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Former Member

Third Party Processing

We have been using the Third Party Processing process, where a billable sales order is entered (item category TAS) a purchase req created, and converted into a PO, invoice verification is done, and then the billing is done . . . Sales order closed once all billing done.

Now we are being asked to use the Third Party Process but with free sales orders. Also based on the type of sales order, the GL account and Cost Center may be different.

Today when we ship a free Demo, when the delivery is goods issued it hits a finished goods account and an expense account.

Today when we do a TAS order the PO shows a Cost of Sales Account, the Invoice Verification hits the AP account and the Cost of Sale account, and the Billing doc hits the AR account and the Expense account.

What I have done so far is create a new Item Category what is similar to the Free Item Category we have been using . . . it is not relevant for pricing or billing . . . yet also similar to TAS.

When I create the order, I do get a purchase req, which is type NB with Account Assignment Category of Z. The GL account, which is a Cost of Sales account defaults . . . this must be in configuration, and it is grayed out. The cost center from the Sales Order does come into the Req.

The Third Party Process was set up by consultants 11 years ago, and we have never had to do anything to change it, so it is a new area to us. So can anyone provide steps to continue the set up of this. I am thinking if the we could change the GL to an expense account we might be closer to it, but I am not sure. Or should a new Account Assignment Catergory be created.

Any suggestions would be appreciated.

Edited by: Diane Thacker on Jul 17, 2009 4:53 PM

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 17, 2009 at 04:55 PM

    Hi Diane,

    With one of our client we have same scenario. The configuration settings of item category and schedule line category done by is is write.

    When purchase order is created , G/L account without a cost element can be assigned.

    Please let us know if this is what you are asking for.

    Ramesh

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 17, 2009 at 06:45 PM

    So it sounds like you are doing Free Third Party Order Processing, but I am not clear on what you have written.

    Are you saying it sounds like what I have done with item and scheduled line is correct? Or do you need to understand further what I have done?

    Also I think you are saying we can create a PO where we can assign a GL without a cost element . . . How is that possible? Is there a setting in configuration that allows for this situation that you can enter the GL you want?

    Also, if this is possible. Once we create the PO, and then do the Invoice Verification . . . will the sales order automatically close or is there another step to close the order . . . since no billing to close it?

    Thanks!

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