Third party procurement

Question

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

Answer 1

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.