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    Business Process Procedure for standard third party sales

    By Gopal Reddy, Wyvil Systems Inc

    1. Business Scenario

    a. Business Process Steps

    a. Create Third Party Sales Order (VA01) { Purchase requisition will be

    automatically generated by the system due to the following configurations Theschedule line category for third party sales order is CS. For the schedule linecategory CS in Define schedule line category, the Order type is definedas NB which stands forpurchase requisition standard, Item category isdefined as 5 which is athird party item and Account AssignmentCategory is defined as 1 which stands forthird Party. This triggers thegeneration of purchase requisition automatically by the system.}

    b. Create purchase order with reference to Purchase Requisition (ME21N)

    c. Create Invoice Verification for Vendor (MIRO) w.r.t Purchase Order

    d. Generate billing document to the customer (VF01) w.r.t 3 rd party sales order.

    2. Inputs/Pre Requisitions

    a. Organization Data

    Sales organization 3000

    Purchase Organization 3000

    Distribution Channel01

    Division 00

    Plant 3000

    Storage Location 0002

    Ware house Number 001

    b. Master Data

    Material {Create a Trading Material (material type: HAWA), In Sales Organization

    2 view assign Item Category Group as BANS, in MRP2 view make sure that the

    procurement type is F External Procurement, there should be no warehouserelated views, assign MRP Type as ND No Planning Material Number usedin this document: 4540

    Customer200193

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    Vendor --- 400036 (need to create a Vendor if doesnt have)

    Condition record for price, PR00 @100.00

    c. SPRO Configurations

    Define the item category { TAS Third party Item, Billing Relevance F Order

    related Billing Doc- status according to invoice quantity}

    Define Item Category Group{ BANSThird Party Item}

    Assign item Categories { OR BANS TAS}

    Define the Schedule line categories{ CS Leg, Order TYPE NB (Purchase

    Requisition Standard), Item Category5 (Third Party), Account Assignment Cat1(Third- Party)}

    Assign Schedule Line Category--- { TAS CS}

    SPRO Configurations check for Third Party Sales

    1. Configurations list for third party sales in SPRO settings

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    2. Click on Define the item category and define TAS as Third party Item. Click on Display details

    icon.

    3. Check whether the Billing Relevance is defined as F {Order related Billing Doc- status according toinvoice quantity}. Click on logoff button.

    4. Click on Define Item Category Group BANSThird Party Item. Click on Logoff icon

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    5. Click on Assign item Categories and assign standard order type OR to third party item category groupBANS and item category TAS. Click on Logoff Icon

    6. Click on Define the Schedule line categories and define the schedule line category as CS Leg

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    7. Click on display details icon and define Order TYPE as NB (Purchase Requisition Standard), ItemCategory as 5 (Third Party), Account Assignment Cat as 1 (Third- Party)

    8. Click on Assign Schedule Line Categories and assign item category TAS to schedule line category CS

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    1. Create Material as trading goods and under sales organization 2 select the item category group asBANS.

    2. Under MRP1 view, make sure to select MRP type is selected as ND-> no planning.

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    3. Under MRP 2, make sure procurement type is selected as F External Procurement.

    Business Process Steps

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    1. Create 3rd party sales Order (initial screen) T-Code VA01

    2. Sales order overview screen. Enter the sold to party, material, quantity and storage location and hitenter.

    3. Sales Order: Purchase Order Scheduling Screen. Click on continue

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    4. Schedule line for the third party standard sales order

    4. Pricing condition maintained for the material

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    5. Check for completion and save the document.

    6. Enter TCode ME5A in the command bar and hit enter.

    List of purchase requisitions screen. Enter material and plant

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    7. Click on the purchase requisition number.

    8. Purchase requisition for the standard third party sales order created. Double click on PR no to check thesource of supply and other details > Back.

    9. Enter TCode ME21N in the command bar and enter.

    Create purchase order w.r.t PR.

    Click on the document overview screen at the top left corner of the screen.

    Click on the variants icon and Select the purchase requisition and click on adopt icon under thedocument overview.

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    10.Check the purchase Order tabs such invoice etc.. and save the document.

    11.Enter MIRO in the command bar to create Invoice verification for vendor. Enter the company code and hitenter.

    12.Enter the invoice date, amount, and at the item level, change the tax code to I0 (A/P sales tax exempt),and jurisdiction code to IL0000000 and click on Simulate.

    13.Check the GL accounts.

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    14. Click on Save/Post

    15. Enter VF01 to create billing document for the customer and hit enter.

    16. Overview of the billing items.

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    17 Save the billing document

    Document Flow of the Standard Third Party Sales Scenario

    Third party sales processing does not work like that actually..

    In fact, a third party sales processing is required because your company does not have the required

    goods to sell to the customer, so that's why a third party vendor is required to supply (anddeliver/ship) the goods directly to your customer and then bill your company.

    The standard process flow would work this way:

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    Create Third Party Sales Order (VA01/VA03 - retrieve PR num)* --> Create Purchase Order (Display

    list of PR with ME57 and convert to PO with ME58) --> Approval/Release of PO (if required - ME28)

    --> Invoice Verification (MIRO)**

    --> Billing (VF01/vf04)

    The PR number is automatically created in this step.

    **The incoming invoice from the vendor updates the billing quantity, so that the customer-billing

    document can only be created after entering the invoice from the vendor.

    So, in this situation, you do not carry out a MIGO in your company process.

    Configuration:

    1. Create your Account Assignment Category required for Purchasing.

    2. Create your Item Categories for Purchasing Doc.

    3. Assign to combination of the relevant Item Categories for Purchasing Doc.

    4. Create your relevant 3rd Party Sales Doc Ty & Assign the Item Categories for SD.

    5. Maintain the copy control for your Sales Doc (header & item).

    6. Define and maintain your Transfer Requirement config - Define the Class --> Define the

    Requirement --> Assign the Determination.

    7. Maintain the SD Schedule Line Categories control - here u assign the Acct. Assignment Cat

    similar to your Purchasing and determine the PR type you want to trigger (i.e. ZNB).

    8. Assign the Schedule Line Categories to Item Categories.

    9. Maintain copy control for Schedule Lines.

    10. Configure your Billing Doc - it must be Order-related Billing.

    11. Maintain copy control for Billing: i.e, OR --> F2 (if you did a Copy As.. function from the std SAP

    docs, the copy control should already be in place).

    As for the "Billing Quantity" indicator in the Billing Copy Control config - You can consider indicator

    E, F and I for third party transactions, depending on the requirement of the your company.

    Process Flow for 3rd Party Sales

    Customize the third party sales in summary:

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    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 *-- Seema Dhar

    SD - 3rd party sales order Create Sales Order

    VA01

    Order Type

    Sales org, distr chnl, div

    Enter

    Sold to

    PO #

    Material

    Quantity

    EnterSave

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

    order

    VA01

    Order Number

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    Goto Item Overview

    Item ->Schedule Item

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

    ME52N

    Key in the PR numberSave

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

    ME57

    Key in the PR number

    Toggle the "Assigned Purchase Requisition"

    Execute

    Check the box next to the material

    Assign Automatically button

    Click on "Assignments" buttonClick on "Process assignment"

    The "Process Assignment Create PO" box , enter

    Drag the PR and drop in the shopping basket

    Save

    SD - 3rd party sales order Receive Goods

    MIGO_GR

    PO Number

    DN Number

    Batch tab , click on classification

    Serial Numbers tab

    Date of Production

    Flag Item OK

    Check, just in case

    Post

    Save

    SD - 3rd party sales order Create Invoice

    MIRO

    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)

    Amount

    State the baseline date

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    Simulate & Post

    Invoice Number

    *Invoice blocked due to date variance

    SD - 3rd party sales order Create a delivery order

    VL01NIn 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

    VF01

    Ensure that the delivery document is correct in the

    Enter

    Go to edit -> Log

    Save

    SAP SD Tips by: Liza Rao

    Fast Links:

    Re: credit management configuration in Third party sales

    Anand NJul 20, 2011 9:27 AM (in response to S K)

    Hi...For Third Party, since there is no Delivery and PGI, the block can be at Billing.however the total outstanding value from the customer at the time of billing along withthe days as set in the credit limit shall be basis of blocking.Config Steps:u2022 Assigned the credit control area to the company code

    Assign Permitted Credit Control Area to Company Code Credit Control Account

    Credit management Accounts Receivable and Accounts Payable Financial

    Accounting (New)u2022 Assign Sale Document and Delivery Document, The credit limit check for theselected sales document type is set to automatic control.

    http://scn.sap.com/message/10463287#10463287http://scn.sap.com/people/anand.navalehttp://scn.sap.com/thread/1998540#10458707http://scn.sap.com/people/anand.navalehttp://scn.sap.com/message/10463287#10463287http://scn.sap.com/people/anand.navalehttp://scn.sap.com/thread/1998540#10458707
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    Credit limit check for order typesAssign Sales Documents and Delivery Document

    Credit Management Credit management / Risk management Basic Functions

    Sales and Distribution

    u2022 Assigning Risk Category to Credit Control Area

    Define Risk Categories Credit Control Account Credit management Accounts

    Receivable and Account Payable Financial Accounting (New)

    u2022 Defining Automatic Credit Control

    Define Automatic Credit Control Integration with Sales and Distribution Integration

    with Accounts Receivable Accounting and Sales and Distribution Credit Management

    Financial Supply Chain Managemento Report Abuse

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    o Re: credit management configuration in Third party sales

    SAP SDJul 20, 2011 9:32 AM (in response to Anand N)

    Hi Anand,Credit Management is not possible to Block in Billing Level . It is possible in Sale order ,Delivery and PGI levelRegards,

    Prasanna

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    Re: credit management configuration in Third party sales

    S KJan 16, 2012 6:31 PM (in response to S K)

    Dear All,In Third Party Sales, Purchase Requisition and Purchase Order should not create when Isave Sale Order, When I release Order then only PR, PO should create.

    http://scn.sap.com/message-abuse!input.jspa?objectID=10463287&objectType=2http://scn.sap.com/thread/1998540http://scn.sap.com/thread/1998540http://scn.sap.com/message/10463316#10463316http://scn.sap.com/people/prasanna.kumar4http://scn.sap.com/thread/1998540#10463287http://scn.sap.com/message-abuse!input.jspa?objectID=10463316&objectType=2http://scn.sap.com/message-abuse!input.jspa?objectID=10463316&objectType=2http://scn.sap.com/thread/1998540http://scn.sap.com/thread/1998540http://scn.sap.com/thread/1998540http://scn.sap.com/message/10994554#10994554http://scn.sap.com/people/sudarshan.khttp://scn.sap.com/thread/1998540#10458707http://scn.sap.com/people/sudarshan.khttp://scn.sap.com/people/prasanna.kumar4http://scn.sap.com/message-abuse!input.jspa?objectID=10463287&objectType=2http://scn.sap.com/thread/1998540http://scn.sap.com/thread/1998540http://scn.sap.com/message/10463316#10463316http://scn.sap.com/people/prasanna.kumar4http://scn.sap.com/thread/1998540#10463287http://scn.sap.com/message-abuse!input.jspa?objectID=10463316&objectType=2http://scn.sap.com/thread/1998540http://scn.sap.com/thread/1998540http://scn.sap.com/message/10994554#10994554http://scn.sap.com/people/sudarshan.khttp://scn.sap.com/thread/1998540#10458707
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    Request you where is the configuration setting to block Purchase Requisition.RegardsKS

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    o Correct AnswerRe: credit management configuration in Thirdparty sales

    Shiva RamJan 16, 2012 6:48 PM (in response to S K)

    In t.code OVB8, maintain routine 102 under RNO column and then check again. Byadding this routine, when the sales order is in credit block, the system will not allowcreation of purchase req.Regards,

    http://scn.sap.com/message-abuse!input.jspa?objectID=10994554&objectType=2http://scn.sap.com/thread/1998540http://scn.sap.com/thread/1998540http://scn.sap.com/message/10994590#10994590http://scn.sap.com/message/10994590#10994590http://scn.sap.com/people/sivakumar.ramakrishnanhttp://scn.sap.com/thread/1998540#10994554http://scn.sap.com/people/sivakumar.ramakrishnanhttp://scn.sap.com/message-abuse!input.jspa?objectID=10994554&objectType=2http://scn.sap.com/thread/1998540http://scn.sap.com/thread/1998540http://scn.sap.com/message/10994590#10994590http://scn.sap.com/message/10994590#10994590http://scn.sap.com/people/sivakumar.ramakrishnanhttp://scn.sap.com/thread/1998540#10994554