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Thirdparty sales

Hello Guys..

Could anybody tell me the steps about thirdparty sales, I mean what are the settings we have take care of while doing thirdparty sales.



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6 Answers

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    Former Member
    Mar 18, 2008 at 03:10 PM


    Please refer this :

    Reward points if this helps.



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    Former Member
    Mar 18, 2008 at 08:30 PM

    hi vamshi,

    chk this link... this link will give the details about configuring third party order processing..



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    Former Member
    Mar 19, 2008 at 05:42 AM

    Third Party Process

    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


    Order Type

    Sales org, distr chnl, div


    Sold to

    PO #





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


    Order Number

    Goto Item Overview

    Item ->Schedule Item

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


    Key in the PR number


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


    Key in the PR number

    Toggle the "Assigned Purchase Requisition"


    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


    SD - 3rd party sales order Receive Goods


    PO Number

    DN Number

    Batch tab , click on classification

    Serial Numbers tab

    Date of Production

    Flag Item OK

    Check, just in case



    SD - 3rd party sales order Create Invoice


    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)


    State the baseline date

    Simulate & Post

    Invoice Number

    *Invoice blocked due to date variance

    SD - 3rd party sales order Create a delivery order


    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


    Ensure that the delivery document is correct in the


    Go to edit -> Log


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    Former Member
    Mar 19, 2008 at 05:57 AM


    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.


    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

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  • Mar 18, 2008 at 03:18 PM

    Dear vamshi

    Please check the links

    [Third-Party Order Processing|]

    [Process Flow for 3rd Party Sales|]


    G. Lakshmipathi

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    Former Member
    Mar 19, 2008 at 04:53 AM


    Thirdparty Sales order Process means Suppose customer orders a material if stock is not kept or it is not produced by the company then company wil supply material dirctly to customer through external vendor. The company will raise the invoice based on the invoice from Vendor.

    Thirdparty order process will be determined by the material type bcoz material type determines whether the material produced by internally or externally.

    Standard Item category is TAS

    Standard Item category group is BANS

    Standard schedule line category is CS.

    Cofiguration part.

    Step1; Create Purchasing Organization

    img-enterprise structure-:definition-material mgt->define purchase organization

    step2: Assign Purchase organization to Company Code

    img->enterprise structure->assignment->material mgt-> assing purchase organization to company code/pant

    step3: define purchasing group.

    std is 001

    img->material mgt-> purchasing->purchasing order->define purchasing group

    step4: Assign Item category

    sales document typeItemcategory groupUsage+ Higher level item category->Item category

    ORBANS + -> TAS

    step5: Assign Scheduline category

    item category+ MRP type -> Scheduline category

    TAS + ->CS


    step1: Create Material Master record

    using MM01

    material type should Trading Goods

    select purchasing view

    in Sales org2 item category group is BANS, purchasing view 001

    remaining columns fill based on requirement.

    • Third Party process is in two ways

    1. Third Party with shipping notification

    2. Third party without Shipping notification *

    i will explain with notification

    step: create sales order process

    TCode: VA01

    enter sold to party, ship to party, material, and order qty save it.

    Step3; Create Purchase Order

    Tcode: ME21N

    click on DOCUMENT OVERVIEW OFF button

    select VARIANT button on left side

    select the purchase requistion(first one is latest) then click on ADOPT button

    enter the purchasing org, purchasing group, company code

    enter tax number save it

    Step4: Create Goods receipt

    Tcode: MIGO

    enter the purchasing order number, click on ITEM OK, execute

    click on simulate/check then click on post

    Step5: Create Invoice verification

    Tcode: MIRO

    enter purchasing order number

    click on tax

    enter amount

    click on Simulate/check button then post


    Step6: create invoice for customer

    Tcode: VF01

    enter order number execute it.




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