Drop Ship & Third Party

[Former Member]

When a client says they do drop shipments, does this mean that I will have to configure a third party sale? If not, what options are available to configure this in SAP?

[Former Member · Accepted solution]

<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

<b>SD - 3rd party sales order Create Sales Order</b>

VA01

Order Type

Sales org, distr chnl, div

Enter

Sold to

PO #

Material

Quantity

Enter

Save

<b>

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

VA01

Order Number

Goto Item Overview

Item ->Schedule Item

<b>SD - 3rd party sales order View the PR that is created</b>

ME52N

Key in the PR number

Save

<b>SD - 3rd party sales order Assign the PR to the vendor and create PO</b>

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

<b>SD - 3rd party sales order Receive Goods</b>

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

<b>SD - 3rd party sales order Create Invoice</b>

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

<b>SD - 3rd party sales order Create a delivery order</b>

VL01N

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

Go to "picking" tab

State the qty and save

<b>SD - 3rd party sales order Create a billing document</b>

VF01

Ensure that the delivery document is correct in the

Enter

Go to edit -> Log

Save

[Former Member]

To make one of the long answers short(er) There is a standard SAP process for Third Party Drop Ship.

In the order you change (or configure it to automatically set) item category to TAS

The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor.

The vendor sends a shipping notification to the Customer. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document is only possible after entering the invoice from the vendor.

It is pretty standard, but gets a little funky when the customer wants to "not" accept the goods and return them.

You should be able to setup some master data in DEV and play around with this

let me know if that helps

[Former Member]

if its a drop shipment that means you need to configure third party sales process.

The goods will be deliverd by the manufacturer to your customer. your process will be Sales order- PR- PO - Vendor Invoice receipt - Billing.

You wont do Goods receipt in this case. There is no other process for drop shipmnet, you need to configure third party sales process.

Thanks

[Former Member]

hi

A process whereby distributor/resellers create a sales order and have the manufacturer/supplier ship the material directly to the end customer.

The manufacturer/supplier then bills the distributor/resellers who, in turn, bill their resale customer. The returns from a drop shipment go directly to the distributor/reseller.

[Former Member]

hi

I think there is no need of third party.

send goods to the customer as "ship to party"

invoice to saold to party

[Former Member]

My client will not be able to send the goods to the customer because they dont have the stock in their warehouse. The stock is in the manufacturer warehouse.

[Former Member]

then thid party is the answer