Why req MIGO and MIRO in third party scenario

Question

Hello All,
In third party scenario why we req to do MIGO in ref to PO.
In 3rd party we create sales order with item cat TAS.
We got the PR
with ref to PR we create PO.
then we do MIGO  and MIRO
also If vendor is delivering the goods why we do the Delivery and PGI and then Invoice
Why not Invoice with ref to sales order.
regards,
abhijit

Answer 1

Hi
In Third Party sales, the Item category is TAS ,if the Vendor directly supplies to the end customer.
In Item category TAS, "Billing Relevance" is "F", i,e. Order related billing as per invoice quantity.
If the Item category of the Third Party item is TAS, then Schedule line category is CS in standard. If you will go to CS, you will find , the "Delivery relevance" field is blank and there is no "Goods movement" also. That means no Delivery takes place against the Sales order, so no goods issue.
This clearly indicates, we do not create any Delivery and no goods receipt takes place in third party sales process, when the vendor directly sends the goods to the customer.
Once the goods are send to the end customer, Vendor creates an invoice and sends to the ordering company. Now, ordering company goes for Invoice verification ,what the vendor has sent to him. We only go for MIRO here and not MIGO.
After that, the ordering company, creates the Customer invoice with reference to the Sales order(placed by its customer) and sends it to its customer.
Complete process:
Once the order is received from the custome(say ABC)r, the company (say XYZ) creates a Sales order ---> Purchase requisition is automatically triggered from the sales order -
> from this Purch requisition a PO is created for the vendor -
> aginst the PO, Vendor delivers the goods to the customer ABC and charge the ordering company,sends invoice for the same to the ordering company XYZ -
> Ordering company XYZ does Vendor's invoice verification and creates a Customer invoice with reference to customer's(ABC) order and sends to the customer ABC.
Some times Vendor sends the goods to the ordering company and then ordering company delivers the goods to its customer.
Vendor does not deliver directly to the end customer in this case.
In this case Item category is TAB and Schedule line category is CB.
Here, Billing relevance is "A" - (Delivery related billing) in the Item category TAB, that means here Delivery takes place and Billing is created with reference to the Delivery created to the customer.
In Schedule line category CB, you will find, 'Delivery relevance" field is activated and there is a movement type "601".
So, Delivery and goods issue both takes place here.
Here we go for both MIGO and MIRO.