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Former Member

Third party material delivery error

I have made some third party material, but as I do MIGO then Its making the stock available in the storage location but I m not able to deliver that material to my customer

Do help me out in this

Link: [Hemant]

Edited by: Hemant Saxena on Feb 2, 2009 3:28 PM

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2 Answers

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    Former Member
    Feb 02, 2009 at 02:32 PM

    Hello Hemant,

    In the third party scenario there is no delivery involved. It is order related billing.i is the logical GR that will happen. You create an order create a PO through PR and do MIGO and then do billing.It will be an order related billing.

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    • Former Member Former Member

      Dear Hemanth,

      I am in a confusion regarding your scenario.Plz clarify as to what is your scenario. There are 2 types

      1. Thrid Party: Sales Order >PR Generation >PO Creation >MIGO >Billing.In this scenario the vendor will supply the goods to the customer directly and you just have to do the bill the end customer.There is no delivery involved from your end.Here only logical GR is there and it doesnt update your inventory.

      2. Individual Purchase Order:Sales Order >PR Generation >PO Creation >MIGO >MIRO >Delivery >Billing. Here the Vendor will suplly the goods to you directly and in turn which will update the inventory stock and then you do the outbound delivery to the end customer and then bill him.

      Hope you are clear now.

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    Former Member
    Feb 02, 2009 at 02:35 PM


    Third party sales means that material is not manufactured by us and the same is supplied to our customer from a third party vendor

    We receive the sales order from our customer

    Up on receipt of sales order or saving a purchase requestion is created automatically by the system

    Then MM department process this purchase requestion and make a PO and that is send to a vendor

    The vendor delivers the goods to our customer and he gives us the invoice

    Upon receipt of invoice from the vendor we bill our customer

    This a normal third party process

    These whole settings are controlled by item category group and item category and schedule line category

    For a third party material item category group defined in sales org data 2 tab of MMR is BANS

    The item category determined in sales order will be TAS

    The schedule line category determined in sales order will be CS

    Thre are some very important settings in item category TAS and schedule line category CS which controls these whole 3rd Party Sales

    There is another process is also practised (not so commonly) sometimes that is from vendor we take the goods to our plant and inturn we deliver to our customer

    The item category determined in this case is TAB

    the issue i think relates to this



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