunately goods get damaged before reaching to the client
2)client identified some of the materials are poor in quality.
In these scenarios what is the business process and how is this mapped in SAP
I am having these scenarios please give your inputs...
Thanks in advance
Regards
Suddu

Dear Suddu,
Quantity adjustment takes place via the shipping notification and the variance in purchasing can be updated in Controlling using retroactive billing
Order
When the order is created, the specification of material numbers, quantity and conditions takes place at item level. As the material is not available on stock, a purchase requisition is created directly within the sales order.
Purchase Order Processing
The purchase requisition can already be automatically assigned during creation. If not, it is possible to assign the purchase requisition manually. The purchase order is created with reference to the purchase requisition. Quantity and material are transferred from the sales order. The purchase order price can also now be determined via the condition records.
Shipping Notification
When the vendor has sent the material to the customer, they will normally send you a shipping notification, which, amongst other things, contains the exact quantity of material sent. You have the possibility to enter this shipping notification into the system in the form of a dummy goods receipt. It will be posted directly in consumption so that no stocks are created. The quantity of goods received then updates the quantity to be invoiced in the sales order. Therefore, it is possible to create the customer invoice before you receive the incoming invoice from the vendor.
Billing Documents
The billing documents are created on the basis of the order. Since the vendor might not deliver the exact quantity ordered, quantity adjustment takes place via the shipping notification.
Vendor Invoice Verification
The vendor invoice verification can take place after billing. The variance in purchasing can be updated in Controlling using retroactive billing.
Controlling
The revenue and costs will be posted to CO-PA using the billing document.
Regards,
Naveen.

Billing in Third Party Scenario

Hello All,
How does the billing occurs in the third party scenario ?
Regards

Hi,
Third party scenario , in which goods to the customers are delivered from the Vendor and we will settle vendor and bill customer
In this process the material is created with the item category TAS and the schedule line category CS
Create a sales order in VA01 with the material withe General item category group BANS
In the schedle lines in the VA02 of the sales order, you can find the PR (purchase requisition).
Goto ME21n and create the Purchase order with the vendor which is ceated in the xk01
Do MIGO and MIRO for the PO and settle the vendor .
For Customer, do the Billing in VF01.
Here is the flow of Third Party Processing:
PO from Customer
SO item to Purchase requisition creation
PO from Purchase requisition
Goods from Vendor to Customer
MM Invoice creation
Billing document created with reference to Sales Order based on IR qty
Invoice to Customer
regards,
santosh

Delivery Address changes in third Party Scenario

Hi All,
System is not allowing to make changes in delivery address (At PR/ PO Level) for Third party Scenario (Sales Order based).
I had checked the Field Groups of PO/ PR Knowm to me and try to make delivery address field editable. but didnt get any success. Is it Possible to get the dellivery address field in change mode for third party Scenario. If yes, how?
pls. Note: I'm not talking about the Manual third party order processing.
Regards,
S Anand

Why dont you want to make a change at SO level?
From OSS note 550192 - FAQ: Changing third-party and individual PO items
Question: What do I have to consider when I change the ship-to party for the entire sales order or for a third-party item?
Answer: In the third-party scenario, the ship-to party of the third-party item in the sales order is identical with the delivery address of the respective purchase order item. Up to and including Release 4.5, there is no automatic function for a synchronous change so that this must be done manually in both documents. As of Release 4.6, the system automatically updates the delivery addresses from the purchase order items if the ship-to party of the third-party item changes. The change of the delivery address in the purchase order is therefore no longer possible; thus the 'Delivery address' is only displayed in the display mode in the purchasing transaction.
For additional information, refer to Note 204190.

Third-party scenario in APO

Hi expert,
Has some of you manage a third-party scenario in APO?
We have some products that are direcly delivered using a third-party sales order from our vendor, while the same product for another customer is delivered from our stock in our distribution.
Do you have some information? Could you please share your experiencies?
Thanks,
Raü

Hi,
The problem is that we are not "subcontracting" and we are not providing any component to the vendor.
We are selling a product that we are not producing at all (just buying it to an external vendor). So that, this product has Procurement Type = "F" in our location.
Imagine we have a vendor in "Holland" that is producing the finish good. And we are selling that product to two customers (one in Italy and the other in Belgium). All requirements for the italian customer are delivered to our distribution center in Italy, and Sales Orders to that customers are delivering the stock place on that distribution center. For the Belgium requirements there is need to send the stock to our warehouse (Italy) in order to send it later to Belgium
In that case our company has an agreement with the vendor, so that the keep the stock for the Belgium needs (we are not the owners of that stock), and then we create Third-Party Sales Orders.
If you have any experience in such a kind of scenario I would appreciate.
Regards,
Raü

Third party scenario with services

Hi
Is it possible to create PR for services thru Sales order for Third party scenario.
Please suggest.
Thanks

Hi,
as the system creates an MM document from sales order with item category 5 ('S' external -Third-party) for using of materials, you can not enter services into such purchasing items. For handling external services the item categories 9 ('D'), and 1 (B) are used. There is no item category combination for both - join item categories 5 and 9 - available in the standard. Please create a PR in ME51N instead with the concerned order in the accounting data.
Regards,
Edit

Excise in third party scenario

Hi
In third party scenario as we will not delivery the goods to the customer but we invoice the customer,So in this case how will we send the excise document to customer.
As the delivery is not available in the system.
Is this through J1IH.
Please can any one let us know the process which need to be follwed.
Thanks alot.
Regards,
Kumar

Dear Friend,
From your reply, order related billing and vendor sends invoice to you. and then you generate the Customer Invoice against the Vendor invoice and mention the duties being paid by Vendor. (Vendor need to pay the excise duties when he delivered the goods to customer and the same can send
Instead of raising the Excise invoice to the customer, you can raise debit note for the amount he is supposed to pay (based on the vendor sent invoice).
As per Indian tax system, Excise duty (16%) is payable by each manufacturing unit on the value of manufactured goods / on the value added,here in your case you are not the manufaturer.
Please note that it is "NOT POSSIBLE" to create a excise invoice for order related billing in J1IIN transacton.
Normally excise invoice is created when there is a goods movement. J1IIN transaction is programmed in such a way
it will check the delivery document when you enter the billing document to create the excise invoice.
Regards
AJIT K SINGH

Why req MIGO and MIRO in third party scenario

Hello All,
In third party scenario why we req to do MIGO in ref to PO.
In 3rd party we create sales order with item cat TAS.
We got the PR
with ref to PR we create PO.
then we do MIGO and MIRO
also If vendor is delivering the goods why we do the Delivery and PGI and then Invoice
Why not Invoice with ref to sales order.
regards,
abhijit

Hi
In Third Party sales, the Item category is TAS ,if the Vendor directly supplies to the end customer.
In Item category TAS, "Billing Relevance" is "F", i,e. Order related billing as per invoice quantity.
If the Item category of the Third Party item is TAS, then Schedule line category is CS in standard. If you will go to CS, you will find , the "Delivery relevance" field is blank and there is no "Goods movement" also. That means no Delivery takes place against the Sales order, so no goods issue.
This clearly indicates, we do not create any Delivery and no goods receipt takes place in third party sales process, when the vendor directly sends the goods to the customer.
Once the goods are send to the end customer, Vendor creates an invoice and sends to the ordering company. Now, ordering company goes for Invoice verification ,what the vendor has sent to him. We only go for MIRO here and not MIGO.
After that, the ordering company, creates the Customer invoice with reference to the Sales order(placed by its customer) and sends it to its customer.
Complete process:
Once the order is received from the custome(say ABC)r, the company (say XYZ) creates a Sales order ---> Purchase requisition is automatically triggered from the sales order -
> from this Purch requisition a PO is created for the vendor -
> aginst the PO, Vendor delivers the goods to the customer ABC and charge the ordering company,sends invoice for the same to the ordering company XYZ -
> Ordering company XYZ does Vendor's invoice verification and creates a Customer invoice with reference to customer's(ABC) order and sends to the customer ABC.
Some times Vendor sends the goods to the ordering company and then ordering company delivers the goods to its customer.
Vendor does not deliver directly to the end customer in this case.
In this case Item category is TAB and Schedule line category is CB.
Here, Billing relevance is "A" - (Delivery related billing) in the Item category TAB, that means here Delivery takes place and Billing is created with reference to the Delivery created to the customer.
In Schedule line category CB, you will find, 'Delivery relevance" field is activated and there is a movement type "601".
So, Delivery and goods issue both takes place here.
Here we go for both MIGO and MIRO.

Third party scenario with Excise

Hi Friends,
I have come acoss a scenario where I have to give my inputs on various third party scenario and also associated CIN settings and procedures. Out of the proposals being put forward, then the client will decide which one go in for.
1. Goods directly sent to Customer
2. Calling the goods at the plant and then ship the same to customer.
So, query is pertaining to same third party and CIN part.
Request you all to give settings required for executing the third party and CIN part
Thanks in advance.
Shailesh

Hi,
NOrmaly third party sales process ther is no cin is involved, if goods are not comming to u it is directly ship to customer.
comming to 2 nd process cin is involved because goods are comming to your plant and then your going to ship the stocks to customer.
Thanks,
Vasu

Third Party scenario - Fixed vendor.

Hi All.
In third party scenario, I would like to restrict the customer's receibles with perticular vendor only. Is it possible in third party scenario?
Example: In Sales order - We can view the purchase requisition. System sutomatially pick only Y vendor for X customer in purchase requisition. How we can maintain this relation ship in Third party scenario. Like this I need to maintain for so many customers with Vendors.
Thanks & regards
Ugamesh.

Dear All,
I think, We are deviating from the requirement. My question is very clear. I want to fix the vendor for certain customers in third party scenario. For your information I have MM consultants are with me.
I could not understand how source list and Vendor info record will bring the vendor in to purchase requisition as per customer?.
Example: I have customer master 1000, 1001. I have vendor masters 2000, 2001. I want to fix 2000 for 1000 and 2001 for 1001in third party sales. How can we do it through Source list and Vendor info records?
Could you please elborate it? Even my MM consultants are not able to understand linking vendors and customers through source list and info records.
Thanks & regards
Ugamesh.

Third party scenario with subcontracting

Hi
My client has scenario where finished product is produced from vendor and delivered to customer from vendors place and some components for prodcuing finish product are supplied by client.
My client wants to plan material to be given to vendor for producing finish product.
How to map this scenario

Hi,
Please tell me if i wrong, in case of subcontracting you provide the material to vendor and vendor send the material back to you with providing some operations on the same. In your case the material is not come back.
In that case you will go for some workaround.You can map Third party scenario and for subcontracting you can sale or FOC Sale the material to vendor.
Thanks & Regards,
PM

Freight costs to be payable to third party in a PO

Good morning,
In order for freight costs to be payable to third party in a PO (Incoterms of Ex-Works) I believe you need maintain a separate vendor for this condition type, at the time of creation of the PO.
How do you link a condition type to a vendor?
Many thanks,
Matt

Hi Matt Potts,
During creation of Purchase Order, you have to carry out following steps;
(a) Select header condition or relevant PO Line items
(b) Add your Freight condition and add your values in Ammount (based on value or in %)
(c) Select above Freight condition and click condition details (magnifier)
(d) Add your Vendor code in Vendor Field (KOMV-LIFNR)
Bye,
Muralidhara

Interface for all cost object related transtions with third party system

Hello Guru's
I have one required for Functional Specications i.e, i need to create interface for all cost object related transtions with third party system for this purpose i need to create FS. any body please guide how to do..

Hi sreedhar royals
You need to check controlling tables you need to interact. (CSKS, COAS,....) then ask your abaper and project manager to guide you.
Regards

Third party scenarios

Dear friends,
Can any 1 give me complete details @ various Third party scenarios?
My mail id is [email protected]
Regards,
Vishal Jajoo

hi visahl,
Process Flow for 3rd Party Sales
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      *-- Seema Dhar
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
if it helps " Reward points for me"
With regards
Rajesh

Cost in VPRS varies in Third party Scenario

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