Third party

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hi gurus

this is srinivas

i have a doubght on third party can u solve this

u will be get full rewarded points

pls go through

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.

<u><b>here i have a doubt if he send the goods to X , X will deliver the goods so X si create the delivery document here, but here it is not done. Z directly send the goods to the Y so what will happend in delivery stage in X.</b></u>

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.

Advanced Thanks

srinivask