The third party processing- IR and SO billing date

Processing the third party sales order, after doing the IR via MIRO, will it update the billing date for the SO item automatically? If so, why some items are updated but the others are not updated?

I don't think it will update the Billing Date. However, In VF while creating Invoice, we can mention the required Date.
Regards,
Rajesh Banka

Similar Messages

Requirement to bill customer before vendor invoice in third party processing

We have a requirement to bill a customer before the vendor invoice in third party processing. The reason behind this is because the vendor send invoices only once in a month and the customer cannot wait for so long to to receive their invoice from the business.
I saw some discussions that the third party processing with shipment notification can be used however when I check the business flow in that case I see the following.
A Third-Party Sales Order is created and a purchase requisition is generated automatically
A list of purchase requisitions to be assigned is displayed
The assigned purchase requisitions are converted into purchase orders
The purchase orders are approved
A statistical goods receipt is posted
The vendor invoice is verified and posted
The billing is created
It clearly says that the customer billing document is only possible after entering the invoice from the vendor. Which would be the best way to fullfill this requirement?

Do you mean the goods issue done by the vendor to the customer in the vendor system? And this quantity will be copied into our ( where the third party order is created) system?
No, MIGO done by in our company system only. May be you might have misunderstood because of my sentence.instead of company i mentioned as Vendor.
For Vendor this process will become as standard sales and he will do PGI. However in our system we do MIGO .
Suppose the customer ordered 10 Qty. Vendor delivered 2 Qty wouldn't the above equation Order qty- MIGO qty= Invoice qty be 10-2= 8? but we should be really billing the customer only for 2 right?
No you have mistaken my idea, it was not a formula just i was giving example.
Billing qty is nothing but it is qty copies from source document to target document.
E
Goods receipt quantity less invoiced quantity
for example order qty is =10 and vendor delivered first time 2 qty to the customer and he billed our company for 2qty and we billed the customer for 2 qty.
And next time let us assume again Vendor delivered 4 more qty and billed us 4qty.And this time when you are billing the customer in VF01 system will propose the 4qty only( total goods receipt qty 6 - already invoiced qty 2).
Hope now you understood the meaning of E(goods receipt qty less invoices qty).
And did you try your requirement as mentioned in my first reply?
thanks,
Srinu.

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

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 .
The process is running fine till commercial invoice , but the problem is in intercompany billing doc. creation.
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 .
5) With the help of this PR no. , i have created a purchase order for vendor which is maintained under co. code 0077 asking for material in plant 1009 which we need to export / supply to the customer.
6) The value of material per piece in the P.O. is coming from the material master record -> Accounting 1 view - > Moving av. Price .
7) Now, the Purchase order is saved . With the help of this P.O. no. , goods reciept ( MIGO )is done .
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........

Third Party Processing

We have been using the Third Party Processing process, where a billable sales order is entered (item category TAS) a purchase req created, and converted into a PO, invoice verification is done, and then the billing is done . . . Sales order closed once all billing done.
Now we are being asked to use the Third Party Process but with free sales orders. Also based on the type of sales order, the GL account and Cost Center may be different.
Today when we ship a free Demo, when the delivery is goods issued it hits a finished goods account and an expense account.
Today when we do a TAS order the PO shows a Cost of Sales Account, the Invoice Verification hits the AP account and the Cost of Sale account, and the Billing doc hits the AR account and the Expense account.
What I have done so far is create a new Item Category what is similar to the Free Item Category we have been using . . . it is not relevant for pricing or billing . . . yet also similar to TAS.
When I create the order, I do get a purchase req, which is type NB with Account Assignment Category of Z. The GL account, which is a Cost of Sales account defaults . . . this must be in configuration, and it is grayed out. The cost center from the Sales Order does come into the Req.
The Third Party Process was set up by consultants 11 years ago, and we have never had to do anything to change it, so it is a new area to us. So can anyone provide steps to continue the set up of this. I am thinking if the we could change the GL to an expense account we might be closer to it, but I am not sure. Or should a new Account Assignment Catergory be created.
Any suggestions would be appreciated.
Edited by: Diane Thacker on Jul 17, 2009 4:53 PM

So it sounds like you are doing Free Third Party Order Processing, but I am not clear on what you have written.
Are you saying it sounds like what I have done with item and scheduled line is correct? Or do you need to understand further what I have done?
Also I think you are saying we can create a PO where we can assign a GL without a cost element . . . How is that possible? Is there a setting in configuration that allows for this situation that you can enter the GL you want?
Also, if this is possible. Once we create the PO, and then do the Invoice Verification . . . will the sales order automatically close or is there another step to close the order . . . since no billing to close it?
Thanks!

Re Third Party Processing Interview Questions

Hai Friends
This is the similar type of Questions I faced in the interview.
a. Explain the third party process
b. What is the item category used?
c. How will a PR or a PO get created automatically? What are the settings required?
d. Is it necessary to make a Goods Receipt before creating the Invoice Receipt? What are the setting involved?
e. When does a customer invoice get created?
pl mail me the solutions to these Questions to my mail id <REMOVED>
Message was edited by:
        Yathish K

Hi
Third party order processing is as follows:
Assume three companies X, Y and Z
X - The company,
y - The customer
Z - Vendor
When ever X gets a PO from Y to supply some goods, X has an option of either manufacturing those goods or procuring those goods.
If he is procuring the goods, there are two methods that are generally followed:
Method 1) After receiving the PO from Y, X creates a sales order against Y.
Now at the same time he also creates a PO to a vendor Z to produce the goods
Z produces the goods and supplies to X
X receives the goods from Z
Then X delivers the same goods to Y.
After that X invoices Y and Z invoices X.
Note : Here there is no direct/ Indirect relation between Z and Y.
This process is known as Trading Process. and the Material here is created with Material type HAWA.
The other method is a Third party order processing method:
Here the glaring difference is that instead of Z supplying the material to X and X in turn supplying the same material to Y.
X authorizes Z to supply the material to Y on his behalf and notify him once the delivery is complete.
Now Z supplies the material to Y and acknowledges the same to X.
Z will send a copy of delivery acknowledgement and invoice to X.
After receiving the delivery confirmation and invoice from Z, X has to verify the invoice and this process is known as invoice verification and is done in SAP through Tcode MIRO.
The next step for X is to create an invoice and submit to Y
Only after the invoice verification document is posted then only X can create an invoice for Y.
This is the business flow that is followed for third party order configuration.
There are few steps that have to be configured to enable the system to function as mentioned above.
Step1)
If you are always followwing a third party process for a material then you have to create the material using item category group BANS.
The procument type should be marked as External procurement (F) in MRP 2 view of the material master record.
if you are not always allowing third party order processing then u can create a material master record with item category group as NORM and the procurement type should be marked as ( X) meaning both types of procurment ( in house manufacturing and external procurement).
step 2)
the item category in the order should be manually changed as TAS.
For that you need to confugure the item category determination
ord type + item cat grp + usge + Hiv level = Item cat + Manual item cat
OR + NORM +      +       = TAN . + TAS
OR + BANS +       +       = TAS
Step 3)
make sure that during the item category configuration for TAS you need to mark relevnat for billing indicator as F
step 4)
The schedule line cateogry for this type should be CS.
make sure that you mark subsequent type as NB - purchase requisition in this schedule line category as this will trigger the purchase requision order immediately after the creation of the sales order and the PO to vendor is created against this purchase requiesion.

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 - 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.

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

The third party PDF printer

Hello,
What mean the third party PDF? and how we can install this product?
Thanx,

With the installation of Adobe Acrobat you will get a printer named 'Adobe PDF'.

Third party process:Billing relevance 'B' order related and 122

I am facing the following problem: in Order related Billing according to order qty, the sales order bills what has been received on the third party PO in MM.
The following situation occurs: When I order 100, receive 100 and Bill 100: The sales order is fully billed. When I later return a quantity to the vendor in MM with a 122 referring to the PO, the sales order remains fully billed. There is no way I can find out which Sales order needs to be take action on (credit). Can someone help me finding out how I can select these sales orers after a 122?

Ok, no problem.
At the client we have a very specific flow where receipts on a third party PO need to be billed daily when they happen and every receipt (better: any goods movement) needs a seperate billing document.
This is not covered in SAP standard. I wrote a program (functional) how SAP should find the billing relevant movements:
1) Go to the billing due list daily at 0:00
2) Check all related third party PO's and the movements
3) Check the sales flow of the relevant SO. Check which material doc has been billed (via reference field in the billing doc)
4) For all items not yet billed call function module GN_INVOICE_CREATE. (bill in case of 101 and 123 and credit in case of 102 and 122)
This works all fine until I found above issue: Fully billed items are removed from the billing due list even if there is a 122 or 102 afterwards on the PO. So I redesigned the program.
1) at 0:00 Select all movements on the system date for the specific flow (PO type and plant) via Material documet header and segment.
2) Via the account assignment in the material doc you have the Sales order. Then the same applies:
3) Check the sales flow of the relevant SO. Check which material doc has been billed (via reference field in the billing doc)
4) For all items not yet billed call function module GN_INVOICE_CREATE. (bill in case of 101 and 123 and credit in case of 102 and 122)
Here I am not using the due list and it solved my problem.

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).

How to handle the cost in third party process

Hi experts,
As the request, my client has some trading goods. the customer buy them from my client. but there is no stock in my client. for this transaction, my client send PO to the vendor and the vendor delivers the products to the customer directly. After my client recieve the shipping notification, they create the invoice to end customer. So i want to use the Third-Party Function.
But i have a confuse. How dose sap process the cost of trading goods(HAWA) in standard? you know, there is no stock for the trading goods, how to get the condition value of cost(VPRS)? Is there any special setting for the trading goods master data or some parameters in other place?
can anyone give some supports? Thank you very much.

Hi Dave,
You can capture vendor price in billing document as a cost.
Check the following settings.
1) select the determine cost field in third party item category.
2) Billing relevance F
3) check the VPRS condition type in pricing procedure. It will come after total amount.
VPRS statistical
Subtotal = B
Requirement = 4
Now create a sales order with third party material and maintain price E.g 500 USD
system will take VPRS value from material master in sales order level. E.g 300 USD. ( In billing level only system copies vendor price as a cost )
Do the following transactions after sales order.
Create a purchase order ME21N with reference to PR( take the PR number from Sales order)
In purchase order maintain price in item conditions tab E.g 320 USD.
Goods receipt MIGO
Vendor invoice MIRO
Now create a Billing document with reference to sales order number.
Here system takes VPRS cost 320 USD(PO price) instead of 300 USD which we maintained in Material master.
Regards,
Chandra

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

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,

The third party processing- IR and SO billing date

Similar Messages

Maybe you are looking for