Third Party Sales Order Processing in SAP SD

                 In Business some Materials may be procured from External Vendors or some Materials may be purchased from External Vendors as a Traded Products.

              Example: Harshini Industries (Company) accepts the sales order of Vasanthi Pte Ltd (customer) and asked  Suma Industries (third party/Vendor) to deliver the goods and bills Harshini Industries (Company). Subsequently Harshini Industries raise the invoice to the Vasanthi Pte Ltd (customer).

                   

              To Procured or Purchased from External Vendors business has to raise “Purchase Requisition”. With reference to Purchase Requisition Business has to raise “Purchase Order”. Once the Purchase Order sent to the vendor, vendor raises “Sales Order” and initiate outbound delivery. With reference to this Inbound Delivery business has to post “Goods Receipt”. With reference to Goods Receipt business has to verify “Invoice”. With reference to Invoice business makes “Vendor Payment”.

Third Party Sales: In third party sales vendor directly delivers the goods to the customer and Invoice to be raised with reference to this outbound delivery in favor of Business.

Individual Purchase Order: In Individual Purchase Order vendor delivers the goods to the business and business in turn delivers the goods to the customer.

Configuration Settings for Third Party Sales Order:

Create Material Master with material type to be selected as Trading goods and Item category group is BANS in sales: Sales org 2 tab and Procurement type to marked as F in MRP 2 Tab.

Maintain Item Categories in VOV7 of TAS

TA + BANS + NIL + NIL = TAS

Billing relevance: F – Order Related Billing Document – Status according to Invoice Qty.

                If Purchase Requisition raised for 1000 items, Purchase Order raised for 1000 items, but goods, delivery carried out for 750 items by the vendor. Then the Purchasing department confirms Invoice Qty then system carried out billing process for 750 items, billing document status updated according to Invoice Qty.

Billing relevance: B – Relevant for Order related billing status according to order Qty. When the business wants to raise an invoice based on Purchase Order Qty billing relevance should be “B” 

Pricing – X

VOV6 of CS

CS: This is a standard schedule line category is provided by SAP for Third Party Sales.
CS triggers purchase requisition automatically in the background when saves the sales order.

Movement Type – NIL

Order Type: NB – Due to Assignment of Order type NB system automatically triggers creation of  purchase Requisition for the line item in the Sales Order.

Item Category: 5 – Third Party

Account Assignment: 1 – Third Party

Uncheck Item Relevant for Delivery

Uncheck Purchase Requisition delivery

Uncheck Transfer of Requirement (TOR)

Uncheck Availability Check (ATP)

Go to XK01 and Created Vendor Number.

Vendor Number - External

Company Code – 1000

Purchase Organization – 1000

Account Group – 1000

Create Customer Master

Go to VA01 and raise the Sales Order.

Item Category BANS

Schedule Line Category – CS

Save it.

Go to VA02 check Schedule Lines and note down Purchase Requisition Number created by the system.

Go to ME21N and raise standard Purchase Order (NB) with reference to this Purchase Requisition, then system copy the data from Purchase Requisition.

Go to MIGO – Goods Receipts

Specify Purchase Order Number Check Item OK and click on Post Document.

Go to MIRO / Invoice Verification,

Specify the Purchase Order Number in P O Reference Tab and Specify Invoice Date,

Invoice Amount under Basic Data Tab.

Press Enter and check the balance. The Balance should be ZERO.

Go to VF01 and raise Invoices with reference to the Sales Order.

Save it and check the document flow.