Business Process Procedure for 3rd Party ,

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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

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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

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