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How to do Order to Cash Service - Third Party order Processing Variant configuration?


I have tried testing the Order to Cash Service (Third Party Processing) Variant business scenario process in the system. While perform the testing I faced an issue. I created a sales order and in the fulfillment I choose it as External and assigned supplier to it. When I released the sales order the purchase request/order is not getting created as like drop shipment process of Material. I cannot find any proper documentation for this. Do I need to perform any additional configuration for this or how the system works?



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3 Answers

  • Best Answer
    May 24, 2017 at 04:08 AM

    Hi Karthick,

    The system creates automatic purchase order for services only when there is a relevant service order in the picture. You can refer the help document titled "Third-Party Field Service and Repair". The system will create automatic purchase order from sales orders when there are To-Stock items involved and are delivered from the supplier. The above mentioned help document explains in detail how the system will create a purchase order when a service order is created and released for execution. If you still want to referance a sales order and not a service order to the purchase order then you will have to create a purchase order and assign the sales order manually to the item from the Account Assignment sub-tab.

    I hope this helps.



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    • Former Member

      Dear Anand,

      Thanks for the information. I also found something in the document titled "Service". So, in Service scenario, we can perform Third Party processing directly for Field service and repair variant scenario only not for Order to Cash Service Third Party it seems. I have highlighted my findings below (bold & Italic)

      Order-to-Cash (Services) with Third-Party Execution

      This scenario is a variant of the Order-to-Cash (Services) scenario. In the main scenario, service execution is handled by an internal workforce, whereas in this variant the service is executed by an external supplier. This scenario is relevant for service providers who have partially or completely outsourced their field service organization, or who occasionally outsource due to capacity shortages. In addition to functions in the main scenario, with this variant you can:

      • Create a purchasing contract (for a long-term relationship with a partner or supplier)
      • Create a shopping cart and/or a purchase order (use case: capacity shortages) for procuring a third-party resource (service agent) from an external supplier The purchase order is directly assigned/posted to the corresponding sales order item. Such a purchase order is not required for the long-term relationship use case, as the supplier invoice can be directly created in relation to the purchasing contract.
      • Create a goods and service acknowledgement after the service agent has performed the service
      • Create a supplier invoice related to the purchase order (use case: capacity shortage) or related to the purchasing contract

        The accounting assignment to the sales order item is copied from the predecessor document and can be overwritten in the invoice. Costs resulting from this supplier invoice are posted to the sales order within Financial Accounting (third-party costs).


      Karthick V

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    Former Member
    May 22, 2017 at 01:20 PM


    Help me in understanding your problem:

    1. Variant Material: is it a configurable material( when you enter that material in the Sales order; you specify its choices); or its a variant material ( a subset of configurable material whose choices are fixed in the material master ).

    2. Is your MRP on..?

    3. What is the strategy Group you are using..? Can you share MRP 1,2,3 views..?



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  • May 23, 2017 at 03:49 PM

    Hi Karthick,

    This would be a good place to start:≺of=X

    (Replace XXXXXX with the appropriate tenant id).

    There is some Business Configuration that needs to be done, and once that has been setup, you also need to setup rules for the automated creation of POs in the Purchase Requests and Orders WoC.

    ByD will also need a way to determine Supplier and Purchase price for the materials you want to sell in this manner: either (supplier) price lists and/or sourcing contracts.

    With all that in place you will have automatically created PO's to your Suppliers.

    Confirming delivery with a Third-Party Delivery Notification will generate Customer Invoice Requests.

    Hope this gets you started.



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