Third party sales with out hitting the FI

Dear SD gurus
I have a requirement with one of my client.
The client sends a PO to a vendor in Thailand plant from the Home country. The vendor in-turn manufacture's the materials from the PO and delivers it to the customer place and at the same time the vendor himself simultaneously sends the invoice to the customer and receives the payment. The requirement is that the client wants to track the sales process and also the reports relevant for the same but without hitting the FICO.
They send only the Purchase order with the sales order created from the home country and nothing else they do with the SO.
Kindly give me a solution to handle this requirement.

Hi,
For third party sap has provided TAS item category, wherein when you create a order, a PR will be created and then a PO.
This PO will go to the vendor and who in turn send the goods directly to the customer.
The vendor sends us the POD and invoice by which we can do the Goods receipt and invoice receipt in SAP.
Now here with help of a MM resource you can map the scenario by which you can do the GR and also show the necessary accounting entries etc. with help of FI resource.
I am not sure what approval process you are talking about... Plz elaborate so that we can help you out.
Regards,
SB

Similar Messages

Problem in Partial Billing for Third Party Sales with Shipping Notification

Hello Guys,
There is one issue related to a scenario of Third party Sales with shipping notification. Here the basic process that runs
are : Sales order --- > PR -- > PO --> MIGO --> Billing document --> Vendor Invoice Verification.
In this specific scenario, partial billing is not happening and the billing relevance for item category "B" and in copying control data
from sales order to billing doccument, the biling quantity field is "A".
Could anyone throw some light on the configuration part so that partial invoicing can happen ??? Please make a note of the fact
that billing documents are generated after MIGO is done.
Regards,
Sarthak

Finally resolved

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 Sale with status profile.

Dear All,
We have one business scenario of third party sale, My client is asking to configure that.
We have created third party scenario in SD,
When we create Sales order , status profile has been set
Say,
1st Crete
2nd Verify
3rd Finance
4th Rejected
When approved at third stage it should be create purchase requisition.
But if we reject this (4th stage) then PR should be auto cancel or deleted.
Can it possible:???
If possible then what should be configuration ??
Thanks in advance...

Hi Rohit,
Yes, this is possible
Create a user status in OIBS transaction code as
and if you double click on each status in the next screen you can see Transaction control
Click on create option and choose Material Purchase Requisition as Allowed for CRTE, VERF, FIN
and choose Forbidden option for REJ status
It is not necessary to create the status as defined above, you can define status as you wish, but sequence should be maintained as shown
try and revert if you got stuck anywhere
thanks
santosh

Third party sales with real inventory movements

We need to define in SAP process for the following scenario: the company receives order from an affiliated company (its customer) and at that point purchases the goods from external vendors. The vendor sends the goods directly to the customer, but the company wants to record real goods receipt and goods issue with accounting entries. Moreover the company serves as internal purchasing department for the group of affiliated companies and they want the employees of the end client to be able to record in SAP their order in order to have approval process in SAP.
What is the best way to configure that so data is entered only once and converts autpomatically from SO to PO or from PO to SO? I was thinking to create first SO that would automatically create PR, which would get converted to PO, but how to do the approval process?

Hi,
For third party sap has provided TAS item category, wherein when you create a order, a PR will be created and then a PO.
This PO will go to the vendor and who in turn send the goods directly to the customer.
The vendor sends us the POD and invoice by which we can do the Goods receipt and invoice receipt in SAP.
Now here with help of a MM resource you can map the scenario by which you can do the GR and also show the necessary accounting entries etc. with help of FI resource.
I am not sure what approval process you are talking about... Plz elaborate so that we can help you out.
Regards,
SB

Third party sale scenario: COGS not allowed as automatically posted.

Dear Gurus,
I have come across this error during execution of third party sale scenario.
When the user enters a PO with reference to PR which is in reference to SO, one error pops up which says COGS cannot be automatically posted only.
When I deselect the "Post automatically" tick, the PO can be saved.
Process we are following during third party sale process:-
1. Sales order.
2. PR with reference to Sales order.
3. Purchase order with reference to PR.
4. Statistical GR with reference to PO.: COGS Dr. To GR/IR Clearing account Cr.
5. Sales Invoice: Customer Dr. To Sales Cr.
6. MIRO: GR/IR Clearing account Dr. To Vendor Cr.
I have my own doubts on the statistical GR part. Can you pls. validate the same.
Also in case of third party sale, what will be the CO object as COGS is not created a cost element. (SAP standard)
Regards,
Harnish Shah

Hi
Please check the steps for 3rd business process.
Sales Order:VA01
List of Sales Order:VA05
Purchase Order with reference to Purchase Requisition: ME21N
Inbound Delivery:VL31N Material Receipt:MIGO
Result Recording Work list:QE51N
QM Usage Decision:QA32
Activities due for Shipping `Sales Orders, fast display` VL10A　(VL01N)
Post of Goods Issue (PGI):VL02N
Post of Goods Deliver:VLPOD
Post the Billing doc VF01 or Maintain the Billing due list-VF04
Release Billing Document for Accounting VFX3
Delivery Document list ZVL05
Edit Work list for Invoice List VF24
Output of Billing Document VF31
Customer Payment F-28
As per my knowledge once psot the PGI,System will upddate COGS values.
Regards
asuvamsi

Return Sales of Third Party Sales

Dear Guru's,
My scenario is that I have done Third Party Sales with Shipping Notification (Sale Ord - PR - PO - MIGO - MIRO - Cust. Invoice) in SAP System. According to this vendor has delivered the material to the customer but customer found some damage to the material
and now the customer wants to return this material and also required credit for paid amount. So whom should the customer send this complaint (ofcorz to the company) and how the company will handle this return process to provide the credit to the customer.
Company can convince the customer for subsequent free of charge delivery also but tell me how that flow would be in SAP.
I have to map this with correct Financial impacts. Please Guru's guide me on the above scenario and if you need some more input
please ask me. Suggestions are also welcome.
regards,
Vojas

Dear Vojas,
You can ask your client as to how they process practically in this scenario.
You can do...
Create return sales order wrt original SO or Billing doc. --> Create return delivery with move. type 651. So there will not be any accounting doc. created --> then wrt return SO you can create credit memo or if the customer agrees, company can deliver free of charge material
Then
Create Subsequent FOC SO wrt original SO -
Here For this FOC SO, at schedule line VOV6, assign Order type as NB- PR and Item category as 5. So again PR will be created and you can process like normal Third party process. Here you will not bill the customer.
Hope you get some inputs
regards,
Sagar

Third Party Sales Order in COPA - adjusted cost

We have a third party sales order which creates the Preq and then the pruchase order. We have statistical conditions on the purchase order. We have switched the billing relavency on the item category TAS to a B to allow billing before the invoice recipt from the oversees vendor. Billing block is on the order until inbound delivery is updated.
A purchase order is created with statistical conditions for an accrual amount (palletization charge). When the goods receipt is performed against an inbound delivery and the billing block is removed, a customer invoice is created and the correct value, cost plus the accrual amount, posts into the customer billing document vprs condition and posts accordingly to co-pa.
The issue is that when the invoice receipt is performed against the purchase order, the normal FI document is created against the vendor and gr/ir account. However, at this time an adjustment to the vprs is posted against the original billing document vprs condition for the statistical condition on the purchase order. This adjustment to the vprs condition then creates a copa document which reduces the cost of goods sold value field.
Any ideas on how to prevent this adjustment to the co-pa cogs value?

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 sale and stockable item

Hi all , We have some products . For example "A " . We buy it from one vendor and maintain its stock and sale it as and when order comes . Same product when there is demand we sale it by third party process instead of holding the stocks we instruct vendor to send the delivery directly to customer . Process is similar to third party process in SAP . For such material how can I make material master.
1>> which Material type I have to maintain on first screen ?
2>> what will be the other configuration or values in other fields of master

Hi,
Please search for the SAP building blocks for Third party sale with Shipping and Third party sale W/O shipping
U can use FERT as material type only
regards,
sujit

Third Party Sale order Billing Before Before MM Billing

Hi,
In our company case . we are not dependent for MM billing . Our Sale order billing is independent and it's on the daily bases.
i have done following changes
item category to TAS
VoV7 'TAS' Billing Relevance to 'B' Relevant for order-related billing - status according to order quantity
VTFA (Order,to,bill,copying,control)
But when i am doing SD Billing VF01
error messages:
Message no. VF17 Document 15000962 does not contain any items with open quantities
Message no VF147 1015000962 000010 No open billing quantity has been determined
plz resolve this problem
regard
khurram

we don't want to Depend upon MM. Because, we have to update our customers ledger with creation of Sale order and PR.
What does it mean by don't want to depend upon MM?
How the vendor delivery the goods if you create only PR ? with ref to PR vendor delivery the goods?
PR is not a legal document unlike PO which is legal document, in standard with ref to PO , MIGO MIRO are created.
Also you mentioned
note: Vender send us hard copy of desptaches after one week. so with that we invocie our PO.
After one week how does the PO comes into picture will you create PO with ref to PR after dispatch notification comes to you after one week by vendor then you do MIGO and MRIO?
Please note : In 3rd party sales we have two kinds of process.
1. 3rd party sales with out shipping notification( this is SAP standard, settings already available no need any changes)
Here we do the customer invoice after vendor payment only...
2. 3rd party sales with shipping notification(here we need to do small changes as i mentioned above)
in the process you need not to wait till the vendor payment(MIRO), as per your requirement you can bill the customer before vendor payment(MIRO)...But here MIGO is mandatory.However it is dummy MIGO( no inventory updates).
Actualy , we don't want to Depend upon MM. Because, we have to update our customers ledger with creation of Sale order and PR.
Beacuse we want to update our customer ledger on daily bases.
Let us assume you are creating customer invoice with ref to sales order and in your case you mentioned you won't do MIGO or MIRO before customer invoice creation so in this case for how much qty you bill the customer on daily basis?
If the vendor delivery goods lesser qty than order qty then how do you manage with out doing MIGO or MIRO?
Please answer the above questions?
You may able to create customer invoice with ref to order with out MIGO or MIRO by changing some copy control but you can't bill the exact qty to the customer if you don't do MIGO or MIGO.
So i suggest you to go with 3rd party sales with shipping notifications .
Here sale order( VA01)
PO (with ref PR).
MIGO( dummy MIGO)
VF01( customer invoice)
MIRO( vendor payment)
thanks,
Srinu.

CO-PA issue in Thirds Party Sales & Cross Company Code Sales

Hi,
In Third Party Sales with Shipping Notification and Cross Company Sales the CO-PA report is not reflecting the correct material cost. CO-PA is updating the material cost directly from the Material Master. Cross Company sales condition type PI02 & IV02 is using for pricing. IV02 is working perfect, but PI02 is not !
In detail, for Third Party Sales with Shipping Notification, no material is available in the stock. In material master the material cost display as $ 10/EA. But the Purchase Order value is $ 15/EA. During Goods Receipt time system is taking the cost as $ 15. While Billing time to the customer, system is posting to the CO-PA the material cost as $10/EA. FI postings are perfect, but CO-PA posting is not correct. CO-PA and P&L reconciliation is not matching due to this issue !
Waiting for the help.
Best regards,
Joby

Have you considered using this user-exit?
User Exits in the SAPFV45PF0E and SAPFV45PF0C Programs
EXIT_SAPFV45P_001
You can use this user exit to decide whether intercompany billing data is used in the profitability segment for cross-company code sales, or whether the data comes from external billing (external customer, sales data from the selling company code.
Thanks,
Ben

Third party sales configuration

Dear
I needed your guidance for third party sales when vendor supply the material to the customer we keep item category group BANS and stock entered virtually in our stock and then vendor invoice generated and received by the company through MIGO and MIRO.
My question is that when vendor supply to the company and company supply to the client or other wise I can say our item category is HAWA in that case what will be process can you elaborate the process and configuration of the scenario.
Thanks
Riti

Hi Riti,
Just adding to Kapil's input,
hope below input will helpyou
An Example Of Third Party Sales
Scenario:
2 companies are created in system - India & Singapore Customer places sales order for particular material on Singapore. Singapore is not able to produce the same. They pass on the order to India for processing. After processing India ships the material directly to the customer along with necessary documentation. Invoice copy is passed on to Singapore. Final Commercial Invoice will be raised by Singapore. How can the above scenario handled?
By: Balaji
You can do this using third party sales.
The third party sales process is as under.
1) Singapore company creates an order for the singapore customer.
2) Because of the configuration settings of the sales document type, item category & schedule line category, as soon as the order is saved a PR (purchase requisition) is automatically generated. This is converted into PO (purchase order) and sent to the Indian company.
3) Indian company supplies the material directly to the Singapore customer.
4) Indian company sends the invoice to the Singapore Company.
5) Singapore company does the invoice verification in MM using tcode MIRO.
6) Singapore company raises the invoice to the singapore customer.
In standard SAP, item category TAS is used for this. The schedule line category is CS. Here you can see a field 'order type' with value 'NB'. This triggers the automatic creation of the PR.
Plus in the material master also you need to do certain settings.
1) 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.
2) If you are not always allowing third party order processing then you 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).
In the item category the billing relevance should be 'F'.
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.
Regads Siva

Removing Delition indicator in PR in third party sale

Hi,
In third party sale when i apply the reason of rejection against of line item, it get refelect automatically in purchase requestion as delition mark against of same item.
but when i remove the reason of rejection in sales order, it does not flow in purchase requestion and item gets remain with delition indicator.
If i go directly in purchase requestion and remove the delition mark, system gives the message that it will change from associate sales order only while i have already removed the reason of rejection from associate sales order already.
Please let me know how this removeing of reason of rejection will make impact in PR for removing the delition indicator or if i want to do manually in PR then how can i do in this scenario.
Thanks in advance
Jalaj garg

Hi Jalal,
The way system is performing is expected.
A third party order is linked to the PR and after PR creation, the changes done in order will reflect in the PR. i..e Deletion indicator in SO will also put a deletion indicator in PR. First of all I dont know if you were allowed to put reason for rejection at order level. Ideally you should put deletion idncator at PR first and it will updaet SO. Also removal of deletion indicator also should start from PR adn not from SO.
i.e. Once PR is created, any changes to the process should be PR triggered. Changes triggered in SO will mostly not result in any changes in PR, I am not sure about the reason for rejection though. What I have said applies for scheduling , transportation etc.

How to know Delivery Note no. for Third Party sales

Hello Experts,
I am configuring Third party sales process.and got the suffcient help from old posts.But i got stuck in MIGO step.While doing MIGO we have to enter PO and Delivery Note No so where to find delivery note no.?
Another confusion is, In some of the posts in community,for third party sales configuratuion MIGO is one of the step while in other similar posts there is no MIGO step instead they have shown direct MIRO after PO creation so which i should follow ?
Thanks in advance
Regards,
Vikal

Do you really just follow what others have posted and do not double check with the SAP documentation and even more important with your business needs and some logical thoughts?
In all our >750 plants is a guy who receives the material that is coming in, he compares the paperwork with the goods and then enters the receipt in SAP.
This is the normal and logical process of a receipt in your warehouse.
And now compare this with a 3rd party sales, where the goods are shipped from your vendor directly to your customer.
The warehouse guy does not get any papers from a truck driver, he can't count any goods before he could do something in SAP, he does not even know about this order. And exact this situation is the basis for the standard design: no goods receipt, just invoice.
And any deviation is made because of some special requirements (legal and country specific, or just because of an almighty finance department which can't understand that some of their requirements do not make much sense in logistics. e.g. mandatory 3way matches PO - GR - IR which is not worth the name if you force warehouse people to make theoretical receipts which physically never happened and cannot be verified.

About third party sales

I have to send 1 material to 10 customers, out of 10 customers for 3 customers have to send direct from vendor(third party sales). How to customize this scenario ?.

Use Customer Material Info Record(CMIR) for these 3 customers. Create new usage ( eg; Z3rd) . Assign this usage in CMIR.
Now, in VOV4- Item category Determination
Sales Doc type + Item Cat group + Item Usage = Item Category
SONORMZ3rd= TAS
So, whenever these customers place order for this material, this will be routed for procurement( third party sales) for rest of the customers will be normal sales

Third party sales with out hitting the FI

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