Third party sales clarification.

Hi Gurus,
I want clarification on Third Party Sales. Assume that Customer Ordered 10 Qty, Suppose If Vendor delivered  9 Qty to the Customer. With the same 9 Quantity he Billed Us. Now we have to Bill the customer with 9 quantity..How it happens? Shall we again change thae sales order to 9 ? Why Iam asking means..In Item cateory (TAS), the Billing relevence indicator is F.(Invoice with the Order Qty)
Regards
Jyothi.

Hi
F: Order-related billing doc. - status according to invoice quantity
Relevant for order-related billing documents based on the invoice receipt quantity (third-party business transaction). The system transfers the order into the billing due list only after the vendor invoice has been received and processed in the purchasing department. After the receipt of each invoice, a  customer invoice is created for the quantity that appears on the vendor invoice. The order has status "Billed" until the next vendor invoice is received.
This the explanation of F billing relevance appearing in third party item cat TAS
This is very explanatory
So in your case you can bill only 9
Regards
Raja

Similar Messages

  • Tax & Excise in Third Party Sales

    Hi Friends,
    As per Std.SAP in third party Sales Scenario a PR will be automatically created when we save the SO & out of that we create a PO.
    Now kindly provide clarifications for the below query's
    1. When we create a PO with respect to this PR (Is taxes & excise applicable) ?
    2. How we have to maintain this Third Party Material in J1ID inorder to determine the excise rates for Calculation?
    3. As per this Scenario our Vendor will deliver the goods to our customer & we will do a Statistical GR which will post to the consumption & GR/IR clearing accounts. Now what will the impact in Excise side as our material in the PO is subjected to excise?
    4. Do we take the Cenvat credit as in case of Raw materials??
    Since I am not clear in the excise & taxes part of this Scenario. Please help me..
    Regards,

    Excise Duty: Excise Duty is applicable only in an manufacturing scenario in India. I will illustrate with sone examples, as under:
    Example 1:
    Sales from Plant 'A', material 'B' (manufactured product) to Customer 'XYZ'.
    Customer XYZ orders material 'B', which is supplied from plant 'A', say quantity 1. Sale Base Value is Rs. 100/-, Basic Excise Duty 10%, Education Cess 2%, Higher Education Cess 1%, Vat 12.5%
    (Excise Duty will be applicable and reflect as a separate component in above scenario)
    Example 2:
    Stock Transfer from Plant 'A', material 'B' (manufactured product) to Plant 'D'.
    Plant 'D' has a requirement for material 'B', which is supplied from plant 'A', say quantity 1. Assessable Value is Rs. 80/-, Basic Excise Duty 10%, Education Cess 2%, Higher Education Cess 1%
    (Excise Duty will be applicable and reflect as a separate component, but Vat will not be applicable in above scenario)
    Example 3:
    Sales from Plant 'A', material 'B' (Trading product) to Customer 'XYZ'.
    Customer XYZ orders material 'B', which is supplied from plant 'A', say quantity 1. Sale Base Value is Rs. 120/-, Vat 12.5%
    (Excise Duty will not be applicable in above scenario)
    Regards,
    Rajesh Banka

  • Cannot do MIGO in Third Party Sales Process with shipping notification

    In the Third party sales process with Shipping notification,the item category for the material is TAS (Billing relevance=R),item category group is BANS.
    Intially sales order is created,then using me21n with reference to purchase requisation purchase order is created,then in MIGO stage i used the PO No there but i get the message no item found in PO.
    what adjustment have to be done in order to do MIGO

    Refer following SDN thread, by that you will be able to get overview on best practices about Third Party Sales & necessary configuration you need to follow for statistical GR:
    - Third party direct shipment (II)
    Further maintain Billing Relevance for Item Category as G - Order-related billing of the delivery quantity.
    Regards
    JP

  • Accounting Entries hit in Third party Sales Process

    Hi,
    Can anybody tell which accounting entries are hit when we create the following entries in third party sales process
    1.When Sales Order is created.
    2.When PR is Created
    3.When ME21N is done
    4.MIGO
    5.MIRO
    please provide your valuable suggestion..
    Thanks...

    Hi,
    1. When Sales Order is created.
    No FI Entry
    2. When PR is Created
    No FI Entry
    3. When ME21N is done
    No FI Entry
    4. MIGO
    (GBB-VAY) COGS - 3rd Party A/c - Dr
    (WRX) GR/IR Clearing A/c - Cr
    5. MIRO
    Vendor Account - Cr
    GR/IR Clearing A/c - Dr
    6. VF01
    Customer Account - Dr
    Sales Revenue A/c - Cr

  • Return process in Third Party Sales

    Hi ppl need some help,
    In Third party Sales what happens if certain goods supplied by the Vendor to the customer are 'Defective' & are to be returned by the customer.
    Does the customer return it to the Company to which he placed the order or he returns it to the Vendor.
    How can we configure this process in SAP to settle the billing & issue the credit memo to the customer?
    Shilpi

    Hi Shilpi,
    third party Return process you can configure like this,
    Take return goods from ur customer, Your customer will return goods to you and not to vendor, remember one thing ur cutomer doesnt know who is vendor.
    Create CR with refeerence to RE. Because RE will contain that Product and quantity which you ar getting back from the Customer and that you have invoiced the customer.
    E.G. If you Sent 2 Quantiy of Materail XYZ at 50 Rs each to the customer, but you Got invoice from ur vendor at 40 Rs Each.
    and if customer retuirn 1 quantity u have to return him 50 Rs and not 40 Rs.
    So Create CR with respect to RE.
    Hope this will help.
    Revert back if u need any further help.
    Thanks,
    Raja

  • GR date (MIGO) as the Billing date in Third Party Sale

    Dear All,
    I have a scenario where the GR date should be the billing date in third party sale.
    Can it be accomplished by any user exits of billing? Please share your ideas and if this can be done through user exit, please name the user exit.
    Thanks in advance.
    Regards,
    Ipsit

    hi,
    read sales order number or PO number or get the information from document flow of VBFA if pO exists thengo to PO history in EKBE table if BWART - 101 then trigger billing document with reference to SALES ORDER on the same day.
    for that you need to create a Back Ground Job in SM36.
    balajia

  • In Third party sales, Part of MM..?

    Hi guru's
    Can explain about third party sales and what is major part of work for MM in that.
    1.Please send me the overall flow in Third party sales process  with Transaction codes.
    thanks
    sap-mm

    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.
    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 *--
    i think this will be helpful to you

  • In third party sales order process how  business come to know that the vend

    Hi SD Gurus,
    In third party sales order process how  business come to know that the vendor has delivery the goods to the customer?
    Where Business will check whether Vendor has delivered the goods or not to the customer?
    Thanks & Regards,
    Nivas

    Hi,
    Process
    VA01 - Create sales order (Schedule line CS and item category TAS) >> ME52N - PR is generated after save of sales order >> ME21N - Convert PR in to P.O >> Then vendor will send goods to customer and will send invoice to our company >> MIRO - Invoice receipt from vendor >> VF01 - Final invoice to customer
    When you enter vendor invoice then you come to know that vendor sent qty. same will be billed to customer(Billing relevance in item category should be F)
    Kapil

  • Third party sales orders are not showing in Billing due list (VF04 )

    Hi,
    In Billing due list Third party sales orders are not appearing because VKDFS table those entries are there. How can we get Third party sales orders in VKDFS table as well as VF04 ?
    Please suggest me.
    Regards,
    KUR

    Hi Kur & Sandepp,
    Check this notes:A) Note 210500 - Billing status of a third-party item,B)2) Note 210561 - When is a third-party item displayed in VF04.
    Re
    Regards,
    Madhu.

  • Credit Management not working for Third Party Sale

    Hi Experts,
    We have a scenario of Third party sale where sales order generate purchase requision after saving. Now we have appled static credit check to the customer, at the time of saving sales document it warns credit limit is over same time it doesn't allow to save, displaying incompletion log - " Subsequent function 'Purchase requisition from sales document' not possible due to a credit block".
    Pl. suggest us, since it is third party sale no delivery is available, so we cann't apply credit check at the time of delivery also.So what would be the solution.
    Kindly help.
    Thanks
    Prashant Ray

    Hi Prashant,
    Check in FD32 what is the credit limit and try to do the cahnges there if required.
    Also you can relase the SO through VKM3 / 2 /4.This will allow you to releasea nd the save the SO.
    Hope it helps
    Regards
    Rohit.

  • Third party sales revenue getting posted to Profit Center valuation in COPA

    Hi,
    We have activate profit center valuation for our operating concern.
    During normal OTC cycle (third party sales), all the data is flowing correctly in legal view for the COPA document
    In profit center valuation, only revenue is flowing and no other values like discounts, standard costs are flowing to Profit center valuation view
    My question why only revenue is flowing and not any other values. Is this way system should behave
    Thanks.

    If you have created new GL Accounts to map the Third party scenario, the pre-requesite is that you might need to create cost elemenet with category 11 or 12.
    Further only assignments are condition types assigned to value fields.
    Check if the billing type is reset under TCode KE4W.

  • Error while Creating PO from Purchase Requistion in Third Party  Sales

    Dear Team,
                          While Creating the Purchase Order from Purchase Requistion in Third Party Sales. When I am saving the PO I am getting the Error in GL Account Cannot be Used. I have disabled the field G/L Account in settings of Account Assignment Category of Third Party. Still I am facing that Error while Creating Purchase Order.  Can you guide me where we do this Assignment of G/L Account so that I can change the G/L Account.
    Thanks,
    Farhan.

    Dear Farhan,
    1. Go to T. Code: FS00 and enter GL number and Company Code and go to Tab: Create/bank/interest, write down the field status group.
    2. Go to T. Code: OBC4 and Select your Field Status Variant and Double Click: Field Status Group (From Left-hand Dialog Structure)
    Double-Click on to Field Status Group (as noted down from in Step 1).
    From Select group, Select Additional account assignments and make Earmarked Funds, as optional.
    Best Regards,
    Amit

  • Excise configuration in case of Third party sales

    In case of third party sales of a excisable material, where the goods are supplied directly to customer by the vendor.
    However the customer invoice is sent to the customer my organization
    How will the excise entries take place?
    Because in this case goods are not supplied from my depot, Also i need to charge the customer for excise, since the goods are excisable.
    Can I claim the excise benefit for the above sale process?
    Please revert
    Regards
    Sudhir Chavan

    As the goods are not delivered from your factory premise and are delivered for vendor.
    Means in system there is no outward goods movement from your plant.
    So, logically you should not create Excise invoice for this.
    But, you may need to consider VAT/CST based on the sales.
    And that doesn't require any excise invoice.
    Thus, no requirement of Excise configuration in case of Third party sales.
    Yes, from procurement point of view, you would be paying excise to the vendor for this purchase.
    Regards
    JP

  • How to raise customer invoice in case of third party sale from PS

    Dear All,
               In case of third party sale from project systems module, PR is raised which is further converted to PO and once the material reaches at client place GRN is done.Based upon the GRN the actual cost is booked to the project.How should I raise the customer invoice against the materials received by the customer?
    I went through the Forum and based upon the threads there, I came to know that one option is to  create sales order for the same items and do order based billings.But for this I have to enter the same materials items again in the Sales order which is nothing but duplicacy of data.
    Is there any alternative to this? Or some other way by which the PO line items be copied to sales order so that I can save time while creating sales order.
    Regards,
    B P Singh

    Hi Virendra,
                       Business scenario is like this.
    I have created project and activities.Have assigned materials as 3rd party sale in NWA. I have released the project.PR are getting followed by PO.On doing the GR the actual costs are getting booked on NWA.
    My concern is how to bill the Items(the same material components) which are assigned to activity.
    As per your input I need to do Resource Related billing.Thanks for the input.It is no longer required to assign materials in DIP to Carry out RRB. 
    To carry out RRB do I need to create Sales Order first ? If  No then how to do RRB? If Yes  I need to create a Sales Order with all the material components which I have assigned at activity level. So I was looking for some alternative so that SO creation becomes less tedious.
    Regards,
    B P Singh

  • Capture cost of procured materials in a third party sales order scenario

    Dear Experts,
    I'm developing a third party sales order solution to my company following the recommended third party scenario by SAP.
    Everything is working fine from creation of sales order, automatic creation of purchase requisition, create purchase order using the purchase requisition ect...
    The problem I have is the in the Sales order, the cost of the material is not getting captured correctly. The condition maintained in the sales order is VPRS and it is deriving the material cost from the material master record. Ideally it should be deriving the material cost from the invoiced value or else from the purchase order(which is the actual amount we are spending to buy the items). Deriving the cost from material master depicts an incorrect profit in the sales order.
    Can someone please advice me how to derive the cost(to be shown in the sales order under VPRS condition)from the invoice or the purchase requisition and Not from the material master.
    I'll be grateful if you can describe in a step by step proceedure.
    Thanks in advance

    Hi Lakshmipathi
    Thanks alot for your response.
    As u mentioned, at the point of sales order creation the price does gets picked up from the Material Master.
    But during Billing, it does NOT get updated to reflect the purchase order price. If that happens, then its perfect.
    I did a complete testing cycle and the material master price remains unchanged throught the process upto billing.
    Is there any special parameter that I should maintain in VPRS condition for this to happen?
    Anyway thanks again for ur reply, appreciate it alot. Let me know your views on this.
    As u advise I'll post it on the sales forum as well.
    Regards,
    Randika

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