third party sales

[ipsit_mohapatra]

Hi all,

In 3rd party process, when it comes to MIGO what exactly the system is doing in the backend and also incase of MIRO the same. please expain me.

Thanks All in advance

[Former Member]

Dear Ipsit Mohapatra,

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 *-- Seema Dhar

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

Hope this helps you.

Do award points if you found them useful.

Regards,

Rakesh

[Sunil76]

Dear Ipsit,

In the case of third part sales..The MIGO entry is optional because when you create the PO instead of the inventory account it hits the COGS a/c.. when you do MIGO the accounting entry will be ass follows..

COGS A/C...DR XXXX

GR/IR A/C .....CR XXXX

Thus the system directly hits the COGS a/c instead of the inventory a/c as there is no inventory movement.. on the sales side there is no delivery order created and PGI takes place and on the purchase side there is no goods reciept entry..

When you do MIRO..the system generates this entry

Vendor A/c Cr XXXX

GR/IR A/C Dr XXXX

and when you raise sales invoice

System generates entry..

Customer a/c Dr...XXXX

Sales A/c Cr..XXXX

I hope this has given you some clarity about TPS..

Best regards

Sunil Nair

[Former Member]

>

> Hi all,

>

> In 3rd party process, when it comes to MIGO what exactly the system is doing in the backend and also incase of MIRO the same. please expain me.

>

> Thanks All in advance

Hi Ipsit,

In third party sales, if you see, the Vendor directly makes the delivery to the customer the customer never comes into stock of the company selling.

Say company A sells to Customer B Via Vendor C.

Stock goes directly from C to B.

Now this movement of goods internally tells the system that so much stock has been reduced (as business wise A is selling B)

to compensate for that stock MIGO is done. This happens to be a fictitious goods receipt no goods actually come in it is only for the understanding of system.

MIRO is done for posting the invoice for the amount due for the Vendor.Once the invoice is received from the vendor the invoice processor will check the invoice and the purchase order and post the same.

Hope it clarifies to some extent

Regards

Abhishek Swarup

[Former Member]

Hi

For Third party Business Scenario,ie) Your Customer is Ordering some material to you....For this requirement, you are asking your Vendor to Supply that material Directly to the Customer's Place and he gets the Acknowledgement from the Customer and he Submits the Invoice alongwith acknowledgement....

For this, If you have maintained Item category Group as BANS in Material master,Sales:/Org.data 2....then If you create Sale Order for this Material in Order Type: OR....then In Sale Order, the Item category TAS will be Triggered....

After the Sale order is saved, This Item category, TAS triggers the Sch.Line Category CS...and the PR will be created automatically with Account Assignment Category as "X" and Item category as "S"....

Then while converting this Third Party PR in to Third party PO....If you check GR Indicator in PO Item details -

---

> Delivery Tab...you can do statistical GR....It is Optional only....

ie) When you do MIGO...the GR is Statistical only....there will not be any Qty. updating or Value Updating....Because the Goods are delivered at Customer's Place....

After Delivering the Materials at Customer's Place...the Vendor Will send the Invoice with Customer's acknowledgement....then you have to post this Invoice in MIRO...

The Control here is The Sd can create Billing Document....only after Vendor's Invoice posting in MIRO only....

Reward if useful....

regards

S.Baskaran

[Former Member]

Hi,

In the case of stock materials, MIGO transaction results in debiting stock and crediting Accounts Payable. When you do MIRO (Vendor invoice processing), The accounts payable is debited and vendor account is credited.

In the case of 3 rd party materials, MIGO is statistical - means, stock is not debited. But consumption is debited and accounts payable is credited. When you do MIRO the acccounts payable is debited and vendor account is crdited.

The main difference as explained above is that 3 rd party MIGO is STATISTICAL and does not result in stock.

Additional info: there are certain settings in the sytem which will prohibit final billing on customer unless statistical GR is made.

Hope this meets you requirement.

Muraleedharan.R

[Former Member]

hi

while doing MIGO the system creates a goods movement and through MIRO we will post the invoice received by the company from the vendor