Third party processing

Sales & Distribution

Company
LOGO
 Third party processing

 Third Party Scenario falls under special business

processes in sales. This scenario or modification of it is
used in most industries.

 In Third Party processing, company does not delivery

items requested by customer, the order is passed on to a
third party vendor. The vendor then manufactures the
goods, delivers to customer directly and Invoices the
organization. The organization then would bill the
customer based on the invoice receipt from Vendor.

 The scenario is explained graphically in next slide

 Third party processing

 Third Party Scenario process flow

THIRD PARTY PROCESS FLOW
3. PO from Customer
3 Customer
4. SO item to Purchase Purchase Purchase Sales
requisition creation Order Reqn. Order
1
6. PO from Purch. Reqn.
2
7. Goods from Vendor
to Customer 4

9. MM Invoice creation
Vendor
10. Billing document
created with ref to SO 5 7
based on IR qty MM
Invoice
13. Invoice to Customer 6
Billing
Document
 Third party processing
 Key configuration

Item category TAS is provided. It has control using which billing will be
with reference to order.

Item Category Group ‘BANS’ is provided for Third party items if
automatic processing of third party needs to be setup in order.
 Schedule line category CS triggers creation of purchase requisition. No
requirement transfer or availability check as it is to be supplied from
vendor
 Copy control between order type, OR and billing type, F2 configured
such that quantity billed to the customer is as per the quantity invoiced
by vendor

 Vendor master for third party vendor is to be created.

 Third-party item category in purchasing ensures that GR

is not required for this purchase order item