Return Of goods in Third Party Process

How to Take back goods  Return of Third Party Sale Process?
Is Following Process Correct?
1)Third Party Order
2)Third Party Invoice(Dispatch from Vendor to Customer)
3)Return Order(with ref. to Invoice)
4)Return Delivery
5)Credit Memo
what are the Excise implications?
Reg,
Amol

SAP best practice does not tell you to create a return order and retrn delivery for 3rd party shipments. Generally, you would not like to take back the goods in your own plant for goods that were delivered by a 3rd party.
The customer would directly send back the goods to the 3rd party and you just issue a credit memo to the customer (can be w.r.t the original order or invocie). The company will then create a debit memo to the vendor.
If your client takes back the goods in his own warehouse, then you can follow the process of return delivery or else it is not required .

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

  • 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

  • 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.
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    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

  • Free Goods in Third Party

    Hi..
    Please send me configuration steps of Free Goods in Third Party..
    Thanks in Advance
    Shriniwas

    Free goods cannot be used in make-to-order production, third-party order processing and scheduling agreements.
    This is the Limitation of setting up free goods
    Cheers

  • 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 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 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

  • 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

  • PO based billing in third party process

    How can the Sales Billing be based on the PO net price in a third party process?
    The copying requirements are set up with price source A = Purchase Order
    And the pricing type is = C (copy manual and redet. others)
    The billing quantity is = E (GR based)
    ...but still the billing net value seem to be taken from the sales order and not from the PO?
    We want to bill the customer whenever we have done partial goods receipts for the PO item.

    hi,
    in standard you have only limited possibilities (it's working only for VPRS).
    Let's say your condition is PR00 in the PO. If you wan't this in your billing document, you have to have it in your pricing procedure in the same line, with the same name and same text:
    PO
    n. 1. PR00 standard price
    invoice
    n. 1. PR00 standard price
    Balazs

  • Error while doing GR in third party process

    Dear Friends,
    While doing Third party process, at GR (w.r.t. inbound delivery) the following message appears “Purchase order 4500000087 has no items” and stops creating GR. But the P.O has the Item. Do have any clue?
    Thanks,
    Hari.

    Hi Hariharan,
    In standard third party process you won't get the goods physically they are delivered by your vendor directly to your customer. In this process there's no meaning of creating inbound delivery I guess...
    You can do statistical goods receipt ('ghost GR' as it was called by someone in SD forum) but even this GR isn't a must (it's based on your invoicing scenario).
    I'm not sure but I'm afraid you cannot create inbound delivery for it if your settings are proper.
    BR
    Csaba

  • GR in Third Party Process

    Friends
    I read threads regarding Third Party Process but it made me more confused. Jus want some clarification.
    1.Does GR take place in third party process or not and if not then how can we make it happen.
    2.We want customer invoice to be created before MIRO. Can we do it. If yes then how.

    Hi,
    1) There are two types of Third Party Processes: -
    a) Third Party Process without Shipping Notification
    b) Third Party Process with Shipping Notification.
    Third Party Process without Shipping Notification
    In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor.
    The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document can only be created after entering the invoice from the vendor.
    Process flow: Third party Sales Order --> Convert purchase requisitions to purchase order --> Approval of purchase orders --> Invoice verification  --> Billing
    Third Party Process with Shipping Notification
    For this process, the vendor sends a shipping notification. 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.
    The vendor then sends a shipping notification. After that a statistical goods receipt is posted. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document can only be created after entering the invoice from the vendor.
    Process flow: Third Party Sales Order --> Convert Purchase Requisitions to Purchase Order --> Approval of Purchase Orders --> Post Statistical Goods Receipt  --> Invoice verification  --> Billing
    So, technically the 3rd Party Sales w/o SN is commonly used - whereby no GR is required. GI and GR process is between the vendor and the customer in the Sales Order. Once customer confirmed received, only then there will be incoming invoice from the Vendor, which then MIRO and Billing follows..
    2. Standard SAP practice.. it is recommended to perform MIRO before Billing, as the vendor has to advice us that our customer has received the goods of the quantity ordered, which only then we can bill the customer according to the quantity received by the customer.
    Thanks.
    Hope this helps.
    Rgds.

  • 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 .
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    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 .
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    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........

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