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    Third Party Processing

    Uploaded by

    Vishnu Kumar S
    Third-party processing allows a company to place an order with a vendor to deliver goods or services directly to a third party, such as a customer. This is done by creating a third-party item in a sales order, purchase requisition, or purchase order. The vendor then delivers the goods to the customer and invoices the company. Key activities include entering sales orders, purchase orders, receiving vendor invoices, and creating billing documents for customers. Third-party items can also be created manually in purchase requisitions and orders without using the sales component.

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    Third Party Processing

    Uploaded by

    Vishnu Kumar S
    208 views3 pages
    Third-party processing allows a company to place an order with a vendor to deliver goods or services directly to a third party, such as a customer. This is done by creating a third-party item in a sales order, purchase requisition, or purchase order. The vendor then delivers the goods to the customer and invoices the company. Key activities include entering sales orders, purchase orders, receiving vendor invoices, and creating billing documents for customers. Third-party items can also be created manually in purchase requisitions and orders without using the sales component.

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    Third Party Processing

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    Third-party processing allows a company to place an order with a vendor to deliver goods or services directly to a third party, such as a customer. This is done by creating a third-party item in a sales order, purchase requisition, or purchase order. The vendor then delivers the goods to the customer and invoices the company. Key activities include entering sales orders, purchase orders, receiving vendor invoices, and creating billing documents for customers. Third-party items can also be created manually in purchase requisitions and orders without using the sales component.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    208 views3 pages

    Third Party Processing

    Uploaded by

    Vishnu Kumar S
    Third-party processing allows a company to place an order with a vendor to deliver goods or services directly to a third party, such as a customer. This is done by creating a third-party item in a sales order, purchase requisition, or purchase order. The vendor then delivers the goods to the customer and invoices the company. Key activities include entering sales orders, purchase orders, receiving vendor invoices, and creating billing documents for customers. Third-party items can also be created manually in purchase requisitions and orders without using the sales component.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Third-Party Processing

    Purpose
    In third-party processing, you place a purchase order with a vendor to deliver goods or
    perform a service for a third party (for example, for a customer).
    This means that your company does not deliver the material. You forward the order to an
    external vendor instead, who then sends the material directly to the customer and invoices
    you.

    Third-party processing is carried out in the components SD (Sales and Distribution)


    and MM (Materials Management). By creating a third-party item in a sales order, purchase
    requisition, or purchase order, you can request that the vendor sends the goods directly to
    your customer. A document can consist of one or more third-party items.

    Activities
    Entering a Sales Order
    You enter a third-party item in a sales order. The system automatically creates a purchase
    requisition item for each third-party item in the sales order.
    Entering a Purchase Order to Vendor
    You enter a purchase order with a third-party item with reference to the requisition third-
    party item.
    Delivering Goods to Customer
    The vendor supplies the goods to the customer. To document this step in the system, you
    can post a statistical goods receipt in Inventory Management. However, this is not
    compulsory.
    Entering a Vendor Invoice
    The vendor sends you an invoice. You enter the invoice receipt in Invoice Verification. The
    invoice receipt is necessary before a billing document can be created in SD.
    Creating a Billing Document for the Customer
    In SD, you create a billing document for the sales order. Depending on the Customizing
    settings (whether or not the billing-relevant indicator is set for the item category in SD), you
    draw up the billing document on the basis of the order quantity or on the basis of the
    quantity specified in the vendor invoice. If the customer is billed on the basis of the order
    quantity, you can create the billing document immediately after the sales order is entered. If
    the customer is billed on the basis of the quantity specified in the vendor invoice, you
    cannot create the billing document until the vendor invoice has been entered in Invoice
    Verification.

    If you do not use the SD component, third-party orders can be handled


    completely in Materials Management. Here you enter a third-party order
    (or a purchase requisition) manually with the item category S and account
    assignment category X. In this procedure, the activities Entering a sales
    order and Creating a billing document for the customer are
    eliminated.
    Third-Party Processing in Purchasing
    In Purchasing you can enter third-party items in purchase requisitions as well as in purchase
    orders.
    Purchase Requisition
    When you create a third-party order in SD, the system automatically creates a purchase
    requisition.
    Changing an Automatic Purchase Requisition
    If a purchase requisition was created from the sales order, you can only make certain
    changes to the requisition. You can, for example, change the allocated purchasing group.
    However, the order quantity and scheduled delivery date can only be changed in the sales
    order. The system updates the change in the purchase requisition.
    You can also determine to which purchase requisition the sales order refers. You can display
    the account assignments for the requisition item by choosing Item
    Account assignments.
    Creating a Third-Party Item Manually
    If you do not use SD, you can plan a third-party business transaction using a purchase
    requisition. To enter a purchase requisition with a third-party item manually, proceed as
    follows:
    1. Enter the item category s and an account category (for example, x - all account
    assignments). When you press
    ENTER , the account assignment screen is displayed.
    Enter the account assignment data (for example, the number of the G/L account). Which account
    assignment data you have to maintain depends on the account assignment category.
    Save the purchase requisition.
    Purchase Order
    A third-party order is usually created referencing a third-party item in a purchase requisition.
    You can create purchase orders in this way individually or collectively. Both procedures are
    described in the MM - Purchasingguide.
    If you do not use SD and have not entered a purchase requisition, you can also enter a third-
    party order manually.
    Creating a Third-Party Item Manually
    To enter a third-party item in a purchase order without an SD order or purchase requisition,
    proceed as follows:
    1. Enter a third-party item manually in the same way as the purchase requisition.
    2. After entering the account assignment, you receive a screen in which you can enter
    the address of the sold-to party.
    3. Enter either the customer number or a delivery address.
    4. Check whether goods receipts can be made for the third-party item. Goods receipts
    are possible if the goods receipt indicator is set in the item.
    5. Save the purchase order.
    Setting the Goods Receipt Indicator
    The account assignment category X in the Customizing system of Purchasing determines
    whether a goods receipt can be posted for a third-party item. Here you define whether a
    goods receipt is possible, not allowed or compulsory.
    If a goods receipt is possible, the GR indicator in the purchase order item is changeable.
    When you enter the purchase order, you decide if a goods receipt is to be posted or not.
    Reference to Purchase Requisition
    If you enter an order item with reference to a purchase requisition, the vendor's address is
    copied and cannot be changed.
    Special Features when Printing
    When issuing the purchase order, if the delivery address is identical for all items, it is printed
    once in the header. If the items have different delivery addresses, a delivery address is
    issued for each item.

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