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hi guys!

hi guys,

in "Third party sales process", what are the areas i need to maintain output tax settings?

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3 Answers

  • Posted on Jul 04, 2007 at 11:25 AM

    You need to maintain output tax for the sales order which the party creates and the invoice which is send to the customer.

    For the invoice send by the vendor to the sales organisation, the input tax should be configured.

    Reward points .

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 04, 2007 at 11:37 AM

    <u><i><b>Process Flow for 3rd Party Sales</b></i></u>

    Customize the third party sales in summary:

    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

    SD - 3rd party sales order Create Sales Order

    VA01

    Order Type

    Sales org, distr chnl, div

    Enter

    Sold to

    PO #

    Material

    Quantity

    Enter

    Save

    SD - 3rd party sales order View the PR that is created with a third party sales order

    VA01

    Order Number

    Goto Item Overview

    Item ->Schedule Item

    SD - 3rd party sales order View the PR that is created

    ME52N

    Key in the PR number

    Save

    SD - 3rd party sales order Assign the PR to the vendor and create PO

    ME57

    Key in the PR number

    Toggle the "Assigned Purchase Requisition"

    Execute

    Check the box next to the material

    Assign Automatically button

    Click on "Assignments" button

    Click on "Process assignment"

    The "Process Assignment Create PO" box , enter

    Drag the PR and drop in the shopping basket

    Save

    SD - 3rd party sales order Receive Goods

    MIGO_GR

    PO Number

    DN Number

    Batch tab , click on classification

    Serial Numbers tab

    Date of Production

    Flag Item OK

    Check, just in case

    Post

    Save

    SD - 3rd party sales order Create Invoice

    MIRO

    Invoice Date

    Look for the PO , state the vendor and the Material

    Check the box

    Clilck on "Copy"

    Purchase Order Number (bottom half of the screen)

    Amount

    State the baseline date

    Simulate & Post

    Invoice Number

    *Invoice blocked due to date variance

    SD - 3rd party sales order Create a delivery order

    VL01N

    In the order screen , go to the menu Sales Document , select "Deliver"

    Go to "picking" tab

    State the qty and save

    SD - 3rd party sales order Create a billing document

    VF01

    Ensure that the delivery document is correct in the

    Enter

    Go to edit -> Log

    Save

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 04, 2007 at 11:43 AM

    Dear Vamshi,

    <b>Third-Party Order Processing with Shipping Notification:</b>

    This SAP best practice supports passing a customer order to a third-party vendor, who then ships the goods directly to the customer, bills you, and sends you a shipping notification. The shipping notification received is entered as a dummy goods receipt in consumption. This approach allows you to create the customer invoice before you receive the incoming invoice from the vendor.

    The following functions are provided to support the Third Party With Shipping Notification:

    <b>Order</b>

    When the order is created, the specification of material numbers, quantity and conditions takes place at item level. As the material is not available on stock, a purchase requisition is created directly within the sales order.

    <b>Purchase Order Processing</b>

    The purchase requisition can already be automatically assigned during creation. If not, it is possible to assign the purchase requisition manually. The purchase order is created with reference to the purchase requisition. Quantity and material are transferred from the sales order. The purchase order price can also now be determined via the condition records.

    <b>Shipping Notification</b>

    When the vendor has sent the material to the customer, they will normally send you a shipping notification, which, amongst other things, contains the exact quantity of material sent. You have the possibility to enter this shipping notification into the system in the form of a dummy goods receipt. It will be posted directly in consumption so that no stocks are created. The quantity of goods received then updates the quantity to be invoiced in the sales order. Therefore, it is possible to create the customer invoice before you receive the incoming invoice from the vendor.

    <b>Billing Documents</b>

    The billing documents are created on the basis of the order. Since the vendor might not deliver the exact quantity ordered, quantity adjustment takes place via the shipping notification.

    <b>Vendor Invoice Verification</b>

    The vendor invoice verification can take place after billing. The variance in purchasing can be updated in Controlling using retroactive billing.

    <b>Controlling</b>

    The revenue and costs will be posted to CO-PA using the billing document.

    <b>Third-Party Order Processing Without Shipping Notification:</b>

    This SAP best practice supports passing a customer order to a third-party vendor, who then ships the goods directly to the customer and bills you. The vendor does not send a shipping notification. The incoming invoice from the vendor updates the billing quantity, so that you can create the customer-billing document only after entering the invoice from the vendor.

    The following functions are provided to support Third Party Without Shipping Notification building block:

    <b>Order:</b>

    When the order is created, the specification of material numbers, quantity and conditions takes place at the item level. As the material is not available on stock, a purchase requisition is created directly within the sales order.

    <b>Purchase Order Processing:</b>

    The purchase requisition can be automatically assigned during creation. If this is not the case, it is possible to assign the purchase requisition manually. The purchase order is created with reference to the purchase requisition. The amount and the type of material are transferred from the sales order. The purchase order price can be determined via the condition records.

    <b>Vendor Invoice Verification:</b>

    The vendor invoice verification is to be performed before customer billing. The quantity of the invoice updates the quantity to be invoiced in the sales order.

    <b>Billing Documents:</b>

    The billing documents created are based on the sales order. Since the vendor might not deliver the exact quantity ordered, quantity adjustment takes place via the vendor's invoice.

    <b>Controlling:</b>

    The revenue and costs will be posted to CO-PA via the billing document

    http://www.sap-img.com/sap-sd/process-flow-for-3rd-party-sales.htm

    Customize the third party sales in summary:

    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

    SD - 3rd party sales order Create Sales Order

    VA01

    Order Type

    Sales org, distr chnl, div

    Enter

    Sold to

    PO #

    Material

    Quantity

    Enter

    Save

    SD - 3rd party sales order View the PR that is created with a third party sales order

    VA01

    Order Number

    Goto Item Overview

    Item ->Schedule Item

    SD - 3rd party sales order View the PR that is created

    ME52N

    Key in the PR number

    Save

    SD - 3rd party sales order Assign the PR to the vendor and create PO

    ME57

    Key in the PR number

    Toggle the "Assigned Purchase Requisition"

    Execute

    Check the box next to the material

    Assign Automatically button

    Click on "Assignments" button

    Click on "Process assignment"

    The "Process Assignment Create PO" box , enter

    Drag the PR and drop in the shopping basket

    Save

    SD - 3rd party sales order Receive Goods

    MIGO_GR

    PO Number

    DN Number

    Batch tab , click on classification

    Serial Numbers tab

    Date of Production

    Flag Item OK

    Check, just in case

    Post

    Save

    SD - 3rd party sales order Create Invoice

    MIRO

    Invoice Date

    Look for the PO , state the vendor and the Material

    Check the box

    Clilck on "Copy"

    Purchase Order Number (bottom half of the screen)

    Amount

    State the baseline date

    Simulate & Post

    Invoice Number

    *Invoice blocked due to date variance

    SD - 3rd party sales order Create a delivery order

    VL01N

    In the order screen , go to the menu Sales Document , select "Deliver"

    Go to "picking" tab

    State the qty and save

    SD - 3rd party sales order Create a billing document

    VF01

    Ensure that the delivery document is correct in the

    Enter

    Go to edit -> Log

    Save

    http://www.sap-basis-abap.com/sd/third-party-order-processing.htm

    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.

    Hope this is helpful.

    Regards,

    Naveen.

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