1.

Business Scenario a. Business Process Steps a. Create Third Party Sales Order (VA01) { Purchase requisition will be automatically generated by the system due to the following configurations The schedule line category for third party sales order is CS. For the schedule line category CS in Define schedule line category, the Order type is defined as NB which stands for purchase requisition standard, Item category is defined as 5 which is a third party item and Account Assignment Category is defined as 1 which stands for third Party. This triggers the generation of purchase requisition automatically by the system.} b. c. d. Create purchase order with reference to Purchase Requisition (ME21N) Create Invoice Verification for Vendor (MIRO) w.r.t Purchase Order Generate billing document to the customer (VF01) w.r.t 3 rd party sales order.

2.

Inputs/Pre Requisitions a. Organization Data Sales organization 3000 Purchase Organization 3000 Distribution Channel01 Division 00 Plant 3000 Storage Location 0002 Ware house Number 001 b. Master Data Material {Create a Trading Material (material type: HAWA), In Sales Organization 2 view assign Item Category Group as BANS, in MRP2 view make sure that the procurement type is F External Procurement, there should be no warehouse related views, assign MRP Type as ND No Planning Material Number used in this document: 4540 Customer200193 Vendor --- 400036 (need to create a Vendor if doesnt have) Condition record for price, PR00 @100.00

c.

SPRO Configurations

Define the item category {TAS Third party Item, Billing Relevance F Order related Billing Doc- status according to invoice quantity} Define Item Category Group{BANSThird Party Item} Assign item Categories {OR BANS TAS} Define the Schedule line categories {CS Leg, Order TYPE NB (Purchase Requisition Standard), Item Category 5 (Third Party), Account Assignment Cat 1 (Third- Party)} Assign Schedule Line Category--- {TAS CS}

SPRO Configurations check for Third Party Sales

1. Configurations list for third party sales in SPRO settings

2. Click on Define the item category and define TAS as Third party Item. Click on Display details icon.

3.

Check whether the Billing Relevance is defined as F {Order related Billing Doc- status according to invoice quantity}. Click on logoff button.

4. Click on Define Item Category Group BANSThird Party Item. Click on Logoff icon

5. Click on Assign item Categories and assign standard order type OR to third party item category group
BANS and item category TAS. Click on Logoff Icon.

6. Click on Define the Schedule line categories and define the schedule line category as CS Leg

7.

Click on display details icon and define Order TYPE as NB (Purchase Requisition Standard), Item Category as 5 (Third Party), Account Assignment Cat as 1 (Third- Party)

8. Click on Assign Schedule Line Categories and assign item category TAS to schedule line category CS

Material Master:

1.

Create Material as trading goods and under sales organization 2 select the item category group as BANS.

2. Under MRP1 view, make sure to select MRP type is selected as ND-> no planning.

3. Under MRP 2, make sure procurement type is selected as F External Procurement.

Business Process Steps

1. Create 3rd party sales Order (initial screen) T-Code VA01.

2. Sales order overview screen. Enter the sold to party, material, quantity and storage location and hit enter.

3. Sales Order: Purchase Order Scheduling Screen. Click on continue

4. Schedule line for the third party standard sales order

4. Pricing condition maintained for the material

5. Check for completion and save the document.

6. Enter TCode ME5A in the command bar and hit enter.

List of purchase requisitions screen. Enter material and plant

7. Click on the purchase requisition number.

8. Purchase requisition for the standard third party sales order created. Double click on PR no to check the
source of supply and other details > Back.

9. Enter TCode ME21N in the command bar and enter.

Create purchase order w.r.t PR. Click on the document overview screen at the top left corner of the screen. Click on the variants icon and Select the purchase requisition and click on adopt icon under the document overview.

10. Check the purchase Order tabs such invoice etc... and save the document.

11. Enter MIRO in the command bar to create Invoice verification for vendor. Enter the company code and hit
enter.

12. Enter the invoice date, amount, and at the item level, change the tax code to I0 (A/P sales tax exempt),
and jurisdiction code to IL0000000 and click on Simulate.

13. Check the GL accounts.

14. Click on Save/Post

15. Enter VF01 to create billing document for the customer and hit enter.

16.

Overview of the billing items.

17 Save the billing document

Document Flow of the Standard Third Party Sales Scenario

THIRD-PARTY SALES
Introduction
In third-party sales the company transfers the sales order to an external vendor. This vendor delivers the goods directly to the customer and invoices the company. The customer receives an invoice from the companys sales office.

Someof Prerequisiteconfiguration
1. CreatePurchasingorganization
Path: SPRO - Enterprise Structure- Definition-Materials Management- Maintain Purchasing Org.

2. Createpurchasinggroup
Path: Materials Management - Purchasing - Create purchasing group

3. AssignPurchasingOrg. to companycode*
Path: SPRO - Enterprise structure - Assignment - Materials management - Assign purchasing organization to company code.

4. Assignpurchasingorganizationto plant
Path: SPRO - Enterprise structure - Assignment - Materials management - Assign purchasing organization to plant

5. Maintainpurchasingarea
Path: SPRO - Materials Management - Purchasing - Maintain Purchasing Area

6. MaintainPurchasingAreaDetermination*
Path: SPRO - Materials Management - Purchasing - Purchasing Area Determination

7. CreateVendorAccountGroup
Path: SPRO - Financial Accounting - Accounts Receivables and Accounts Payables - Customer Accounts - Vendor Accounts - Master Data Preparations for Creating Vendor Master Data - Define Account Group

8. Numberrangeassignementto VendorAccountGroup
Path: SPRO - Financial Accounting - Accounts Receivables and Accounts Payables - Customer Accounts - Vendor Accounts - Master Data Preparations for Creating Vendor Master Data - Assign Number Rangers to Vendor Group

9. Someothercritical factorsinvolved
Refer the following: Key Factors in Configuartion for Third-party Sales

SomePrerequisitemasterdata preparation
1. CreateThird-Party relatedMaterial Master
TCode: MM01

Maintain:
Industry Sector:Retail Material Type:Trading goods (KMAT)

Viewsto maintainin material In Basicdata 1:

Maintain BANS in Gen/Itemcatgroup

In sales:Salesorg. 2:
Maintain BANS In item category Group

In Sales:General/Plant:
Maintain KP in Availability check

In Purchasing:
Enter the purchasing group. Click on the Autom. P0

2. CreateVendorMasterData for Third-Party Sales

TCode: XK01 provide the details like Company code, Purch. Org., & Account Group and start creating Vendor.

3. CreateVendorInfo Record(if required)

TCode: ME11 Enter the Vendor no. Material no., Purchasing org. and Plant and Create Info Record.

Processflow

Step: 1 CreateSalesOrder
Use TCode: VA01 Enter the

Sold to Party, Ship to party Customer PO no. & Matl. No. (Third party material) Ordered Qty. A screen with the following details will get created. Then click on the continue button Pick the Schedule lines. A screen will be displayed with Delivery date, Rounded qty. and Confirmed qty. Note: Before saving the sales doc. Purchase requisition no. will not get created Save the Sales Order. On saving the sales order, purchase requisition is generate in the back ground. To know the purchase requisition number, either go schedule line tab in item level of the sales order and check in procurement tab or go sales order in status overview.

Step: 2 CheckPurchaseRequisition(PR)
Use TCode : ME53N

Step: 3 AdoptPurchaseRequisitioninto PurchaseOrderor createPO with referenceto PR

Use TCode: ME21N Keep the standard order (Which you have defined in the Document type) Enter the purch. Org. Purch. Group. and Company code Enter the Purchase Requisition no. After Entering the Details, Press Enter Button A screen as appears with all the details like Matl. Po. Qty, Deliv. Date, Net price Curr etc. Then Save the PO. Hence PO is created

Step: 3 Releasethe PO. Number.(Basedon releasestategyin PO type used)

TCode: ME29N Now Release the Order. On release it will give following message "Purchase Order no. xxxxxxxxx changed"

Step: 4 Post InvoiceReceipt

Use TCode: MIRO This done once you receive the vendor's invoice. Basic Data Tab (Header Level) - Enter Invoice Date, Reference No, Amount (tax inclusive) and Tax amount. PO Reference Tab (Item Level) - Enter the purchase order number Check at the header, if the balance is zero and the green indicator is on. If yes, check the line items which have to be posted else correct the amount

and/or tax amount to make the balance zero. Save the invoice receipt document

Step: 5 Generateinvoicefor Third-party salesorder

Use TCode VF01 This to create the billing document which will be send to the customer as request for payment. Provide sales document number and press enter. System will take you to billing overview screen. Save the document to create billing doc. Release the billing Doc to accounts, if required.