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

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

  • 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

  • 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 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 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

  • Accounting Entries hit in Third party Sales Process

    Hi,
    Can anybody tell which accounting entries are hit when we create the following entries in third party sales process
    1.When Sales Order is created.
    2.When PR is Created
    3.When ME21N is done
    4.MIGO
    5.MIRO
    please provide your valuable suggestion..
    Thanks...

    Hi,
    1. When Sales Order is created.
    No FI Entry
    2. When PR is Created
    No FI Entry
    3. When ME21N is done
    No FI Entry
    4. MIGO
    (GBB-VAY) COGS - 3rd Party A/c - Dr
    (WRX) GR/IR Clearing A/c - Cr
    5. MIRO
    Vendor Account - Cr
    GR/IR Clearing A/c - Dr
    6. VF01
    Customer Account - Dr
    Sales Revenue A/c - Cr

  • Billing in Third party order process

    Hi,
    In the last stage of TPO Process we need to do billing.kINDLY inform what is the reference document when we want to do billing for a third party order process in VF01, Is it sales order?

    Hi,
    In the Third Party processing,
    You refer the Sales order for creating the Billing document to the end customer
    In the Item category level of the Third party, one field which control the Billing relevance
    If you check the BILLING RELEVANCE for TAS item category, it is F which says, the billing will be based on the MIRO ( vendor invoice)
    In general for Third Party, Vendor will directly send material/Goods to the customer and that notification will be sent to the company.
    If say, out of 10 PO items, Vendor has send only 5 quantity to the customer and we have to bill the customer for only 5 quantities so once the billing is generated it will refer to the invoice quantity of the MIRO
    Hope it is clear,
    regards,
    santosh

  • Costs in Third-Party Business Transaction

    In Third Party order processing the value of VPRS is taken from the vendor billing document.
    In billing document copying control at item level for position type TAS we have indicator F in the Billing Quantity (FKMGK)
    How to setup Customizing so the system determines the cost for third-party order processing from the value of the vendor invoice plus proportional statistic conditions (for example, cash discounts or statistical freight)  Now the system only includes the goods value in condition VPRS?

    Hi,
    In third party scenario what ever be vendor invoice value is become cost when creating billing with reference to order
    Also billing type F is proper this is for what ever quantity invoiced by vendor same can be copied in customer invoice.
    Process :
    VA01 - Sales order (item category TAS)  >> ME52N - P.R (after SO save) >> ME21N -  P.O >> Vendor ship goods to our customer >> MIRO - Vendor Invoice reciept >> VF01- Customer invoice(wrt sales order)
    Kapil

  • Third party order process- tolerances

    Hi
    our client is facing a problem.
    Normally a SO will be issued and then the PO is created with ref. to
    SO (and with same quantity). GR and IR-L will be booked, then SO will appear
    in billing due list  and customer
    invoice will be created.
    But now If PO quantity and GR quantity are not identical, SO is not appearing in billing due
    list. do we set up any tolerances for these in custozmizing.
    what would be the probable reason for this
    can any one please throw some light on this.
    Regards
    GP

    Hi GP,
    Check the billing relevant of Item category used in Sales order item  . This should tell you what is happeneing in your scenario.
    If PO qty and GR qty missmatch occurs , MM config has to be checked to see if any tolerance has been set.
    If SO is not appearing for billing , then you need to check is SO dependent on your GR or IV for billing.
    Assuming it as TAS item category and BANS item category group and third party ordering process.
    Billing Relevance:
    F     Order-related billing doc. - status according to invoice qty  ( Bill after IV done with IV qty)
    G     Order-related billing of the delivery quantity       ( Bill after GR with GR Qty)      
    Thanks,
    Sudhi

  • 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

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