Third Party Order Delivery Costs(COGS in Purchasing)

Hello MM/SD Gurus,
We have a Scenario where in its a 3rd Party Order direct shipment Process where the Shipping is done by a Logistics Vendor!
So->PR>PO>Inbound Del->GR->IR>Goods Issue-->Customer Invoice.
Now the Issue we have is Delivery Costs(Freight,Insurance,Duty etc) raised by Logistics vendor are taken as estimated costs during the PO creation with appropriate Condition Types but when at the end of the Month when Actual bill is sent the Prices are to be settled and paid back!!
2)Assuming vendor invoice of $100 and Freight invoice of $10. The accounting entries aare as follows:
Vendor 100-
GIT(Goods in Transit) 100
Fright Forwarder 10-
GIT 10
Since the Stock is Non Valuated here how can Account postings from PO/GR is shown for COGS in SAP.
Understood that COGS is hit when Goods Issue(GI) is done but our need is to account COGS in Purchasing.
Can anybody throw some idea of how to Capture the COGS in PO and post then individually with different G/L accts for Freight,Insurance etc.
Full points guaranteed heheheh! Pls help me with your expert suggestions.
Regards,
Hari'
Singapore

Hi Suraj,
Thankx for your reply and sorry for my delayed reply.
Well your answer is too immature for me to apply since I have already done all those and surpassed those things.
Well to make my question simple I need to account Delivery Costs(Freight,Insurance etc) during GR.Although I have setup all the COnd types in PO Pricing.Now I need to know since GR is Statistical and Goods are in Transit can I account the Delivery Costs into seperate G/L acounts??
It would be great if any of the Forum ppl have already setup capturing of the Delivery Costs in PURCHASING and accounting them into Sepate a/c's. I feel this is Common Scenario in most of the Mfg Org. So knowledge transfer is higly appreciated!!
Rgds,
Hari

Similar Messages

Third Party Order Delivery Costs ( COGS for Purchasing)

Hello Experts
We have a Scenario where in its a 3rd Party Order direct shipment Process where the Shipping is done by a Logistics Vendor!
So->PR>PO>Inbound Del->GR->IR>Goods Issue-->Customer Invoice.
Now the Issue we have is Delivery Costs(Freight,Insurance,Duty etc) raised by Logistics vendor are taken as estimated costs during the PO creation with appropriate Condition Types but when at the end of the Month when Actual bill is sent the Prices are to be settled and paid back!!
2)Assuming vendor invoice of $100 and Freight invoice of $10. The accounting entries aare as follows:
Vendor 100-
GIT(Goods in Transit) 100
Fright Forwarder 10-
GIT 10
Since the Stock is Non Valuated here how can Account postings from PO/GR is shown for COGS in SAP.
Understood that COGS is hit when Goods Issue(GI) is done but our need is to account COGS in Purchasing.
Can anybody throw some idea of how to Capture the COGS in PO and post then individually with different G/L accts for Freight,Insurance etc.
Full points guaranteed heheheh! Pls help me with your expert suggestions.
Regards,
Hari'
Singapore

Hi Suraj,
Thankx for your reply and sorry for my delayed reply.
Well your answer is too immature for me to apply since I have already done all those and surpassed those things.
Well to make my question simple I need to account Delivery Costs(Freight,Insurance etc) during GR.Although I have setup all the COnd types in PO Pricing.Now I need to know since GR is Statistical and Goods are in Transit can I account the Delivery Costs into seperate G/L acounts??
It would be great if any of the Forum ppl have already setup capturing of the Delivery Costs in PURCHASING and accounting them into Sepate a/c's. I feel this is Common Scenario in most of the Mfg Org. So knowledge transfer is higly appreciated!!
Rgds,
Hari

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

Cost center not populated in Purchase requisition for a third party order

Hello,
We are currently testing the Third party order flow which includes :
1. Creation of a sales order with item category TAS
2. A purchasing contract is maintained for a sales order item at the schedule line level.
(In the purchasing contract, account assignment is already maintained for each contract item, meaning a G/L Account and a cost center).
3. Automatic creation of the Purchase requisition when the sales order is saved.
>> The account assignment is not copied from the contract to the Purchase requisition. Do you know why and how I can do that ?
Thanks
Best regards
Benjamin

Hi Palani,
if i am not wrong This WBS in location or additional tabs are used for settlement purpose. For PR creation by maintenance Orders can have Order number as account assignment.
Please reply
Thanks
Sunil

Third-Party Order - Cost from PO incl. Freight into Sales Invoice

Hello SD gurus,
Had a question about drop shipments(Third Party Orders). At our company, the third-party order related PO sometimes has Freight/Customs conditions, but they do not come on to the VPRS(cost) condition on the corresponding Sales Invoice. What should I do to make them add up on VPRS?
See sample PO conditions and history tabs below
You can see the correct amount(including freight) shows up as cost of goods sold(in the accounting doc for its GR document) below
But the VPRS line on the sales invoice only shows the GR amount, does not include freight/customs charges as seen below
Is there any way I can get VPRS to include the Freight/Customs amounts as well. Please help me out....
My third-party order copy control VTFA configuration for OR =>F2 for ItemCategory TAS, the billing quantity is currently set to F.
Document Flow for our drop-ship orders is as follows: Creation of sales order triggers creation of a purchase requisition which in-turn gets converted into a PO. Once the GR happens on this Vendor PO the Goods Issue and Sales Invoice is triggered immediately. The Vendor IR comes last.
Thanks and regards,
Wayfarer

Hello
As per the standard Third party process, cost in the billing document will be picked from Invoice receipt of the vendor (MIRO).
Basically here the cost determination happens from below three sources.
1. MIRO (invoice receipt of Vendor)
2.Goods receipts (MIGO )
3.Purchase order
Highest priority is given to the number 1. MIRO.
In your both the cases, kindly check MIRO price & quantitiy.
thank you
Anirudh

How to configure purchase requesition in third party order

dear expert
can you explain how to configure purchase requesition in third party order.
vicky

Hi
Kindly check the below
Maintain the purchase requisition doc type in the third party order schedule line category in the t code VOV6 as below
Sched.line cat.        TP    Third party schedule
Delivery block
Movement Type                                        Item rel.f.dlv.
Movement type 1-step
Order type            NB    Purch Req                P.req.del.sched
Item category         5     Third-party
Acct.assig.cat.       X     All aux.acct.assgts.
Incompl.proced.       31    Sched.Line w/PurReq.
Req./Assembly
Availability
Prod.allocation
Regards
Damu

Delivery address of PO in third-party order processing

Dear sir,
The delivery address in PR&PO of third-party order processing will auto take the 'Ship-to-party' from the SO, but in my company due to special process we want the delivery address default in 'Sold-to-party' of SO.
Can someone tell me how to cinfigure that or enhancement exit should be used?
thanks!
Joseph

There's a default vendor in source lists.

Delivery in third party order

Do we create delivery document and post PGI in third party order?
If yes, why? If no, why?
Thr is lot of confusion with this matter. Only n only the people worked practically on TPO are requested to answer. I have searched a
lot on this which cant clear my confusion, so plz dont give me any link or material... (sorry if I sound arrogant)
Thx vry much.
_prashant

Hi Prashant,
In case of third party order the goods will be deliverd by your vendor to your customer directly. So you 'won't see' (physically) the goods delivered to your customer.
That's why I think there's no need for delivery notes from your side. I think it is the responsibility of your vendor who supplies the goods for your customer.
order (by your customer) > SO in SAP (you) > PR (automatically) > PO (from PR; to your vendor)
You can do GR when you get informartion (feedback) that that goods were deliverd (the goods arrived) to your customer but it is not necessary (you have other options in this method). If you do statistical GR the parts will be booked via 101 but you won't have stock , the system considers this that your customer received the goods at the time of GR (a little bit similar to PO with account assigt. cat. 'C' - the goods arrive through MVT 101 but they are consumed at the very moment [w/o movement type]).
I hope I'm not mistaken...
BR
Csaba

Third-Party Order Processing delivery date

Hello everybody
I use Third-Party Order Processing for modeling the delivery by the vendor to the customer.
The PR is automatically generated from the sales order. In the sales order, in the schedule lines tab, the system creates two lines :
- 1 line with the date desirated by the customer with a quantity of 0 confirmed
- 1 line with the date calculated with the delivery time (3 weeks) of the vendor master, with the total quantity
When I saved the sale order, the PR generated has only one schedule line with the total quantity with the delivery date desired by the customer. Normally I should have the delivery date of the vendor (today + 3 weeks).
Is it normal ? Do I miss some customizing?
Thanks for your replies,
NP

Its normal.
Delivery days will be honored based on PO delivery details.
3 weeks buffer which you might be getting b'coz of
- charateristics in Planned Deliv. Time or Baseline Lead Time maintained in Materials MRP2 tab .
- avalibility check control maintained
Regards
JP

No delivery costs exist for purchase order

Dear Friends,
While doing MIRO, i am getting an error message as mentioned below----
"No delivery costs exist for purchase order xxxxxxxxx"
Message no. M8014.
Kindly guide me in resolving the error.
Thanks & Regards,

hi
>"No delivery costs exist for purchase order xxxxxxxxx"
itself says that there is no delivery cost,
firstly check ur PO ,Did u entere the delivery cost conditions like for freight or octoi in the PO
or if u have entered the condition then check if it is not already invoiced
if u dont have delivery cost in po and wanna do IV for material then in miro
change the option of delivery cost to goods/service
(at right side of the po no field)
regards
kunal

Route is not considering in delivery scheduling for Third party order proce

Hi All
Advance thanks for your inputs
We need to consider the route in the delivery scheduling for third party order processing..
Example
i have standard order (document type OR) when i have item cat TAN its considering the route for ariving the material availability date, if it has TAS(third party) then its not considering the route......
But we want to consider the route in deliver scheduling in case of third party order...
kindlly pls advice..
regards
raja

Hi Viven.,
Routes they come under normal order as we deliver the goods,but here in TAS,third party sale we are not delivering the goods,Just there is logical moment i.e MIGO,So i dont think we do routes for TAS
Thanks & Regards
Narayana

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 and Shipment Cost managed by Trader.

Hi gurus,
I have set up the scenario third party with Delivery note and it works fine.
That means i can execute all the process till the billing. Customer, trader and supplier are set.
The problem here is that in this scenario, the trader wants to be responsible for the shipment costs. Before implementing the scenario i thought it would be possible to, from the purchase order generate an outbound delivery and create a shipment document for applying costs to it. The problem is for position TAS it is not possible to do none of that.
I can't find a solution for this... has anyone faced a problem like this? Or is capable of seeing a possible solution?
best regards.
Diogo

Hi Tuffy,
In Third party dropship scenario, customer give an order from your e-trade site or online sales site. after receiving the order, your contracted company with you will deliver the order, not you. you are adding your profit to the list pricing. Process is going below:
customer >> shopping from you >> payment to you >> getting the amount of profit after sales >>> sending of order and delivery information about customer to contracted company >> contracted company will deliver th order to the customer.
But in other type of third part sales, we sould create purchase order additionally.
I hope these will clarfy your confussion.
Regards,

Procurement cycle in third party order and stock transport order.

please provide me in steps the procurement cycle in third party order and stock transport order.

Hi,
STO Process: -
1.Create a vendor for the company code of receiving plant, using account group :0007 using T-Code XK01.
2. Assign this vendor to Delivering plant
Go to XK02 >Purchasing view>Extras>Add. Purchasing data>Plant
3. Create internal customer with the sales area of the vendor. Go To XD01
4. In Pricing procedure determination relevant to STO, assign document Pricing Procedure and customer pricing procedure appropriate for STO to get the pricing in the invoice.
5. Maintain condition records for the relevant pricing condition.
6. Some more setting for STO: Go to MM> Purchasing > Purchase Order > Set up STO > define shipping data for plants > Go to Receiving plant >assign customer here & Supplying SA (for billing) to Receiving plant here
7. Go to MM > Purchasing > Purchase Order > Set up STO > define shipping data for plants > Go to Supplying plant and assign the sales area of receiving plant.
8. Go to MM > Purchasing > Purchase Order > Set up STO > assign delivery Type & Checking rule
Assign the delivery type to document type. In this case, Delivery type NLCC is assigned to Document type NB
9. Go to MM> Purchasing > Purchase Order > Set up STO > Assign document Type, One step Procedure, Under delivery tolerance
Assign the document type NB to supplying plant and receiving plant
10. After all settings , Create the STO using T-Code:ME21N and maintain pricing conditions of freight and Save.
11. Create Delivery :VL10G
Click on the Background Button after selecting line item
A message is flashed : See log for information> next Click on Log for delivery creation Button >click on line item>click on document button to get Delivery document No
12. Picking, PGI:VL02N
13. Billing:VF01
Save the document and its done
14. J1IIN - Outgoing Excise Invoice
15. MIGO - Goods Receipt against outbound Delivery
16. J1IEX - Capture & Post Excise Invoice
Pricing configuration for STO: -
In SPRO > MM > Purchasing > Conditions > Define Price Determination Process > Define Schema Determination > Determine Schema for Stock Transport Orders > Here assign Calculation Schema "RM2000" i.e. Stock Transfer Document to Schema Grp Pur. Org, STO Type (For e.g. UB) and Supplying Plant.
Calculation Schema "RM2000" has condition type P101 which will pick up the MAP of supplying plant automatically during creation of STO in ME21N ("Conditions" Tab).
You can create new freight / delivery cost conditions in M/06 and assign in pricing procedure "RM2000" in M/08 and also assign the Accrual Key to this and do the Account Determination for this Accrual Key in OBYC
At the time of PGI, following accounting entry will get generated;
Stock A/c - Dr - 110 INR (Receiving Plant)
Stock A/c - Cr - 100 INR (Supplying Plant)
Freight Clearing A/c - Cr - 10 INR (Supplying Plant)
Third Party Process Flow: -
1) MM01 - General Item category Group should be BANS in basic view of material master.
2) VA01 - Creation of sales order with VA01 transaction in SD module
3) When sales order is created system automatically creates a PR for the material with item category as "S"--> Third Party Item
4) ME21N - Directly PO with item category as "S" and delivery address as customer address
5) MIGO - Statistical GR by MM ( When it is made goods are received and delivered)
6) MIRO - Invoice by MM for vendor
7) VF01 - Billing by SD on Customers

Third Party Order Processing

Dear All,
1.Can anyone explain me the term 'Statistical GR' in Third Party Scenario & also why & how we do it (also the Config settings required for the same).
2. In third Party Scenario we have order acknowledgement & confirmations so how we do this ??
Do we use the confirmations tab in the third party PO?? ( If yes wat we have to select - inbound delivery or rough GR)??
Appreciate all the helpful answers.
Regards,

hai
The account assignment category X in the Customizing system of Purchasing determines whether a goods receipt can be posted for a third-party item. Here you define whether a goods receipt is possible, not allowed or compulsory.
If a goods receipt is possible, the GR indicator in the purchase order item is changeable. When you enter the purchase order, you decide if a goods receipt is to be posted or not.
You can only enter a goods receipt for a third-party order if the goods receipt indicator is set in the order item
we are specifying the account assignment category in the third party po as well as the itemcategory
so the effect of the gr will be to just like consumption
we will do the gre just like normal gr to post it to the gr/ir account to verify and to settle the invoice to the vendor
you can use confirmation key as usual to have the confirmations and acknowledgements

Third Party Order Delivery Costs(COGS in Purchasing)

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