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

1.
2.
3.
4.
5.
6.

7.

Third Party Scenario process flow

PO from Customer
SO item to Purchase
requisition creation
PO from Purch. Reqn.
Goods from Vendor
to Customer
MM Invoice creation
Billing document
created with ref to SO
based on IR qty
Invoice to Customer

THIRD PARTY PROCESS FLOW

Customer

Purchase
Order

Purchase
Reqn.

Sales
Order
1
2

Vendor

MM
Invoice

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