Third-Party Order Fulfillment Process Scenario

Hello,
I would like to know if any of you have come across a use case where the Third-Party Order Fulfillment is Not based on the Supplier/Manufacturer shipping out the material directly But the Buyer (and in some cases even end User/customer) arranges this themselves. This is very common in International Trade where the Buyer/Business arranges the shipment themselves by using the services of a Freight Forwarder who Ships the material to the end user/customer after the Supplier/Manufacturer has made the Material available. In such cases the actual Shipment could take days or weeks from when Material is made ready by the Suppliers.
Currently the Third-Party Order Fulfillment Process assumes only one scenario and that is the Supplier will ship the material and inform their Buyer of Delivery. But in International Trade this is not the case and the Incoterms in the Purchase Order can be different to the Incoterms in the Sales order example in the PO the incoterms could be Ex-Works and in the SO CIF.
This leads to requirement of ASN and separate Inbound and Outbound Delivery and their separate Release in this Process as well.
These are not currently supported in the Third-Party Order Fulfillment process thus the Third-Party Order Fulfillment process in ByD has a very limited use in its current form.
If there are other users who have come across this as well then it would be nice to have your comments and possible workaround.
Best regards
Nick

There is no standard SAP solution for this requirement.
You can trigger output from inbound delivery document to generate EDI output and send delivery information to customer.
You will require to define custom output type , partner profile and link with custom fucntion module.
FM should have logic to pick information from 3rd party sales order and inbound ASN and generate IDOC
Hope this solution will work for your requirement

Similar Messages

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

Account posting keys involves for process of third party order

hi
pls tell me the process of third party order and whos account stock will be debited and tell me the account posting keys involves in this process and how it operates
regards
Ram
Edited by: Ian Wong on Aug 13, 2008 7:06 PM

THIRD PARTY SCENARIO
In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.
Process Flow
The processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally, can be ordered only from third-party vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, if you manufacture your own finished products, you may also want, from time to time, to be able to order the same type of product from other vendors.
Processing Third-Party Orders in Sales
Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.
Automatic third-party order processing
If a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.
Manual third-party order processing
In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.
If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.
If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.
You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.
Processing Third-Party Orders in Purchasing
When you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.
Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.
All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order
You process third-party items by creating a normal sales order. In overview for the order, you can then overwrite the default item category (TAN in the standard system) with the special item category for third-party items: TAS
Billing Third-Party Orders
If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If, however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F.
In the first case, the third-party order is considered to be completely billed only when the invoiced quantity equals the order quantity of the sales order item. In the second case, each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the next vendor invoice is received.
If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.
You can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in Customizing for copying control for billing at item level.
FOR YOUR PROCESS Individual Purchase Orders WELL GIVE THE RIGHT SOLUTION
Individual purchase orders are used when your customer orders goods from you that are not in stock and must be ordered from one or more external vendors.
Process Flow
During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the vendor ships the goods directly to you (unlike third party order processing, where the vendor ships directly to your customer). You then ship the goods to your customer. While the goods are part of your inventory, you manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be used for other purposes.
Goods receipt will be posted when ever the vendor ships the goods to our customer.
We will do this transaction in SAP using MIGO.
Invoice receipt is done when the Vendor sends us the invoice.. ( I.e Billing ).
It can be done using MIRO.
THe above two steps are standard and manual. There are many other ways that the actual process can happen. If the client follows EDI standards then the Goods receipt and Invoice receipt can be done through IDOCs automatically.
Process Flow for 3rd Party Sales
Customize the third party sales in summary:
Prerequisites for 3rd party sales,
Purchasing org,
purchasing group,
assign the Purchase org to company code
assign Purchase org to plant,
should not maintain the stock in material, it should be trading goods,
1. Create Vendor XK01
2. Create Material Material Type as "Trading Goods". Item category group as "BANS".
3. Assign Item Category TAS to Order type that you are going to use.
4. A sale order is created and when saved a PR is generated at the background
5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO
7. Goods receipt MIGO
8. Goods issue
9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales.
10. Billing *--
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
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 following a third party process for a material then you have to create the material using item category group BANS.
The procurement 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 procurement ( 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 configure the item category determination
Order type + item cat Group + Usage + High 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 relevant for billing indicator as F
step 4)
The schedule line category 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 requisition order immediately after the creation of the sales order and the PO to vendor is created against this purchase requisition.
Award if Helpful,
Regards
Priyanka.P

Re : Third-Party Order Processing for Subcontracting ( Enhancement Pack 5)

Hi,
In Third-Party Order Processing for subcontracting - Purchase orders for products that are finished by a subcontractor and sent straight to the end customer. PR created in Sales system are processed further in this scenario where you direct your SC Vendor to send the material to your customer.
Although its a standard third party scenario with sub contracting job involved in it.
There is not much information we have in SAP help. This is ECC6 Enhancement pack 5 feature.
If any one has worked on this, I need a process flow to understand this process.
Response is apprecited,
Regards,
Dipak
Edited by: Dipak Kumar on Apr 13, 2011 6:43 AM
Any idea is appreciated?

Hi,
Here you can treat this two procedures are diffrent
For Contractor
Create P.O >> send semifinish goods to vendor
For sales Point
Sales order >> PR >> PO >> Vendor invoice reciept >> Customer invoice Issue wrt order.

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

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 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

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.

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 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

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 Order Processing in CRM

Hi,
I need to create an item category in CRM which enables me to activate third-party order processing in ECC. So the process should be:
- Create sales order in CRM, choose item category "TAS"
- Save sales order
- Order triggers purchase req. in ECC (or sales order with item cat. TAS)
I read sap.help. where it says we need to use SCM etc. for this process. Actually we only have ECC connected. Is it still possible like that?
Rgs
Anke

Hi Anke,
1.Create a ztrans type and item category by copying TA and TAS in CRM.Maintain the same document type and item category in ECC.
2.select the "Create PO Automatic" option in the ECC item category definition.
3.Assing the Purchase order document type to Schedulines and assign schedule line to Item category.
Hope it helps....
Regards,
S Reddy

Third-Party Order Fulfillment Process Scenario

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