In a third party order processing the company does not deliver the items requested by the customer, instead we pass the order to a third party vendor who delivers directly goods to the customer and bill the company.

A sales order may consists partly or wholly of the third party items.

The process flow of third party sales

Automatic third party order processing:

If a material is always delivered from the vendor, in the material master record of that item, we need to specify that it is a third party item. For this we take item category group BANS. While processing the sales order for third part item, system automatically determines corresponding item category TAS which is for third party items.

Manual third party order processing:

In the case of a material that we normally deliver ourselves but accordingly need to order from a vendor, we can make that items as a third party item during the sales order processing by changing the item category from TAN to TAS.

Creating sales order for third party item:

VA01 - To create the sales order (another term for 3rd party sales is call Drop Shipment)
Order type is ‘OR’
Enter third party item and create sales order
Standard item category for third party item is TAS
In ‘TAS’ Billing relevance indicator is set to ‘F’ –(order rel billing doc-status according To Invoice qty)
When we save the sales order the system automatically create a purchase requisition which can be seen in the schedule lines.
 
 

Notes: 

For the system to create purchase requisition in the definition of schedule line category ‘CS’ we have to specify ‘NB’ the purchase requisition type in the field ‘order type’

Assigning the Purchase Requisition to Vendor and Creating Purchase order: ME57
Specify the Purchase requisition no. and check the field ‘Assigned Purchase Requisitions’ and execute.
Select the Record and select the button ‘Process Assignment’
The system gives a pop up box for creating PO.
Drag and drop the PR no. in the ‘Basket’ and save PO.

Creating Post Goods Receipt - MIGO
Specify the PO no and execute
Check the field Item ok
Select the button ‘Post Document’

Creating MM invoice (incoming invoice) - MIRO
Specify PO no and invoice date
Specify the ‘Amount’
Select the button ‘Simulate’
Select the required GL Account and select the button ‘Post’

Create the SD Invoice - VF01 create

End of the Third Party Sales Process.

See Also
SAP SD Asset Sales

SAP SD Books :-
SAP Sales and Distribution, Interview Questions, Certification and Configuration Books

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