Third-Party Order Processing

In third party sale a company does not deliver its own products to the customer instead it will transfer the requirement to a third party vendor, who then delivers the goods to the customer, and bills the company.

In the standard SAP ECC system you can configure the processing of third party sales scenario in two methods.

Ø  Manually: Suppose during sales order processing if you found that the product is not available and you required to supply the products through a third part vendor, you can manually initiate a third party processing for the item.

You can do this simply, by overwriting the item category of the item during sales order processing.

You have to change the item category of the item from TAN to TAS. Then the item is processed as a third-party item.

Ø  Automatically: If a material is always delivered through a third-party vendor, you can specify in the material master that the material is a third-party item.

The item category group for the third party item is “BANS”. The standard system proposes item category TAS (third-party item) for a material assigned to this group. This item category triggers third-party order processing.

Third-Party Order Processing

1)      When you save a sales order with third party item, the system automatically create a purchase requisition in purchasing.

2)      While creating a purchase requisition the system automatically determine the vendor for the item.

3)      If the material have different schedule line (customer requires the material in partial deliveries or for different Ship-To-Parties) the system will create different purchase requisition for each schedule line.

4)      If the items in a sales order have to be delivered from different vendors then also the system will create different purchase requisition for each line item.

5)      The system automatically copies the address of the Ship-To-Party, Delivery quantities, Requested delivery date and other relevant data to the purchase requisition.

6)      The purchasing department is the department which creates the required purchase orders with reference to the purchase requisition. Purchase orders are created from purchase requisitions in the usual way.

7)      When the purchase order is created the system will automatically save the purchase order number in the document flow.

8)      Any change you made in the sales order will automatically copied into the purchase requisition and purchase order. Likewise any changes created in the purchase order will automatically copy into the sales order For example, if the vendor changed the requested delivery date or confirms quantities that will copied to the sales order or when you change the address of the Ship-To-Party that will copied to the purchase order.

9)      During delivery scheduling in third party processing, the system will determine the confirmed delivery date calculating the time required by the vendor to process and deliver the goods to the customer and time required by the purchasing department to process third-party orders.

10)  You can deliver the goods yourself after purchasing the goods from the vendor. In this case the system will consider time required by the vendor to process and deliver the goods to you and the time required for you to process the delivery and transit time, while performing the delivery scheduling.

11)  Billing in third party order processing is depends up on the configuration you made in the item category.

12)  You can either bill the item as “order-related on the basis of the order quantity” (Billing relevance B) or “order-related billing on the basis of the invoice quantity” (Billing relevance F) depends upon the configuration of item category.

13)  If you set the billing relevance F in the item category, the system does not create a billing due list until an invoice from the vendor has been received and processed by the purchasing department. That means system will create a billing document only when the purchasing department confirm the delivery of the goods by posting thee goods receipt.