Hi SAPians,
I am SAP S/4HANA SD consultant.This blog will look at the Third Party Sales process in the SAP S/4HANA system.
INTRODUCTION:
Let's start with a brief explanation of the "third party sales" process's capabilities.
Third party order processing is a type of sales process wherein your vendor directly supplies the goods to the customer, and you bill your customer for these goods on receipt of delivery proof from the vendor.
Distribution of goods directly to the customer by your vendor provides you with benefits such as no inventory management, warehouse management or transportation hassle, no storage cost and so on.
PROCESS FLOW:
- The process starts when you create a sales order with a line item relevant for third party processing (a line item with item category TAS).
- SAP creates a Purchase Requisition for this line item, which then converts it into a Purchase Order.
- Then the purchase order is sent to the vendor, and the vendor supplies the goods to the customer and sends you an invoice for the goods delivered.
- You post the invoice receipt (I/R) against the purchase order via transaction code MIRO.
- The billing document is created for the delivered quantities as per the normal billing process.
CUSTOMIZATION SETTINGS:
- To support the third-party processing, standard SAP comes with item category TAS and schedule line category CS. Schedule line category CS contains the defaults for the purchase requisition type, item category, and account assignment and thus is responsible for triggering the P/R for the order line items.
- Item category TAS comes with billing relevancy F, which means that the billing for the order item will be possible only when the I/R for the purchase order is posted.
MATERIAL MASTER:
- Third-party material is created with the item category Group BANS in MM01.
Manual Purchase Order: TAS does not have a Create PO Automatic indication.Automatic Purchase Order: Automatic PO creation is also an option. The item category ALES will be utilised for that. In ALES, the automatic creation of purchase orders indicator is already set. The purchase information needs to be allocated to that specific sales organisation in SPRO. - Create a sale order with order type OR in VA01.
- To view the Purchase Requisition Number, open the created sale order in VA03.We can see the PR number on Schedule Line Tab.
- The purchase requisition needs to be converted into purchase order in ME21n.
GOODS RECEIPT:
- The receipt of goods is not feasible if the account assignment category is The goods receipt is available if account assignment category X is applied.
- Inventory management is unaffected by this occurrence since items are transferred from the vendor to the consumer directly during third-party processing.
- However, it is possible for the sales department to record and enter delivery to the consumer in the system.
INVOICE RECEIPT:
- A bill from the vendor is sent to the business for approval. For invoice verification, the invoice receipt is crucial.
Based on the purchase order, the business must validate the invoice. The system checks the amount received, prices, and other circumstances during the invoice verification process in T code MIRO.
CUSTOMER BILLING
- Once the invoice receipt is completed, the customer can be billed by T-code VF01.
- Since the outbound delivery is not involved in third party sales process, the order related invoice will be created.
- In the item category TAS, the billing relevance indicator is set by F as default.
CONCLUSION:
I hope this is useful for all of our community Team members.
I believe, it will be helpful and will provide sufficient information.
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