Third Party Process (PR through Sales Order)

Hi all,
I have to configure the third party scenario (PR through Sales order) for one of my client.
So can anybody tell me what are all pre-requisite / settings from the configuration point of view as well as from the transaction point of view.
Thanks
Shubham

Hi,
here is some stuff regarding third party purchasing,
may be it will use ful,
u2022     The item category group (BANS) in the sales:sales org.data screen of the material master controls whether or not the material will always be a third party material. In this case, the item category in the sales order will be defaulted to u201CTAS.u201D   If the material is also procured internally, then the item category group can be set to u201CNORM,u201D and the material can still be used for third-party processing if desired.
u2022     The item category in the sales order (TAS) informs the system that      procurement data must be maintained for the order. In addition, this item category results in a purchase requisition being automatically created with its item   category defaulted (S).
u2022     The purchase requisition is created as a result of a sales order. For each schedule line (quantities for sales orders broken up by dates of delivery), a purchase requisition item is created, provided that the item category on the
sales order is u201CTASu201D for third-party. The purchase requisitions created can
be viewed and even edited from the schedule line screen (Edit-
Procurement Details).
u2022     Changes in quantities, dates and account assignments in the purchase order result in the automatic changing of the sales order.
u2022     A desired vendor (informational field) can be specified in the sales order in the procurement data for the order. In addition, a fixed vendor may be assigned in this data if known at the time of the sales order. This then becomes the supplier for the third-party items. If the vendor is not specified in the sales order, the purchase requisition goes through the normal source determination.
u2022     The account assignment in the purchase requisition can be either the sales order (C), or aux. account assignments (X).
u2022     Once created, the third-party purchase requisition follows normal
purchasing procedures.
u2022     Customer delivery information is copied onto the purchase requisition from the sales procurement data.
u2022     If you create delivery schedules or change quantities during the purchasing process, these automatically get copied back to the schedule lines on the
sales order.
The goods receipt indicator can be found in the purchase requisition which can be edited from the sales order (Click on Item line- Hit Schedule Lines button -Hit Purchase Requisition Button). This indicator determines whether or not the customeru2019s goods receipts are monitored. When the indicator is off, invoice verification is done against the purchase order quantity, and the delivery of goods to the customer is not input into the system
chenna
Edited by: lakshmi reddy on Oct 6, 2010 2:23 PM

Similar Messages

Third party process with Valuated sales order stock

Hi All,
We have third party sales order process with valuated sales order stock. The problem is that in the theird party PR which is triggered directly from the sales order it determines a stock account which is assigned to the BSX key in OBYC.
But since this is third party processing as per my understanding a consumption account assigned to key GBB-VAX (since account assignmnt category is X) should get determined, so that when the GR is done against the PO a consumption posting is done in the background.
I am not able to understand if the system is determining the stock account due to the fact that it is valuated sales order stock and if so, what should happen after GR. Should we have a stock created for the material which is physically directly delivered to the customer?
Regards,
V S

Hi,
Check GBB-VKA which is defined in OME9 for your ''E'' Account Assignment Category that SAP will debit upon GR posting
Also check "X" GBB-VAX and the G/L account assignment in OBYC
The posting on GR should be debit KBS -Credit GR-IR
Thanks
Diwakar

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

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

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

Third Party Process ASN

We have configured a third party process for specific sales orders. We receive an inbound ASN with shipment information and then we create the outbound invoice, directly from the sales order, after we post the inbound invoice. Is it possible, and how, to create an outbound ASN, from our system to the end consumer, based on the information in the inbound ASN? We would prefer not to create an outbound delivery document in our system and would like to generate the outbound ASN off the outbound invoice or the original sales order.
Thanks for the help.
Chris

We have configured a third party process for specific sales orders. We receive an inbound ASN with shipment information and then we create the outbound invoice, directly from the sales order, after we post the inbound invoice. Is it possible, and how, to create an outbound ASN, from our system to the end consumer, based on the information in the inbound ASN? We would prefer not to create an outbound delivery document in our system and would like to generate the outbound ASN off the outbound invoice or the original sales order.
Thanks for the help.
Chris

For third party process how PO PBXX copy from SO PR00?

Hi Expert,
Any idea how how PO PBXX copy from Sales Order PR00 for 3rd party process?
Cheers.

Hi,
PR00 is the sale price for the customer.PBXX is the purchase price from a vendor to direcct supply to the customer from that vendor in the third party.while creating the sale order, based upon the puchase side settings like info record etc these prices will come.
Regards,

Ship to party and vendor relation in third party process

Hello Experts,
I need your precious suggestions on my business requirement.
When we create the third party sales order system creates the Purchase Requisition and further PO is created through purchasing department.
Suppose in my third party sales order I have two items X & Y, and both need to deliver at two different ship to party XXX & YYY respectively. in order system determine plant 1000 for both materials based on plant determination (CMIR >> CMR >> MMR) and system generates PR.
I know while converting the PR to PO system check Source list (ME01) to determine the vendor. my requirement is I want to determine Vendor based on ship to party in sales order. suppose ship to party locations for XXX and YYY are Bangalore and Pune respectively and in both place we have different vendor. Both vendor manufacture product X & Y. so I want system should pick the vendor according to ship to party.
Is there any relation between ship to party and vendor which will work in third party processing ?
Kindly explain how I can achieve this requirement.
Thanks,

I doubt this can't be achieved by SAP standard functionality. You may need to use user exit. Check Third party to purchase req user exit or purchase req user exit to fulfill the requirement.
Regards,

Intercompany invoice not getting created in third party processing

Dear Gurus !
I am facing a problem in creating the intercompany invoice in case of third party order processing.
In our organisation , for any type of sale two billing documents are creared :
1) Commercial Invoice under the co. code for which sales org. is maintained at the sales order bookin level .
2) Intercompany Invoice under the co. code in which plant is maintained which is used at the sales order level as delivering plant.
So, as per the configuration req. for third party processing , i have created Sales order ( with automatic Purchase requistion generated ) , Purchase order creation with reference to the Purchase requisition , goods reciept ( MIGO ) and invoice reciept ( MIRO ) , then billing doc. or commercial invoice ( VF01 ) with the generation of accounting document and finally the intercompany invoice ( VF01 ) .
But i am facing the problem in final stage , that is , intercompany invoice creation .
Error Message : No open billing quantity has been determined .
I have checked the copy control for sales order to intercompany invoice and still not able to resolve it .
Please reply which setting needs to be done for this .
Awaiting your response , that what copy control settings is required .
Thanks .....

Hi Buddi / Mahesh / Kiran ,
It ' s good to see all of your opinion . But my problem has not been resolved .
I am implementing third party processing in my organisation , where the customer is an export customer ( outside India ) . Hence , this is a merchant export .
All the configurations / Customisations have been done for this process .
The process is running fine till commercial invoice , but the problem is in intercompany billing doc. creation.
I am again repeating - Error message : No open billing quantity has been determined.
Explanation of the process :
1) The order has been booked with item category TAS alongwith the item cat. group as BANS for the material used in the order .
2) The sales area is 1020 / 30 / 35 . Here , 1020 is sales org . under company code 0079 , 30 is export's distribution channel and 35 is the division for components .
3) The delivering plant used in the sales order is 1009 which is under co. code 0077. The price / condition record maintained for this material is in USD / EUR as it is a case of merchant export .
4) The purchase requisition is generated automatically when the order is saved . It can be seen at VA02 - > Item details - > Schedule Lines .
5) With the help of this PR no. , i have created a purchase order for vendor which is maintained under co. code 0077 asking for material in plant 1009 which we need to export / supply to the customer.
6) The value of material per piece in the P.O. is coming from the material master record -> Accounting 1 view - > Moving av. Price .
7) Now, the Purchase order is saved . With the help of this P.O. no. , goods reciept ( MIGO )is done .
8) After MIGO , Invoice reciept or MIRO is done under company code 0077.
9) After MIRO , customer ' s invoice is created through VF01 .
Remember : This is an order relevant billing , no delivery or PGI will happen here because the material is not coming into the plant 1009 .
10)The billing document ( order - related billing doc.) is created and the accounting document is also created under co. code 0079 in USD .
Till this stage , everything is running successfully as per business requirement , but i am facing the problem in the final stage , that is creation of intercompany invoice under co. code 0077 which is in INR .
In all other sales document types used in our industry , the process is same , that is : a) Sales order creation b) Delivery and PGI c) Billing doc. creation with accounting doc. under co. code 0079 and finally d) Intercompany invoice with accounting doc. under co. code 0077 and excise invoice creation with reference to intercompany invoice.
In the above, problem is not there becuase orde is delivery relevant , hence copy control is maintained for interco. billing to delivery type.
But in the new process , that is , third party processing , sales order relevant billing is done . so i suppose there will be a copy control for intercompany billing and sales doc. type , but i am not able to resolve it .
Hence , please understand the process before suggesting .
Thanks and awaits reply........

Re Third Party Processing Interview Questions

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

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

Free of charge third party process.

Dear Gurus,
I want to create a sales order with a third party material with zero price, create a PO and invoice the PO with zero value.
Could you please tell me how this can be achieved and what are the necessary settings in config to be changed?
Thank You
Kumar

Hi Kumar,
the third party process is as follows:
1.Customer will order the material from the Company X.
2.Company X will not have stock of the material.
3.Company will raise a PO for the material to the Vendor & asks the Vendor to deliver the material to the customer.
4.Vendor will directly deliver the material to the customer & will send the invoice to the Company X.
5. Company X will then raise a invoice to the Customer wrt on the Sales order.
Create a Sales order with item category TAS, Schedule line category CS(standard).Once the SO is saved, go to the change mode of the SO, go to Schedule lines tab, & note down the PR number.
With reference to the PR, create the PO & then MIGO and MIRO.
Then create the invoice wrt the SO.
Let me know if you hav any problems.
Regards,
MP

Credit Check with Third Party Process

Hi Gurz,
I know about third party process but my problem is with credit check of the customers.
If customer has not got enough credit limit to process the order in normal senario credit controller has to manually release the order as system blocks it. In third party process system will give you warning message when saving sales order about customer credit limit but allows you to save sales order. Once saving sales order it authomatically creates Purchase Requisition. From PR purchasing creates P.O. with out knowing about customer credit limit issue. and so on. In other words goods supplied to customer even though credit limit has exceeded. This user don't know untill raising the invoice to the customer which is too late.
Can we stop creating Purchase requisition or block purchase requistion for credit check ? or there are better way of handling the process for credit check?
Thanks in advance

Hi,
Try to implement OSS note -738171 - Delivery block does not influence purchase requisition.
Following is the details of the note;
Summary
Symptom
The delivery block in a sales order does not prevent the generattion of the purchase requisition in a third-party or individual purchase order item. Regardless of the Customizing settings in the delivery block, the system confirms the TAB or TAS item and generates the purchase requisition.
More Terms
Order, purchase requisition, PReq, TAB, individual purchase order, individual purchase order item, TAS, third-party, third-party item, SD order, delivery block, VBAK-LIFSK, VBEP-LIFSP
Cause and Prerequisites
Solution
Create a user-specific user requirement (for example, 902: BEDINGUNG_PRUEFEN_902 in Include LV07A902) as a copy of standard user requirement 102 and assign it to requirement 'Preq' by using Transaction OVB5.
In the source code of the user-requirement, program a check for the delivery block which, if necessary, triggers an ERROR_EXCEPTION which prevents the generation of the purchase requisition.
You can use the existing check for the credit block as a template.
Regards,

Third Party Process and Inventory

We are using the SAP function "Third-Party Processing". We are using the function in it's standard (SAP R/3 4.7).
The auditor now has the following issue: Shipping the goods starts after paying the goods. Out of this, while shipping the goods, we are the owner of them. In this circumstance the ship is our warehouse.
SAP does not allow an Inventory Management within Third-Party Processing:
"Since a third-party order involves a movement from the vendor direct to the customer, Inventory Management is not in any way affected. If you wish to document the movement in the system, however, you can create a goods receipt for the third-party order."
With the SAP functions in this scenario it is correct that the warehouse stock is not being impacted. This is a conflict with the opinion of the auditor.
Let me explain in detail what is wrong out of the view of our auditor:
For example we initiated the order of a customer in June and we have paid the goods in June. The shipment starts in June and the goods will arive in July. Due to the fact, that we are the owner of the goods on the ship, we have to increase the stock. This is the opinion of our auditor.
Does any body know, how to solve the issue? How do you manage Third Party Processing & Inventory?

Some auditors just dont understand the SAP process. Instead of talking to weak users, they should talk to SAP directly.
What about shipments from standard sales orders that are shipped end of June and do arrive at the customer in July?
When do you bill your customer? when the goods arrives there, or earlier? Depending on the Incoterms you may still be the owner until the truck is unloaded.
If you change your process and post goods receipt to your warehouse, then you show inventory where no physical inventory is, you posted a goods receipt without a physical receipt. I am sure the next auditor will not allow such therotical process.
Get together, IT consultants of FI and MM and SD, strong business people for the same modules and the auditor, and discuss and find an optimal solution.And let the auidor sign the decision paper!!! Very important, I recently had to convice German auditors because they had different opinion than the Australian and US auditors of the same auditing company (and the issue had nothing to do with local legal requirements).

Third Party Process - forcing PO creation after error

Hello eveybody,
I am implementing the Third Party Process and everything is going well but I have a question. If I enter say 10 items on a sales order and one material does not have an info record/source list then that item does not get entered on the purchase req. This then blocks the automatic creation of the PO.
If I fix the problem material and re-enter it on the SO, then that item gets ordered but the other 9 are not processed. Is there nany way to force the PO creation for the other 9 items ??
Many thanks in advance.
Brian

Hi Stanton,
When you precess the third party order the purchase requesition will be created to the respective schedule lines so you can get the two different purcahse requesition for the 10 items then you can combine those two purchase requesitions in the purchase order what is the issue.
or you can run another PO for that problem item.
I hope it will not give any problem while creating PO
Thanks,
Murali.

Third party process as inventory value

Dear Experts,
Kindly need help for third party process.
We have third party process which triggered from Sales Order. This Sales Order will automatically created PR. PR will be convert into PO.
The issue is we would like to have goods in Sales Order (or Purchase Order in next process) as inventory value when receiving goods.
Can third party process be treated as inventory value when receiving it?
Thank you in advance.
Best Regards,

In third party process your customer gets the goods directly from your vendor.
You only make a statistical GR ("phantom" GR) in the system, the goods are physically received by your customer and your customer's inventory will increase after your customer's GR and not yours. Knowing this your question doesn't make any sense I think.
If your third party process is not a real third party process and you receive the goods physically and after that you sell it your customer you can use individual PO scenario.
http://help.sap.com/erp2005_ehp_04/helpdata/EN/dd/5601d4545a11d1a7020000e829fd11/frameset.htm
Regards,
Csaba

Third party process - error

Dear all,
In the third party process, have we to create outbound delivery?
I have created PO from PR of a third party sales order. And now, i don't understand to delivery to customer.
Pls tell me solution.
If we have to create outbound delivery from that sales order, i get errors:
Item category TAS is not defined and Item category TAS is not defined, so item 000010 will be disregarded. I also checked in VOV4, VOV6, VOV7.
Thank you,

Hi
In third party scenario the material is delivered to your customer thro out side vendor
You are billing your customer
Vendor is billing you for the material he has delivered to your customer
Here we dont make any delivery
Process Flow for 3rd Party Sales
Customize the third party sales in summary:
1. Create Vendor XK01
2. Create Material u2013 Material Type as "Trading Goods". Item category group as "BANS".
3. Assign Item Category TAS to Order type that you are going to use.
4. A sale order is created and when saved a PR is generated at the background
5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor.
6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO
7. Goods receipt MIGO
8. Goods issue
9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the configuration and,   therefore, there is no delivery process attached in the whole process of Third party sales.
10. Billing
SD - 3rd party sales order Create Sales Order
VA01
      Order Type
      Sales org, distribution channel, div
      Enter
      Sold to
      PO #
      Material
      Quantity
      Enter
      Save
SD - 3rd party sales order View the PR that is created with a third party sales order
VA01
      Order Number
      Go to Item Overview
      Item ->Schedule Item
SD - 3rd party sales order View the PR that is created
ME52N
      Key in the PR number
      Save
SD - 3rd party sales order Assign the PR to the vendor and create PO
ME57
      Key in the PR number
      Toggle the "Assigned Purchase Requisition"
      Execute
      Check the box next to the material
      Assign Automatically button
      Click on "Assignments" button
      Click on "Process assignment"
      The "Process Assignment Create PO" box , enter
      Drag the PR and drop in the shopping basket
      Save
SD - 3rd party sales order Receive Goods
MIGO_GR
      PO Number
      DN Number
      Batch tab , click on classification
      Serial Numbers tab
      Date of Production
      Flag Item OK
      Check, just in case
      Post
      Save
SD - 3rd party sales order Create Invoice
MIRO
      Invoice Date
      Look for the PO , state the vendor and the Material
      Check the box
      Click on "Copy"
      Purchase Order Number (bottom half of the screen)
      Amount
      State the baseline date
      Simulate & Post
      Invoice Number
      *Invoice blocked due to date variance
SD - 3rd party sales order Create a delivery order
VL01N
      In the order screen , go to the menu Sales Document , select "Deliver"
      Go to "picking" tab
      State the qty and save
SD - 3rd party sales order Create a billing document
VF01
      Ensure that the delivery document is correct in the
      Enter
      Go to edit -> Log
      Save
Hope the process is very clear to you now
Regards
Raja
Edited by: ramanathan raja on Sep 18, 2008 3:06 PM

Third party process in MM

Hi friends,
i need all your help in configuring third party process in MM.please guide me by giving step by step process with t-codes.
your advise is considdered more valuable.
Regards,
william

Hi,
Process Flow for Third party process with SD-MM Integration
Customiztion requires is
1) Defining the Purchasing org,Purchasing group,
2) Assign the Purchase org to company code
3) Assign Purchase org to plant,
Material type used should be Trading goods -- HAWA
1. Create Vendor XK01
2. Create Material with Material Type as "Trading Goods" & Item category group as "BANS".
3. Assign Item Category TAS to Sales Order type
4. Sale order is created and in the background a PR is generated
Note down the PR number along with Sale order no
5. With reference to PR a PO is created (ME21N).
PO will be sent to the Vendor with delivery address as your Customer.
6. Vendor delivers the goods to the Customer and raises Invoice to the Plant.
7. Goods receipt MIGO & stock update in the Plant ( Not physically)
8. MIRO for Vendor to clear the Payment
9. Create the outbound delivery for sales order
10. Post Goods issue for delivery
11. Billing for the customer
rgds
gsc

Third Party Process (PR through Sales Order)

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