Doubt about third party process

Hello SD Consultants.
Recently i joined in a company...so here we implement third party process.. My colleague has implemented third party process.
here he has done...va01...me21n...migo...miro and vfo1......but when i take coaching they dint say about migo in third party...so
friends please help me..what is the relevance of migo here...we are not receiving any goods from vendor...so whats the use...
Thanking you

Dear K. Ram
MIGO - goods recipt, MIRO - invoice verification.
Third party process sales order > PR > P.O > MIRO > Invoice (delivery done by vendor to customer)
Individual purchase order (IPO) sales order > PR > P.O > MIGO > MIRO > Invoice (delivery done by vendor to company n then to customer).
You are right concept wise. Ask ur friend or team leader and try to have a discussion on business process.
Also check the Item category group is BANS (Material master), Item category TAS (Sales order) for third party .
If it is showing BANC, TAB. It is IPO as mentioned above and u have been disguised with business process explanation from your friend/ seniors or they din't understand the process.
You can discuss n debate , also raise a point of reducing the master data by eliminating migo transaction in third party.
This is what been taught to us too.
Regards
Pavan Kumar

Similar Messages

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

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,

Delivery date should be confirmed in third party process

Dear Experts,
I have one doubt in third party process i.e., while creating sales order how can we confirm the delivery date because here vendor deliver the goods to customer but if customer is asking for delivery on a particular date then how can we assure him the delivery date is there any tracking in standard or how to solve this requirement.

Dear Venkatesh
In the third party Process, the Vendor will deliver the goods. That is correct. so as per my experience the delivery dates will get copied to Sales order ----- PR ----then PO. Then the vendor will also deliver the goods on the date which is mentioned copied into PO only.
Also refer to the below link to gain complete knowledge to clear your doubt.
http://help.sap.com/saphelp_scm700_ehp02/helpdata/EN/c1/42c95360267614e10000000a174cb4/frameset.htm
Thank you
Srikanth

Query about third party sale process

Hi,
SD experts,would u please tell me the acctual spro configuration of "third party sale process".

Hi Anirban,
First, there is a note 550388 which is the FAQ note for customizing of third-party process.
Actually the main configuration is just the item category and schedule line category.
You could refer to TAS and TAB in standard system to create third party order and individual purchase order.
You could also refer to the online documentation at
http://help.sap.com/saphelp_47x200/helpdata/en/70/a7853478616434e10000009b38f83b/frameset.htm
Sales->Special Business Process in Sales->Third Party Process
Best regards,
Smile

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).

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,

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

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 - 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

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 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

Doubt about third party process

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