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In Third party sales, Part of MM..?

Former Member
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Hi guru's

Can explain about third party sales and what is major part of work for MM in that.

1.Please send me the overall flow in Third party sales process with Transaction codes.

thanks

sap-mm

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

Third party processing is used during SD MM integration.

When customer orders, the sales order is converted to purchase order and purchase order placed to vendor delivers the goods directly to the customer. instead of delivering to Company.

1.Create MMR,VMR, CMR.

2.Create PO with item category S(Third Party).

In Delivery address tab give Customer No....Save PO.

3.When you do MIGO, the stock will not be updated, it will be delivered to Customer.

4.MIRO.

this is only from MM point.With SD billing will come into picture.

SD order->PO->MIGO->BILLING->MIRO.

Regards,

Smitha

Former Member
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Hi Mr smith

Thanks for ur immediate response.

i m creating po ME21N, goods deliver to customer, then hw i can do the MIGO in my company without goods receipt.

Can u explain me in depth with transaction code , so that i can get clear idea abt this scenario.

Who will do MIGO, how can we get Financial part from customer.

Thanks

sap-mm

Former Member
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Hi Buddy

Ideally your company should not do any GR as material is not received at your location but to comlpete the cycle PO-GR-IV you have to go for GHOST GR for completion of Purchase cycle. As soon as the end customer confirms the receipt of good you can do a Ghost GR at your end.

regards

Yogesh

Former Member
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Hi Mr yogesh

Can u send me the Step by step process about Third party sales ..

Because i dont know the full process properly in third party sales, so if u any document related to that with configuration settings, so i can gain some knowledge from ur guide.

Kindly me send me to - sap.challenge@gmail.com

thanks

sap-mm

Former Member
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Hi,

Steps.

1.create VMR,CMR,MMR.

2.Create PO--ME21n.

In Delivery adress tab enter customer name n set the indicator...Save it

3.MIGO....Do the GR.

Here the system does not ask for plant n storage locan,.In stead it shows the delivered addres of the vendor.Hence , the stock is not updated in your stock , it is sent to customer.

MiGO is done by the company.

U pay to vendor n customer pays you..

4.MIRO..

Regards,

Smiths.

Edited by: Smitha Joshi on Feb 8, 2008 10:38 AM

Former Member
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hi yogesh ,

can u tell me about GHOSTGR .

laxman

Answers (4)

Answers (4)

Former Member
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Former Member
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THIRD PARTY SCENARIO

in third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. A sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver items you would normally deliver yourself.

Process Flow

the processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally can be ordered only from third-party vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, if you manufacture your own finished products, you may also want, from time to time, to be able to order the same type of product from other vendors.

Processing Third-Party Orders in Sales

Third-party items can be created automatically by the system, depending on how your system is set. However, you can also change a standard item to a third-party item during sales processing manually.

Automatic third-party order processing:-

if a material is always delivered from one or more third-party vendors, you can specify in the material master that the material is a third-party item. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a third-party item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.

Manual third-party order processing

In the case of a material that you normally deliver yourself but occasionally need to order from a third-party vendor, you can overwrite the item category during sales order processing. For a material that you normally deliver yourself, you specify the item category group NORM in the material master.

If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The item is then processed as third-party item.

If address data for the ship-to party is changed in the sales order in third-party business transactions, the changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one already exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item.

You can only change the address data for the ship-to party in the sales order for third-party business transactions, and not in the purchase order.

Processing Third-Party Orders in Purchasing

when you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.

Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.

All changes made in the purchase order are automatically made in the sales order as well. For example, if the vendor confirms quantities and delivery dates different from those you request and enters them in the purchase order, the revised data is automatically copied into the sales order

you process third-party items by creating a normal sales order. In overview for the order, you can then overwrite the default item category (TAN in the standard system) with the special item category for third-party items: TAS

Billing Third-Party Orders

If relevance for billing indicator for the item category has been set to B (relevant for order-related billing on the basis of the order quantity) in Customizing, the system includes the order in the billing due list immediately. If, however, the indicator has been set to F (relevant to order-related billing on the basis of the invoice quantity), the system does not include the order in the billing due list until an invoice from the vendor has been received and processed by the purchasing department. In the standard system, item category TAS (third-party order processing) has been given billing-relevance indicator F.

In the first case, the third-party order is considered to be completely billed only when the invoiced quantity equals the order quantity of the sales order item. In the second case, each time a vendor invoice is received, a customer invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the next vendor invoice is received.

If you have activated billing-relevance indicator F for item categories in Customizing, billing can refer to the goods receipt quantity instead of the incoming invoice quantity.

You can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in Customizing for copying control for billing at item level.

FOR YOUR PROCESS Individual Purchase Orders WELL GIVE THE RIGHT SOLUTION

Individual purchase orders are used when your customer orders goods from you that are not in stock and must be ordered from one or more external vendors.

Process Flow

During sales order entry, the system automatically creates a purchase requisition item. The purchasing department creates a purchase order based on the requisition and the vendor ships the goods directly to you (unlike third party order processing, where the vendor ships directly to your customer). You then ship the goods to your customer. While the goods are part of your inventory, you manage them as part of the sales order stock. Sales order stock consists of stock that is assigned to specific sales orders and cannot be used for other purposes.

Process Flow for 3rd Party Sales

Customize the third party sales in summary:

Prerequisites for 3rd party sales,

Purchasing org,

purchasing group,

assign the Purchase org to company code

assign Purchase org to plant,

should not maintain the stock in material, it should be trading goods,

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 *--

i think this will be helpful to you

Former Member
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Hi Mr subha

Thanks for response

I understood, all process.. if u have any materials ppt or pdf document related to third party sales with SCREEN SHOTS

PLEASE SEND ME to my id

Thanks

sap-mm

Former Member
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Hi Buddy

Third party sales is something like drop shipment, Where:

1) Customer X ask for some material/service from Company A.

2) Company A is not having that material available so ask for it from some other sister company or from an external vendor B.

3) Delivery from other company/vendor B happens and shipped directly to the customer X.

SAP Process: Customer X will create a SO to company A, company A creates a PO for Vendor/Company B. SO will be created in Company B, delivery , pick, pack and shipment to Customer X. In SO created in company/vendor B should have ship to party as Customer X.

Regards

Yogesh

Former Member
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Creation of STO..

MIGO & MIRO

other part will be handled by FI & SD