Third Party Business Process Within Purchasing /IM(Without SD)

Hi Friends,
We are planning to implement third party order process within Purchasing to procure the office stationary materials for the business.
The problem here is how to deal with the materials returns to supplier after original invoice is processed?.
1. Requisition created
2. PO created in 30-Jan-2007
3. Material supplied and Goods Receipt done. in 31-Jan
4. Vendor submits invoice to Payable section and Invoice also processed
till 31st Jan-07
5. Now user would like to return the materials to vendor for wrong material or poor quality on <b>1st Feb</b>. Since invoice is already processed... how to account this returns in next invoice payment is the question.
I tried looking for the above business scenario(material returns) in various places, but no luck. Appreciate, if you could give me pdf relevant to above process or suggest possible solution.
Regards
KK

Hi Stev,
Many thanks for your prompt response. I do agree that this process should be done through normal PR/PO with account assignment for direct consumption's.
In my view, Third party through SD will have more advantage in billing the customer apart from vendor invoice. Without SD, we can still take the advantage of third Party process, in terns of user address management(mandatory) in the PR and analysis point of view. Conceptually they do serve the purpose more or less same within Purchasing without SD.
The problem here in the both the process is invoice processing, as huge amount of PR/PO will be raised for low value items ranging from $10 to $300. Vendor will be submitting the consolidated invoice by weekly or monthly. Since MIRO only provides PO creation date and not GR/Movements Posting date in the selection criteria, it would be quite difficult to include the GR reversals/returns, after the original invoice processed for the order created in previous period. Moreover, this will increase the workload on Accounts payables in entering invoices for small amount.
The above is the situation for explained case.
1. Invoice Processed for the Pur.Orders created in Jan-07(One inv against many po's)
2. Reversals/Returns of material taken place on 1st -Feb for the same order which is created and paid in Jan.
Only solution I could think of is to enable ERS and generate invoice GR based. This would cater for Invoice processing and credit memo for reversals/returns.
However, appreciate, if you could share your expertise to overcome the issue and give your valuable comments on the process.
Regards
Kumar

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

Regardign sap mm elobarate the Third party business process .

Hi
Can any body share the some light on the sap mm
Third party business scanario how it mapped in sap what prerequsite are needed for this it will be helpful with one example ,thanks.
Thanks and Regards,
shaikh.

Hi Shaik,
Please refer the below link it may help you............
http://help.sap.com/bestpractices/BBLibrary/Documentation/J54_BPP_EN_US.doc

Third party business process

In 3 rd party business before vendors invoice (MIRO) we can create invoice to customer(VF01) . In the following scenario how can we justify
Here the case is customer ordered 50 quantity of material. And vendor delivered only 30 quantity of material how can we invoice customer for 50?
Thanks

It is not a standard configuration.
Sales Invoice for 3rd party is not allowed before MIRO. Because in copy ctrl. between OR and F2 for item cat. TAS - billing qnty. - is "F" - which means w.r.t. Invoice Receipt qnty.
Standard system has been modified in your case.
According to Standard system it is compulsory to do a invoice receipt.
However, in certain businesses they need invoice to be raised before MIRO. Mostly because customers pay late and companies want to raise bills as early as possible. For short receipt - customers raise Debit notes.
Thanks

Third party customization process

pls send me third party customization process.
It's very urgent.
pls.....................................................

http://help.sap.com/saphelp_46c/helpdata/en/e6/4a6dc89e0311d189b70000e829fbbd/frameset.htm
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
rewards if it helps

Query about third party sale process

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

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

Third party Order Processing PPT Presentation:

Hi, Gurus!
I am asked to give PPT presentation on the subject topic, so can any one help me with a good PPT.
Its very urgent.
Full points for good PPT.
Thanking you gurus.
Sushil Kumar

Hello friend,
I dont think you will get a PPT for a small topic like Third party. Please go through the details mentioned below hope that will help you in your presentation.wishing you all the best.
Third-Party Order Processing
Purpose
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.

Cannot do MIGO in Third Party Sales Process with shipping notification

In the Third party sales process with Shipping notification,the item category for the material is TAS (Billing relevance=R),item category group is BANS.
Intially sales order is created,then using me21n with reference to purchase requisation purchase order is created,then in MIGO stage i used the PO No there but i get the message no item found in PO.
what adjustment have to be done in order to do MIGO

Refer following SDN thread, by that you will be able to get overview on best practices about Third Party Sales & necessary configuration you need to follow for statistical GR:
- Third party direct shipment (II)
Further maintain Billing Relevance for Item Category as G - Order-related billing of the delivery quantity.
Regards
JP

Third Party Order processing in case of multiple vendors

Hi,
With the third party order processing; purchase requisition gets created automatically based on the scheduling item category. This process works fine when there is only one vendor. In case if we have multiple vendors for the same product; purchase requisition gets created with out any vendor reference. These orders needs manual intervention to assign the source of supply.
In stead of this; we would like to automate the process of the selecting the vendor automatically? Is there any by means? Currently we do populate the corresponding vendor partner function in the sales order item level. Can this be used as reference vendor during purchase requisition creation process? Is there any configuration or customitization?
Have any one come across this?
Thanks for the answer..
Regards,
Nagarjuna

There's a default vendor in source lists.

Third-party order processing issue

Dear,
In the Third-party order processing,i have finished SO-PR--PO successfully.
But when i Posted Invoice Receipt for the Purchase Order using T-CODE:MIRO after finishing Posting the Goods Receipt,it could't work.
It showed the message'Invoice document still contains messages'.
I can't find the problem.
Buy the way it is just in the IDES system,and the data is the std.
How can i resolve it ?
TKS!

hi,
When doing Miro , There is Tab on top named Messages. Click on it and assigned to your output type and enter communication method.
You ll be able to complete your MIRO.
Revert if not resolved
Regards
Amit Gupta

Third Party order processing- PR creation

Hi
In Third Party Order processing , system creates single Purchase requisition for the all line items in the Sales order. Our requirement is to create individual PR for each line item in the sales order. For Example , if the sales order is having two lines items (10 and 20) with item category TAS, system should create two purchase requisition against line 10 and 20. Is there any customization available to control this ? if not how can we achieve this functionality.
Thanks in advance for your immediate response.
With regards,
Joseph Anand B

Joseph,
1. First you need to maintain ZTA1 and ZTA2 two item categories.( Replica of TAS)
2. Proceed with Item category determination for ZTA1 and Keep ZTA2 as Manual Item Category both the item category should have same details.
3. Proceed Creating Schedule line categories ZTA1 + MRP type = C1 (Replica of CS - LEG)
Similarly create another ZTA2 + MRP type = C2 (Replica of CS - LEG)
Now when you raise a third party order enter the material ( 2 line items) and price and press enter. The first line item will have ZTA1 and second line item also will have ZTA1 change it manually to ZTA2.
save the document.
Try this i hope it should work
Note: But like one of our friend likely pointed out what if it were to be more than 2 items.... just check it out. Does it sound perfect....
Regards
Sathya

Reg Third party order processing.

Hi Gurus,
Please help me on the following questions.
1. In third party order processing how costing is updated?
2. How automatic purchase requisition will be generated in third party order processing?
3. Explain about Third party returns process step wise?
Thanks in advance,msi.
Regards,
Vamsi P

HI vamsi
Customize the third party sales in summary:
1. Create Vendor XK01
2. Create Material Material Type as "Trading Goods". Item category group as "BANS".
3. Assign Item Category TAS to Order type that you are going to use.
4. A sale order is created and when saved a PR is generated at the background
5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO
7. Goods receipt MIGO
8. Goods issue
9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and,   therefore, there is no delivery process attached in the whole process of Third party sales.
10. Billing      *--
In Details:----
SD - 3rd party sales order Create Sales Order
VA01
      Order Type
      Sales org, distr chnl, div
      Enter
      Sold to
      PO #
      Material
      Quantity
      Enter
      Save
SD - 3rd party sales order View the PR that is created with a third party sales order
VA01
      Order Number
      Goto Item Overview
      Item ->Schedule Item
SD - 3rd party sales order View the PR that is created
ME52N
      Key in the PR number
      Save
SD - 3rd party sales order Assign the PR to the vendor and create PO
ME57
      Key in the PR number
      Toggle the "Assigned Purchase Requisition"
      Execute
      Check the box next to the material
      Assign Automatically button
      Click on "Assignments" button
      Click on "Process assignment"
      The "Process Assignment Create PO" box , enter
      Drag the PR and drop in the shopping basket
      Save
SD - 3rd party sales order Receive Goods
MIGO_GR
      PO Number
      DN Number
      Batch tab , click on classification
      Serial Numbers tab
      Date of Production
      Flag Item OK
      Check, just in case
      Post
      Save
SD - 3rd party sales order Create Invoice
MIRO
      Invoice Date
      Look for the PO , state the vendor and the Material
      Check the box
      Clilck on "Copy"
      Purchase Order Number (bottom half of the screen)
      Amount
      State the baseline date
      Simulate & Post
      Invoice Number
      *Invoice blocked due to date variance
SD - 3rd party sales order Create a delivery order
VL01N
      In the order screen , go to the menu Sales Document , select "Deliver"
      Go to "picking" tab
      State the qty and save
SD - 3rd party sales order Create a billing document
VF01
      Ensure that the delivery document is correct in the
      Enter
      Go to edit -> Log
      Save
reward if helpful.
Regards,
Prashant

Third party order process

HI SD Gurus,
I would like to know the process (mainly the list of documents), how is followed for Third party order processing in Indian scenerio.
When the vendor is supplying the goods to the customer, what are all the documents needs to be carried along with the consignment?
When the Business raising Invoice to customer, what are all the documents needs to be sent to customer?
In particularly, who will pay excise duty and sales tax etc,.
Expecting your valuable response.
In case, if you need more clarity, please feel free to ask me...
Regards,
Mani

Hi Swamy & SD Gurus,
Let me explain more on my question.
In Third party order processing, Vendor is supplying the goods to Customer on behalf of Business. Here is my doubts :-
1) What are all the documents to be sent to Customer by the Vendor?
2) Who will pay the excise duty (Whether the Vendor or Business)? (as per my knowledge, Excise duty is on Manufacuruing)
3) Who will pay the Sales Tax? (to my knowledge Sales Tax is only at the time of Sales) - In this case, whether the sales tax is applicable or not
When the Business sends the Invocie to cutomer -
1) What are all the document will be sent to customer by Business?
2) When Business raises the Invoice to customer, how is Pricing , Excise duty, Sales Tax are calculated?
Here I don't like to know the setting in SAP (however this is later stage), at least, would like to know the business process...
Hope you understand the questions......
Thank you
Regards,
Mani

Third Party SO process

Hi,
We have a requirement in our company, we are planning to use the third party SO process, the below are the steps.
1. Create sales order VA01, in that item category will be TAS.
2. Automatically PR will get create.
3. PR needs to get convert to PO ME57N
4. MIGO (Goods Receipt)
5. MIRO (For PO)
6. Invoice for Sales Order.
When we do the MIGO (goods receipt) the stock will come under the blank storage location, but as per our client requirement the stock needs to come under the 10 Storage location (Unrestricted use).so that the same stock can use for the other customers as well when itu2019s require.
Thanks & Regards,
Murali.M

Hello Murali,
I think you might get some misunderstanding between third-party process and individule purchase order process.
In third-party process, it is the vendor who delivers the goods to the customer. Which means that you won't touch the goods by yourself.
Then I don't think it is possible for other customers to use this kind of goods.
In individule purchase order process(item category TAB), the goods will be delivered to us first. And we deliver the goods to our customer like the normal process.
You could see that there is a special stock indicator E set for TAB. You could try with setting this as blank and see whether the goods could be posted to unrestricted-use stock.
If it doesn't work, then I would recommand you to create a thread in ERP Material Management side, it is more MM issue other than SD.
Thanks and best regards,
Smile

Third party order processing in Thailand

Hi,
does anyone know that for third party order processing in Thailand, where goods are shipped directly from the vendor to the customer, is it a legal requirement for Thailand to keep track of the in and out movement of the goods in SAP although the goods did not actually come in to the company before going to customer?
If that's the case, how can we handle this in the SAP system? Do we need to do goods receipt and then goods issue out from the inventory to record all the movement for the direct shipment?
please can anyone shed any lights on the above.
Thank you.
KT

Hi,
the third party process is as fillows:
1. Item category is TAS and schedule line should be CS
2. MM01 general item category group is BANS
3. item category determination should be in T_184 table ORBANSNIL+NIL=TAS
4. schedule line detrnination should be TAS+NIl=CS
5. process OR (VA01) and get the purchase requisition number from VA02
6. wrt PR create purchase order.
7. wrt PO verndor supplies stock directly to ur customer
8. vertually u do GR in MIGO, that goes to directly stock consumption because ur accounts have to be updated to that extent.(u dont do delivery and PGI, u receive GR that goes to consumption stock dierectly)
9. Vendor message comes to u as goods supplied that u make settings PO item views
10. basing on that you send the F2 to ur customer in VF01
10. vendor sends invoice to you.
hope this will hilp u
regards,
sk

Third Party Business Process Within Purchasing /IM(Without SD)

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