third party sales process

8/10/2019 Third Party Sales Process

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in third-party order processing, your company does not deliver the items requested by a customer. Instead, you

pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. A

sales order may consist partly or wholly of third-party items. Occasionally, you may need to let a vendor deliver

items you would normally deliver yourself.

Process Flow

the processing of third-party orders is controlled via material types. aterial types define whether a material is

produced only internally can be ordered only from third-party vendors, or whether both are possible. For

e!ample, a material that is defined as a trading good can only be ordered from a third-party vendor. "owever, if

you manufacture your own finished products, you may also want, from time to time, to be able to order the same

type of product from other vendors.

Processing #hird-Party Orders in $ales

#hird-party items can be created automatically by the system, depending on how your system is set. "owever,

you can also change a standard item to a third-party item during sales processing manually.

Automatic third-party order processing%-

if a material is always delivered from one or more third-party vendors, you can specify in the material master that

the material is a third-party item. &uring subsequent sales order processing, the system automatically determines

the appropriate item category for a third-party item% #A$. #o specify a material as a third-party item, enter 'A($

in the Item category group field in the $ales ) screen of the material master record.

anual third-party order processing

In the case of a material that you normally deliver yourself but occasionally need to order from a third-party

vendor, you can overwrite the item category during sales order processing. For a material that you normally

deliver yourself, you specify the item category group (O* in the material master.

If, as an e!ception, you use a third-party material, change the entry #A( to #A$ in the It+a field when processing

the sales document. #he item is then processed as third-party item.

If address data for the ship-to party is changed in the sales order in third-party business transactions, the

changed data will automatically be passed on to purchase requisition and also to the purchase order ,if one

already e!ists. In the purchase order, you can display the address data for the ship-to party in the attributes for

the item.

ou can only change the address data for the ship-to party in the sales order for third-party business

transactions, and not in the purchase order.

Processing #hird-Party Orders in Purchasing

when you save a sales order that contains one or more third-party items, the system automatically creates a

purchase requisition in Purchasing. ach third-party item in a sales order automatically generates a

corresponding purchase requisition item. &uring creation of the requisition, the system automatically determines

a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a

purchase requisition item for each schedule line.

Purchase orders are created from purchase requisitions in the usual way. For more information about creating

purchase orders, see the Purchasing documentation. &uring creation of the purchase order, the system

automatically copies the delivery address of your customer from the corresponding sales order. In a sales order,

you can enter purchase order te!ts for each third-party item. hen you create the corresponding purchase order,

the te!ts are automatically copied into the purchase order. #he number of the purchase order appears in thedocument flow information of the sales order.



All changes made in the purchase order are automatically made in the sales order as well. For e!ample, if the

vendor confirms quantities and delivery dates different from those you request and enters them in the purchase

order, the revised data is automatically copied into the sales order

you process third-party items by creating a normal sales order. In overview for the order, you can then overwrite

the default item category /#A( in the standard system0 with the special item category for third-party items% #A$

'illing #hird-Party OrdersIf relevance for billing indicator for the item category has been set to ' /relevant for order-related billing on the

basis of the order quantity0 in +ustomi1ing, the system includes the order in the billing due list immediately. If,

however, the indicator has been set to F /relevant to order-related billing on the basis of the invoice quantity0, the

system does not include the order in the billing due list until an invoice from the vendor has been received and

processed by the purchasing department. In the standard system, item category #A$ /third-party order

processing0 has been given billing-relevance indicator F.

In the first case, the third-party order is considered to be completely billed only when the invoiced quantity equals

the order quantity of the sales order item. In the second case, each time a vendor invoice is received, a customer

invoice is created for the quantity in the vendor invoice and the order is considered to be fully invoiced until the

ne!t vendor invoice is received.

If you have activated billing-relevance indicator F for item categories in +ustomi1ing, billing can refer to the goods

receipt quantity instead of the incoming invoice quantity.

ou can control whether the invoice receipt quantity or the quantity of goods received is relevant for billing in

+ustomi1ing for copying control for billing at item level.

FO* O2* P*O+$$ Individual Purchase Orders 33 4I5 #" *I4"# $O32#IO(

Individual purchase orders are used when your customer orders goods from you that are not in stoc6 and must

be ordered from one or more e!ternal vendors.

Process Flow

&uring sales order entry, the system automatically creates a purchase requisition item. #he purchasing

department creates a purchase order based on the requisition and the vendor ships the goods directly to you

/unli6e third party order processing, where the vendor ships directly to your customer0. ou then ship the goods

to your customer. hile the goods are part of your inventory, you manage them as part of the sales order stoc6.

$ales order stoc6 consists of stoc6 that is assigned to specific sales orders and cannot be used for other

purposes.

Process Flow for 7rd Party $ales

+ustomi1e the third party sales in summary%Prerequisites for 7rd party sales,

Purchasing org,

purchasing group,

assign the Purchase org to company code

assign Purchase org to plant,

should not maintain the stoc6 in material, it should be trading goods,

8. +reate 5endor 9:;8

). +reate aterial < aterial #ype as =#rading 4oods=. Item category group as ='A($=.

7. Assign Item Category #A$ to Order type that you are going to use.



>. A sale order is created and when saved a P* is generated at the bac6ground

?. ith reference to $O a PO is created /)8(0. #he company raises PO to the vendor.

@. 5endor delivers the goods and raises bill to company. receives the invoice I*O

. 4oods receipt I4O

B. 4oods issue

C. #he item cat #A$ 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 #hird party sales.

8;. 'illing D--

$& - 7rd party sales order +reate $ales Order

5A;8Order #ype

$ales org, distr chnl, div

nter

$old to

PO E

aterial

uantity

nter

$ave

$& - 7rd party sales order 5iew the P* that is created with a third party sales order 5A;8

Order (umber

4oto Item Overview

Item -G$chedule Item

$& - 7rd party sales order 5iew the P* that is created

?)(

:ey in the P* number

$ave

$& - 7rd party sales order Assign the P* to the vendor and create PO?

:ey in the P* number

#oggle the =Assigned Purchase *equisition=

!ecute

+hec6 the bo! ne!t to the material

Assign Automatically button

+lic6 on =Assignments= button

+lic6 on =Process assignment=

#he =Process Assignment +reate PO= bo! , enter

&rag the P* and drop in the shopping bas6et

$ave



$& - 7rd party sales order *eceive 4oods

I4OH4*

PO (umber

&( (umber

'atch tab , clic6 on classification

$erial (umbers tab&ate of Production

Flag Item O:

+hec6, ust in case

Post

$ave

$& - 7rd party sales order +reate Invoice

I*O

Invoice &ate

3oo6 for the PO , state the vendor and the aterial

+hec6 the bo!+lic6 on =+opy=

Purchase Order Number /bottom half of the screen0

Amount

$tate the baseline date

$imulate J Post

Invoice (umber

DInvoice bloc6ed due to date variance

$& - 7rd party sales order +reate a delivery order

53;8(

In the order screen , go to the menu $ales &ocument , select =&eliver=4o to =pic6ing= tab

$tate the qty and save

$& - 7rd party sales order +reate a billing document

5F;8

nsure that the delivery document is correct in the

nter

4o to edit -G 3og

$ave

third party sales process

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