Third Party Procurement Goods Receipt

For Third party procurement, where goods are ordered from a vendor and drop-shipped to a customer, how does SAP recommend the goods receipt process take place by the customer? (We are using CRM/ECC/SRM)
For example, normal PO creation requires a plant to be specified. However in third party procurement, there is no goods receipt into a plant, as the materials are shipped from the vendor directly to a customer.
Please provide any insight on if or how a goods receipt is performed in third party procurement scenario. I believe SRM enables a new 107 movement, if this is true can someone please elaborate on this process.
Thanks

Hi,
In 3rd party sales, the preq so generated in SD got to have plant at any cost no matter we receive into our plant or not. This is because, we need to be able to pay to vendor subsequently (whether we receive into our system by active GR for the PO or not and MIRO uses PO reference and that becomes the data (in most cases of 3rd party sales process) for SD billing. So, plant must be there. However, processing GR is optional. But, a good solution is:
Customer places order with us so, SO# created. Being 3rd party order, creates 3rd party PReq and I would recommend a shipping notification (or Inbound Delivery) be EDI'ed to our system from vendor's system when he dispatches goods to customer. When customer confirms receipt in his receiving location, based on customer's communication (by phone/email/fax etc) we process GR logically.
Now, billing part whether before or after the vendor invoice processing is suggested in both the ways in best practices in two different scenarios. However, it is recommended to have vendor invoice processed before customer invoice. Hope, this helps..

Similar Messages

VF04 - third party - pseudo goods receipt

Hello,
we do third party invoicing based on pseudo goods receipt.
This is because we sometimes charge the customer in warranty cases even if the purchase is for free.
(if we get the broken part back, we will raise a credit note afterwards)
As soon as we do MIGO, we are able to invoice the GR qty with VF01.
But we want to release the invoices via VF04 which doesn't work unless the IR is posted.
I've checked lots of SAP notes (like 84229) but wasn't able to find a solution.
The billing-relevance for the item category is 'F' and the billing qty. in copy control is 'E'.
(Changing billing relevance to 'B' should be the last option, as order appears in VF04 as soon as created and I'm
not quite sure whether the VPRS valuation problem occures again)
Does someone has an idea?
Thanks
Wolf

Hi,
In the item category VOV7
when F= Order related Billing status according to Invoice qty, hence system allows VF01 only after MIRO is completed. That is the standard behaviour.
I heve never tried this , but please check by changing to "G = Order related Billing status according to Delivery qty"
Hope this helps.
Regards,
Sharan

Third party procurement

In third party procurement scenario, I understand the material is directly sent to customer and the vendor sends only invoice to the purchasing plant.
If this is right, how the

Hi Balaji,
Third party sales process as follows:
1. Create Sales Order : Based on the customeru2019s purchase order we create sales order in the SAP system. Sales order creation can be automated if supplier supports EDI.
While creating the sales order we need to specify the item category . TAS is a standard item category provided by SAP for 3rd Party Sales Order. Ideally we copy and create our own u201CZTASu201D item category.
Now while saving the sales order system automatically creates purchase requisition against the sales order in the background due to TAS/ZTAS item category.
2. Automatically PO will be created: The PR to PO conversion can be happened automatically by maintaining certain Master data.
In this case the account assignment category in the purchase order should be u201CYu201D and item category in the purchase order should be u201CSu201D.These account assignment category and item category will control subsequent flow in the process.
3. Delivering Goods to Customer: Once vendor receives the PO, vendor ships the goods directly to the customer as per the guideline provided on the PO.
4. Goods Receipt (GR):
GR can be done either of following 2 ways.
Fully automated way u2013 Customer can send the ASN to SAP system which can trigger the inbound delivery and GR.
Manual u2013 Customer sends the customer confirmation and based on that GR is carried out manually in the system; physically material will be send to customer by third party.
5. Entering a Vendor Invoice
The vendor sends you an invoice. You enter the invoice receipt in Invoice Verification. The invoice receipt is necessary (Based on the setting made at item category level) before a billing document can be created in SD or we can bill the customer as soon as order is created in the system.
But bill the customer only after the invoice verification is done. This minimizes the discrepancies later.
6. Creating a Billing Document for the Customer:
In SD, you create a billing document for the sales order. Depending on the Customizing settings , you draw up the billing document on the basis of the order quantity or on the basis of the quantity specified in the vendor invoice. If the customer is billed on the basis of the order quantity, you can create the billing document immediately after the sales order is entered. If the customer is billed on the basis of the quantity specified in the vendor invoice, you cannot create the billing document until the vendor invoice has been entered in Invoice Verification.
Hope this helps
Thanks & Regards,
Rahul.

Third party Procurement process

Hi all,
Can anyone explain me the third party procurement process steps involved in MM .
Thanks ,
Srinivas Nomula .

Dear Srinivas,
Do you think of third party process or subcontracting?
In both cases you can use (and please use) the search function of the forum and SAP online help before opening your own thread.
E.g.
http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b91be43ad11d189410000e829fbbd/frameset.htm
http://help.sap.com/saphelp_erp2005/helpdata/en/dd/560287545a11d1a7020000e829fd11/frameset.htm
Third party process in MM
Third party process - error
Regards,
Csaba

Third party purchase order receipt

Hii...
I have created a third party PO for delivery of goods directly to customer.
Now my question is it is necessary to do goods receipt when i am not receiving the material in my plant,
how do i proceeed futher.
Regards

Hii Manoj Kumar....
I Have 2 questions in mind
1. how do i do GR is it necessary to first create inbond delivery and than do GR.
why is it necessary to do inbond deliver?
2.Dose system ask for strage location during GR.
Can you explain me slightly in detail..
regards
SARFRAZ

Third party Procurement/Sales

Can anybody please explain me third party/sales/procurement?
Amit

http://help.sap.com/erp2005_ehp_04/helpdata/EN/dd/560287545a11d1a7020000e829fd11/frameset.htm

Unable to enter SC vendor as Delivery address in Third party procurement

Hi all,
Im creating a Third party Purchase order against sales order i.e. Account assignemnt cat as E and Item cat as S.
But my delivery address is my subcontractor. In item details Delivery Address tab if I enter the Vendor number and Put a tick mark on SC vendor, when I do GR against this order Stock will will be posted to Subcontracting vendor stock.
But in Third party PO tht tick mark is in display mode.
If I create Purchase Order without account assignment and Item cat Im able to select the SC vendor field.
I checked the screen lay out Account assignment E tht field is optional entry.
regards
Durga Ram
can any one tell me wht configs I missed ?

Hi
do this.
First enter your vendor,PO,PG,CC and then dont directly enter item category and account assgt category.
first enter material,qty,price ,plant etc.
then go to item detail screen for del. addresss and enter vendor and tick SC.
after that enter item category and acct assgt category.
reward if it helps
rb

Third party ships goods. Automatic GR in our company?

Hi,
We have a PO. The PO idoc is send to the vendor (orders05).
The vendor sends an confirmation Idoc back (ordrssp).
Then then vendor sends the goods directly to the end customer.
Can I post an automatic goods receipt? We do not check or the customer
receives the goods. In our process this is always the case.
1) Can I use an GR Idoc?
2) If so, which one?
3) Or should I always use the inbound delivery (ASN) and post GR by my self?
Please advice.
Best Regards,
Eric van Zundert.

Hi,
In the item category VOV7
when F= Order related Billing status according to Invoice qty, hence system allows VF01 only after MIRO is completed. That is the standard behaviour.
I heve never tried this , but please check by changing to "G = Order related Billing status according to Delivery qty"
Hope this helps.
Regards,
Sharan

Third party procurement configuration steps

Hi all,
I have process flow knowledge.
Can some body explain me congifuration steps & key elements that are to be taken care in the process.
thanks

Hi,
3rd Party is nothing but trading business. you Receive a order from your customer (sales Order) n Issue/raise Purchase Order on Vendor. and ask ur vendor to delivery the goods directly to your customer.
steps in R/3
1. Create Sales Order (VA01)
2. System will create PR in backgroud (ME53N)
3. Convert PR into PO. (ME21N)
4. Create GR (Optional) (MIGO-101)
5. Create IV(Vendor Invoice) (MIRO)
6. and finally Generate SD Billing (VF01)
This is SD-MM Integrated business process.
hope this will clear you.
Regards,
Hareesha k

QM in Third Party Orders

Gurus
In one of my scenario I want to deactivate Inspection Lot generation for Third Party Procurements
If I procure Material M1 with Inspection Type - 01 from Vendor V1 through normal procurement inspection lot should be created (Which is working fine) but if I prcoure same material from the same vendor but this time and its directly been dispatched to the Customer then in this flow
I need to create GR (Statistical GR - To ensure Material is received by Customer and accounting entries)
This time Inspection lots are getting generated.
How can I restrict this ?
Thanks
KK

Hi KK,
What I have understood is, you donu2019t want inspection lot to generation if the consignment is directly going to customer.
Inspection activity is based on the movement type. By which movement type this material is dispatched to your customer? Deactivate inspection for that movement type. Follow this path for the same. QCC0 -> Quality inspection > inspection lot generation > Inspection for goods movement > Deactivate Quality Inspection for a Movement Type >Select the movement and tick on QM Not active checkbox.
If you are using the same movement type in both the cases, I would suggest to customize the different movement type and deactivate QM for that movement.
This will ensure no generation of inspection lot.
Regards,
Anand Rao

Third Party Sale with Consignment ?

Hi All
Our client has a very specific requirement , they want their vender to put the stock at the customer's premises , so that the customer can use the material as per their requirement . Clint is a Treading concern. So how to map the scenario ?
to my mind it involves third party sale as the client is a treading concern and want the material to be delivered from vendor's plant to the customer directly. But also involves consignment sale as we cant bill the customer untill and unless the customer inform us about the quantity they have consumed.
So please suggest any idea with detail process only.
Thanks in advance
Ashok
Please suggest....
Edited by: Ashok ku. on Nov 26, 2009 10:18 AM

Hi Ashok,
this is clearly a third party scenario.
you bill the customer on the basis of vendor's invoice.
and vendor will invoice the customer only when the customer uses the materials.
so from the perspective of a vendor,
its a consignment scenario.
so just follow our standard third party scenario.
good luck.
Regards
Atul Tembe

Third party & intercompany

Hello SAP gurus
I have small confusion regarding the thirdparty and intercompany sales.
Could you please tell me the difference between third party and intercompany sale.Inboth the cases the delivering plant is different and goods are deliveried to customer directly .for me the process seems to same .
Thanking you.
Regards
Srikanth

Hi
Intercompany-
Customer orders goods to company code/Sales organization A .A Sales org will accept and bill the order in the system. Company code/sales org B will deliver the goods to end customer and raise an intercompany billing on with reference to delivery. This can happen only after sales org 1 raises invoice to his end customer to whom the material has been delivered by sales organisation 2.
Third Party :
Here the customer orders the goods to the company . So the company orders the vendor to supply the goods to the customer and there by company raises the invoive to the customer and the vendo sends the invoice to the company code
Difference between Intercompany and Third party is Here(In third party) the goods will be supplied to the customer thru outside source where as in intercompany goods will be supplied from the Internal source. Here the intercompany billing is generated as soon as we do the pgi to the customer, but in third party we will bil the goods to the customer after vendor sends the invoice to the company.
Regards

Diffrent Between Goods Receipt Transaction Code MB01 and MIGO?

Dear All
Could anyone please tell me different between goods receipt by MB01 and MIGO.
Should I choose MIGO or MB01.
Thank and Best Regards,
Thang

Hi,
It is better to use MIGO.
MIGO replaces all the conventional transactions for posting goods movements, whose transaction codes start with MB*.
You can use the transaction (MIGO) to post the following goods movements:
- Goods receipts from external procurement
- Goods receipts for orders
- 'Other' goods receipts
- Return deliveries and subsequent deliveries
- Goods issues
- Transfer postings and stock transfers
- Subsequent adjustment for subcontracting
The advantages this transaction brings
This transaction provides many advantages over the old transaction for posting goods movements, for example:
- You can maintain and display all the data on one screen. You can find all the information you need for an item without having to switch from screen to screen. You can just hide any detailed information you do not require.
- When you enter goods movements, the system does not issue any messages; before you post the goods movements, you can display all the messages at once.
- Instead of having to enter the same data every time you enter a new goods movement (for example, plant, storage location, or movement type), you enter the data you use most often only once via Settings -> Default values. The system then proposes this data every time you enter a goods movement.
- If you do not know the exact name of the material, plant, or storage location, you just enter part of the number or a description. The system then searches for and proposes the complete term for you.
How the screen is structured
The screen is split into three areas:
- Overview tree
You can show and hide this area via the Overview on/off pushbutton. The overview screen displays the last ten documents for orders, reservations, material documents or held data. You thereby always have an overview of the last activities you carried out.
- Header data
You can show and hide this area via the Open/close header data pushbutton.
- Detail data
You can show this area by clicking on the item for which you want to display detail data in the Line column of the item overview. You can hide the detail data again by choosing Close detail data.
Each time you call up the transaction, the screen is displayed as it was configured the last time you used it.

Finished goods procurement - Not htrough Third party order

Hi
The scenario:
The client purchases some Finished goods,which they are not manufacturing, directly from vendor, (i.e.) the sale sorder requirement for some Finished goods are directly procured from vendor and they require those items to be receipted back from vendor in sales order stock.Then they will deliver to customer.
In normal third party order , i think the Sales order triggers back to back PR with Account Assignment for statistical delivery and Item category 'S', third party. In these cases can we have the physical stock of the material in our Storage location in sales order stock and delivery can happen from thereon.
Please inform me the configuration for the same and any solution to map the process.
Thanks very much in advance
regards
arvind

hi ,
this is individual purchase order scenario....
while creating sales order you have to change item category from TAN to TAB.
then automatically PR created in sales order...
that you can see in VA02 ---scheduline category view.
then you create PO.
goods receipt.
create outbound delivery in VL01N.( with reference to order).
Create Billing to customer
otherwise you create material master as follows.
material type --- Trading goods.
General item category--- BANC.
item category-- TAB.
rewarws if helpful

Third party credit update with goods receipt

Hi Experts,
I need to know how customize the credit control management in the following situation:
In third party flow without SD delivery: Sales Order -> Purchase requisition -> Purchase
Order ->Goods Receips from supplier.
The credit control has to be done with the delivered amount not
invoiced. But in this flow the SD delivery is substitue by MM Goods
Receipt in order to deliver products to the customers. When goods
receipt is done the delivered credit amount isn't updated.
it's necessary to check the amount delivered not the amount ordered (as it's done with the current customization)
The customizing is:
the item category:
billing relevance 'B': Relevant for order-related billing - status
acc.to order qty
o Copying control -> invoiced quantity indicator 'E': Goods receipt
quantity less invoiced quantity
Schedule type: u2018CSu2019
Credit control area update group: 00012
Automatic control check : 'D', flag in open deliveries.
We have checked note 410685 but not solution has been found.
Example: Customer has a credit limit 1000 euros.
1) Create a sales order with an total amount 900 euros.
2) Create purchase order with the purchase requisition created
automatically by the sales order and release it.
3) Do goods receipt for an total amount 800.
4) Create another sales order with a total amount 150 euros.
Now, the new sales order is blocked, because the calculated credit is
100 (credit limit - ordered amount). If the credit is calculated with
the delivered quantity, the credit will be 200 and the new sales order
won't be blocked.
Thanks in advance,
Laura

Hi Nagesh,
In any credit memo scenario, always enable the creation of Credit Memo Request and then Credit memo. When the credit memo request is to be created, make sure that it is always created with reference to the invoice document only and not reference to the sales order, as the objective of Credit memo is to correct the prices in the invoice document. This will help you in various scenarios like exchange rate where the value of sales order and the value of invoice can be different in the local currency due to ex.rate fluctuations.
As credit memo takes care of incorrect prices, having a document flow of credit memo request with reference to sales order is incorrect.
With reference to the error message, it is a valid message as an invoice has been created with reference to the order. You should not create a credit memo with reference to a sales order(OR), for credit memo, u shd use a credit memo request only as the reference.
Hence the flow for your question is
Sales order>Invoice>Credit Memo req-->Credit Memo
OR>F2>G2W(Confirm with others on the doc type)-->G2S
Pls lemme know if you need further clarifications in this topic.

Third Party Procurement Goods Receipt

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