Understanding the Third Party Process in SAP MM

I work as an SAP S/4HANA SD consultant. In this blog post, we will explore the Third Party Sales process within the SAP S/4HANA system.

INTRODUCTION:

Let’s start with a brief explanation of the “third party sales” process’s capabilities.

PROCESS FLOW:

In order to facilitate third-party processing, SAP provides the TAS item category and CS schedule line category. The CS schedule line category includes default settings for purchase requisition type, item category, and account assignment. It is responsible for initiating the purchase requisition for the order items. On the other hand, the TAS item category has billing relevance F, which means that billing can only be done once the invoice receipt for the purchase order is posted.

To create a third-party material in SAP MM, the item category Group BANS should be selected in the MM01 transaction. When manually creating a purchase order, there is no need to indicate automatic creation. However, for automatic purchase order creation, the item category ALES should be used and its indicator for automatic PO creation must be set in advance. Additionally, the purchase information needs to be assigned to the relevant sales organization in SPRO.

To proceed with the process, a sales order of type OR should be created using transaction VA01. To find the Purchase Requisition Number associated with this sale order, open it in VA03 and navigate to the Schedule Line Tab where you can view it.

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Once identified, convert the purchase requisition into a purchase order by using transaction ME21n.

Invoice Receipt Process in SAP MM

The business receives a bill from the vendor and needs to approve it. The invoice receipt is important for verifying the invoice. Using transaction code MIRO, the system validates the invoice by checking factors such as received amount, prices, and other conditions based on the purchase order.

Third Party Billing in SAP MM

In India, third party procurements involve an entity procuring goods or services on behalf of a third party. This can include state government entities or government business enterprises.

What constitutes a third party ERP?

– Third-party extensions allow for centralized management of projects within an ERP system.

timeline tracking etc.

– Integrating these extensions with SAP MM improves efficiency in handling various project-related

activities while ensuring accurate invoicing and timely delivery.

What does third-party purchasing mean in SAP?

In third-party order processing, your company does not physically deliver the items requested by a customer. Instead, you forward the order to a third-party supplier who directly ships the goods to the customer and invoices your company. A sales order can include both partially or entirely third-party items.

– Third-party order processing involves passing customer orders to external suppliers.

– The third-party supplier is responsible for delivering the goods directly to the customer.

– Your company receives an invoice from the third-party supplier for these transactions.

– Sales orders may contain either partial or complete sets of third-party items.