TRADING GOODS THIRD PARTY SALES

Business Process

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The Following information from SAP help elaborates the business process thereafter the business process in SAP has been shown through Steps followed by FAQs Third-Party Order Processing Purpose 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. The following graphic shows how a third party business transaction is processed.

If you order products from a third-party vendor, who delivers the goods directly to you so that you can then deliver them to the customer yourself, you can use individual purchase order processing..

Process Flow The processing of third-party orders is controlled via material types. Material types define whether a material is produced only internally, can be ordered only from thirdparty vendors, or whether both are possible. For example, a material that is defined as a trading good can only be ordered from a third-party vendor. However, 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 Third-Party Orders in Sales Third-party items can be created automatically by the system, depending on how your system is set. However, 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. During subsequent sales order processing, the system automatically determines the appropriate item category for a third-party item: TAS. To specify a material as a thirdparty item, enter BANS in the Item category group field in the Sales 2 screen of the material master record.

Manual 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 NORM in the material master. If, as an exception, you use a third-party material, change the entry TAN to TAS in the ItCa field when processing the sales document. The 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 exists. In the purchase order, you can display the address data for the ship-to party in the attributes for the item. You 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 Third-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. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During 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. During 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 texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order. All changes made in the purchase order are automatically made in the sales order as well. For example, 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. How Purchasing Data Affects Delivery Scheduling During the automatic delivery scheduling of third-party items, the system takes into account lead times specified by the purchasing department. For example, the system allows for the time required by the vendor to deliver the goods to your customer and also the time required by the purchasing department to process third-party orders. Comparing Purchasing Data with Sales Data You can create a list of all sales orders with third party items for which there are discrepancies between the quantities ordered, invoiced, canceled, or credited in Sales and the quantities ordered, invoiced or credited in Purchasing.

Step1 Create the Sales Order

Select the Item screen and check the item category: The Item category is TAS Save the order Step2 VA02 and in the order check Item level -- > schedule line and select procurement 12082

We can see a Purchase requisition No 10013643 And again from schedule line select Purchase requisition tab

We can see the Vendor No : . 77777 And the info record Save order

Step III Now create the Purchase order by copying the purchase requisition

Transaction code ME58 Enter the details and execute the program

Select the vendor and select Process assignment

Order Type

NB

Continue

Select the Purchase requisition and select adopt Now it copies data from Purchase REQ

Check the tax

Save the Purchase order

PO 4500017180 Step IV Now we have to do Invoice verification Use TCODE MIRO

Enter the Invoice date and PO NO

Select simulation

Here can see the vendor account is shown for credit , Tax account for debit and most important the cost of the Goods sold for debit Note : Here the system is considering the material as consumed and debiting the cost of the goods sold and unless this happens the customer Invoice can not be prepared ie the reason why MIRO has to be done then only customer can invoice can be prepared Now POST

Posting document prepared Step V Create the Sales Invoice VF01

It is referring the sales order

Check the document Flow