Subcontrac vendor delivers finished goods to customer. (Third party?)

The business process is as follow:
We provide components to the subcontract vendor and they will delivery the finished goods directly to the customer. How to acheive this scenario in SAP?
Can there be a statistical GR like third party processing? (and statistical PGI?)
Detail explanation will be appreciated. Thanks a lot.

You can have an intransit storage location which does not have a physical presence.
You can perform GR against PO in that storage location, and then dispatch the material by picking from that storage location.
Regards,
Aroop

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

Cannot create data source using custom third-party driver

Hi,
I've just installed Weblogic Server 10.3.6 and I'm getting problems creating a generic data source using my own third party jdbc driver which I had no problems doing in Weblogic Server 10.0; this is what I did in 10.0;
before starting server i put my driver jar file (and any jar files it needed) in the lib folder of the domain user project which weblogic appends to the classpath during server startup
inside weblogic console -
1. first page - provided a data source name and jndi name and selected 'other' for database type
2. second page - selected 'other' for jdbc driver
3. third page - deselected the global transactions
4. fourth page - provided database name, username, host name, port, and password.
5. fifth page - provided driver class, url, database user name and password (didn't bother with the test)
6. Selected target server
I then saved and activated changed and was done.
This what I did for 10.3.6
did the same thing I did for 10.0 before server start up
inside weblogic console -
1. first page - provided data source name and jndi name and selected 'other' for database type
2. second page - selected 'other' for jdbc driver
3. third page - deselected the support global transactions
4. fourth page - here's where things are different - page only asked for database username and password, which I give.
One this page I get a criptic error saying 'errors must be corrected before proceeding' - no other message as to what these errors might be either in the console or the cmd window of the server. I tried making changes to the provider authenticiation of the security realm but no luck. I tried following password creation requirements, I even tried proceeding to the next page without entering anything on this page, all no luck. I have no idea what's going on.
Hope someone can help.
Sam.

I've fixed the class issue but am struggling a bit with SQL Server authentication. I'm running in mixed mode (originally set to Windows authentication but I've modified the security setting), I've enabled TCP/IP and Named Pipes, I've created a user (who I can log in to SQL Server Mgmt Studio successfully with), but still get a connection refused error.
Any insight? Thanks.

Scenario : 1 SC Vendor; 1 Finished Good; Multiple BoM

Hi Experts .... Client have a situation where they have multiple BOMs for 1 Item and they send the different Raw Materials to One Subcontracting vendor for Job-Work processing.
Is there any way to enable the selection of BoM at the time of creating Sub-Contracting PO ???

Thx for your valuable comments Prashant, but the problem is how to choose which BOM to select ... is there any setting/ configuration
I tried Product Version concept ... but that too is not consistent .. info record gets updated somehow and the choice for Product version also doesn't come after making 1 PO

Freight from PO or goods receipt into sales order in Third party drop ship

Hello!!!
We have a requirement where the freight charged by vendor in third party drop ship sales order scenario should show up in the billing document to customer. So we will create a sales order with TAS item category. This will create PReq and PO subsequently. Once the vendor delivers the goods to customer and we do the goods receipt in the system, we will bill the customer. While we bill we want to bring the actual freight charged by vendor to the customer billing document. Also we bill the customer as soon as we do the receipt and do not wait for the vendor invoice.
I am not sure if we can do this standard SAP but would like to if anyone has come across this scenario and what is the approach if we need to do this. We can have vendor send us the freight while doing the goods receipt but not sure how to transfer the value to sales order or to billing document directly.
Any help or idea is appreciated.
Thanks in advance,

During GRN we cannot enter any value apart from the excise or customs duty, therefore the freight that you have incured at actuals cannot be captured during GRN and therefore cannot be transfered to the invoice also.
While creating invoice to the customer you can insert a freight condition type and enter the freight value manualy.
Generally in third party scenario we can only invoice the cust after purchase booking has taken place. In your case you want the cust invoice to be created based on grn, for that you have modify the copy control settings.
raj

Third party without Batch mgt.

Hi Gurus,
I have scenario. My material is batch managed in plant. for sales scenario and delivering to customer.
Now i want to buy this material from vendor and delivery directly to customer(Third party).
Issue is !
When i do goods receipt the system ask for the batch no. (Since batch is managed in plant level in material master).
Is there any way to stop this batch check while we do Third party order.
Cheers...Gopi

But to pay to vendor we need to do goods receipt.
Otherwise system block the invoice for payment. Because of the Quantity reason.
I dont need a goods receipt for 3rd party orders to be able to pay, I have not encountered a block for payment so far. If there is a different quantity send than ordered, then you enter this quantity while posting the invoice in MIRO.
The only alternative to avoid a batch is to use a different material number (not batch managed) for 3rd party orders.

Third Party Order close if some quantity undeliver to Customer by vendor

Dear Friends
In third Party Sales Process How to close the sales order
1. Customer Place Order = 10 pc
2. Purchase Order created = 10 Pc
3. Vendor Deliver the goods to customer = 8 Pc
and MIGO and MIRO done on 8 Pc and Vendor unable to deliver remaining Quantity to Customer.
That time business want to close the sales order. Then how we close the sales order and convert into 8 pc. By this it will not show that 2pc of that item is open.
Please give me detail of it
Thanking you
Arun

Hello Arun,
there is a very good FAQ-note how to change the quantity in a third-party-process, the note number is 550192 (here one extract):
Question: I want to decrease the quantity for a third-party or
individual purchase order item that has already been ordered. What
do I have to consider?
Answer: If you decrease the quantity in the sales order, the system
issues a warning message that this item was already ordered, but the
system does not prevent the change. However, you should consider
that the original quantity has already been ordered and that you
must therefore maintain the purchase order system-conforming. There
is no automatic function here except for the ALE scenario because
the maintenance is connected to an activity because you generally
have to inform your vendor on this change in quantity. This subject
is also explained in Note 210942.
Here the relevant extract from note 210942:
The updated order quantity is only transferred to the purchase order if
the 'ALE relevant' or as of Release 4.6B 'Create purchase order
automatically' flag (Transaction VOV7, field TVAP-ALEKZ) is activated in
the item category.
If this flag is deactivated in the item category, the system does not
carry out an automatic adjustment of the purchase order quantity to the
order quantity. The purchase order must be maintained manually.The
quantities confirmed in the purchase order are automatically transferred
to the schedule line of the third-party order or the individual purchase
order.
Best regards,
Joerg

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 .

Third party Partial Delivery by vendor

Dear Experts,
During third party process, if the vendor does partial delivery to the customer i.e. 50 instead of 100. now my question is can we process the remaning 50. if yes how?
Regards...

Hi,
Process
VA01 - Create sales order(Qty 100 ) >> ME52N - PR generated after save of OR >> ME21N - Convert PR in to PO >> Then vendor will ship goods to customer(qty 50 ) >> MIRO - Invoice receipt from vendor for qty 50 >> VF01 - then invoice issue to customer for qty 50
Now again vendor will ship remaining qty 50 and will send you invoice then enter that vendor invoice and again create final invoice to customer.
Kapil

Third party: trigger customer invoice from MIRO

Hi all,
this is the requierement: after the MIRO of the vendor invoice it's ncessary to trigger automatically the customer invoice (third party flow).
Do you know specific userexit to use? Other solutions?
Let me know for further information.
Thank you in advance,
G

Dear Giorgio
Please clarify me why you want the Customer Invoice along with Vendor Invoice??
Suppose in Third party, you will ask your vendor to supply goods directly to your customer-
But here the issue is when you will raise customer invoice and Vendor invoice?
Suppose let us take one scenario--Customer came and you delivered the goods from your vendor to your customer in this week itself.The agreed terms between you and your customer is 30 days.So normally you need to create Customer invoice after he/she receiving the goods.
Why are you waiting in creating Customer invoice can happen at 89-90th day as per your requirement.
(Suppose the Agreed payment terms between you & Your vendor is 90 days--So normally you will be raising an invoice MIRO at 89th or 90th day to your vendor)
Clarify me on this.
Phanikumar

How do we track Serial No of Finished Goods in 3rd year of Sales

What is the tracking system of finished goods with their respective Serial.No during:
a) The current financial year
b) The previous financial year
c) Received during the warranty period ie in the 3rd year.
How do we track the Sales Invoice No and Delivery Challan No of the Finished Goods in the 3rd year of Financial period.
Ex Goods sold in the year 2006 with 5 year warranty and now we are in 3rd year and the Goods have come back under Warranty Period.User needs to check the Serial No, Sales Invoice No, Party Name......
Is there any Query......... or System by which we can find out...

Hi,
When you delivery the finished goods to Customer, "Customer Equipment Card" and "Service Contract" will be automatically created. It has link to the Business partner.
In your case, You are providing Warranty for 5 yrs. Then your service contract will be created for 5 yrs for that Business partner. You can link the Warranty type in the Business Partner Master data itself. (ie., There will be an field called "Warranty" in BP master). According to it the Service contract will be created.
"Customer equipment card" will be created for all serial number managed items automatically when delivery is made.
So, when the finished goods come into your company for service, You will open "Service Call". In that Service call you will enter the customer code. After entering the customer name just come to "Serial Number" Field and click tab. The Serial number items which is sold to that customer will be listed. Choose the finished goods which comes for service from that list.
I hope this could help you.
Regards
Raja.S

Finished Goods Report

Dear Experts,
In our legacy Inventory Managment system we have develop following layout for Finished goods periodic report. (From date to Date)
Materiral Description, UOM, Opening , Receipt , Return , Transfer, Dispatch , Reprocess, Repack, Replace, Adjust , Closing
Progressive Receipt, Progressive Dispatch.
as per above formate we have devlop in our Legacy system. Now we are going to implement SAP in our organization. Pl. guide us how to develop above report in SAP MM Module.
Opening -- Opening Stock
Receipt -- means Production receipt
Return -- Means Customer return
Transfer -- Meanse one plant to another plant or depot.
Dispatch -- Means sales
Reprocess -- Means Material return to production for reprocee ( Butter return for making ghee like that)
Repack -- Means convert one pack size to another pack size ( 50 x 400gm big pack convert in 10 x 400gm small pack)
Replace -- Replace finished goods to customer.
Adjust -- Destroy rejected finished goods.
Closing - Closing Stock
Progressive Receipt : meanse cummulative of Production receipt from date to date.
Progressive Dispatch : Meanse cummulative of Production dispatch form date to date.
Pl. help me how to incoporate this report in sap. or acceptable any users have good idea to develop the report and also give suggestion from any organization which is using in different way.
Thanks a Lot.
Piyush Dave

THANSK FOR REPLY PL. CLOSE

In Third party sales, Part of MM..?

Hi guru's
Can explain about third party sales and what is major part of work for MM in that.
1.Please send me the overall flow in Third party sales process with Transaction codes.
thanks
sap-mm

THIRD PARTY SCENARIO
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. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.
Process Flow
the processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally can be ordered only from third-party vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, if you manufacture your own finished products, you may also want, from time to time, to be able to order the same type of product from other vendors.
Processing Third-Party Orders in Sales
Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.
Automatic third-party order processing:-
if a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.
Manual third-party order processing
In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.
If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.
If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.
You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.
Processing Third-Party Orders in Purchasing
when you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.
Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.
All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order
you process third-party items by creating a normal sales order. In overview for the order, you can then overwrite the default item category (TAN in the standard system) with the special item category for third-party items: TAS
Billing Third-Party Orders
If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If, however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F.
In the first case, the third-party order is considered to be completely billed only when the invoiced quantity equals the order quantity of the sales order item. In the second case, each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the next vendor invoice is received.
If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.
You can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in Customizing for copying control for billing at item level.
FOR YOUR PROCESS Individual Purchase Orders WELL GIVE THE RIGHT SOLUTION
Individual purchase orders are used when your customer orders goods from you that are not in stock and must be ordered from one or more external vendors.
Process Flow
During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the vendor ships the goods directly to you (unlike third party order processing, where the vendor ships directly to your customer). You then ship the goods to your customer. While the goods are part of your inventory, you manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be used for other purposes.
Process Flow for 3rd Party Sales
Customize the third party sales in summary:
Prerequisites for 3rd party sales,
Purchasing org,
purchasing group,
assign the Purchase org to company code
assign Purchase org to plant,
should not maintain the stock in material, it should be trading goods,
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 *--
i think this will be helpful to you

Third party sales order report

Hi
I got to prepare a report and the description is as follows:
"Report for discount pricing conditions manually entered in third party sales orders."
"Discount price reporting for manual pricing conditions in sales order processing (not in billing)"
"The report should reflect manual pricing discounts captured in the third party sales order.The relevant (third party) document types will be confirmed.Currently we have the following pricing condition type used for manual discount: YRD2- Manual Distr. Discount % YRD3- Manual Distr. Discount fixedThis report will facilitate the monitoring on the discounts given to the distributors.We still need to confirm the complete list of discount pricing conditions for the report.The report should extract the manual discount information based on the following criteria:Sales organization, period, sales order, customer (wholesaler and/or third party) and pricing condition type.Summing per sales order, customer, period should be enabled.The discounts should be displayed in document (sales order) currency. "
I didnt understand the following to get the purpose of this report:
1. what is this third party sales order ?
2. What is manual pricing condition?
3. what is manual pricing condition? how many types of conditions are there like this?
4. What is the actual analysis that can be made from the output of this report?
Please explain them in detail. Thank you.

THIRD PARTY SCENARIO
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. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.
Process Flow
The processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, if you manufacture your own finished products, you may also want, from time to time, to be able to order the same type of product from other vendors.
Processing Third-Party Orders in Sales
Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.
Automatic third-party order processing
If a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.
Manual third-party order processing
In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.
If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.
If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.
You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.
Processing Third-Party Orders in Purchasing
When you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.
Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.
All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order
You process third-party items by creating a normal sales order. In overview for the order, you can then overwrite the default item category (TAN in the standard system) with the special item category for third-party items: TAS
Billing Third-Party Orders
If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If, however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F.
In the first case, the third-party order is considered to be completely billed only when the invoiced quantity equals the order quantity of the sales order item. In the second case, each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the next vendor invoice is received.
If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.
You can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in Customizing for copying control for billing at item level.
FOR YOUR PROCESS Individual Purchase Orders WELL GIVE THE RIGHT SOLUTION
Individual purchase orders are used when your customer orders goods from you that are not in stock and must be ordered from one or more external vendors.
Process Flow
During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the vendor ships the goods directly to you (unlike third party order processing, where the vendor ships directly to your customer). You then ship the goods to your customer. While the goods are part of your inventory, you manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be used for other purposes.
Goods receipt will be posted when ever the vendor ships the goods to our customer.
We will do this transaction in SAP using MIGO.
Invoice receipt is done when the Vendor sends us the invoice.. ( I.e Billing ).
It can be done using MIRO.
THe above two steps are standard and manual. There are many other ways that the actual process can happen. If the client follows EDI standards then the Goods receipt and Invoice receipt can be done through IDOCs automatically.
Process Flow for 3rd Party Sales
Customize the third party sales in summary:
Prerequisites for 3rd party sales,
Purchasing org,
purchasing group,
assign the Purchase org to company code
assign Purchase org to plant,
should not maintain the stock in material, it should be trading goods,
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 *--
Regards.

Problem in third party sales

HI ALL
CAN ANY ONE GIVE ON THE BRIEF INTRODUCTION ON THIRD PARTY ORDER / INDIVIDUAL PURCHASE ORDER.
PLS GIVE ME REPLY ASAP.......
REGARDS
RAO

THIRD PARTY SCENARIO
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. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.
Process Flow
the processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally can be ordered only from third-party vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, if you manufacture your own finished products, you may also want, from time to time, to be able to order the same type of product from other vendors.
Processing Third-Party Orders in Sales
Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.
Automatic third-party order processing:-
if a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.
Manual third-party order processing
In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.
If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.
If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.
You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.
Processing Third-Party Orders in Purchasing
when you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.
Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.
All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order
you process third-party items by creating a normal sales order. In overview for the order, you can then overwrite the default item category (TAN in the standard system) with the special item category for third-party items: TAS
Billing Third-Party Orders
If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If, however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F.
In the first case, the third-party order is considered to be completely billed only when the invoiced quantity equals the order quantity of the sales order item. In the second case, each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the next vendor invoice is received.
If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.
You can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in Customizing for copying control for billing at item level.
FOR YOUR PROCESS Individual Purchase Orders WELL GIVE THE RIGHT SOLUTION
Individual purchase orders are used when your customer orders goods from you that are not in stock and must be ordered from one or more external vendors.
Process Flow
During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the vendor ships the goods directly to you (unlike third party order processing, where the vendor ships directly to your customer). You then ship the goods to your customer. While the goods are part of your inventory, you manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be used for other purposes.
Process Flow for 3rd Party Sales
Customize the third party sales in summary:
Prerequisites for 3rd party sales,
Purchasing org,
purchasing group,
assign the Purchase org to company code
assign Purchase org to plant,
should not maintain the stock in material, it should be trading goods,
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
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

Subcontrac vendor delivers finished goods to customer. (Third party?)

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