The document outlines the steps for processing third party sales orders in SAP SD. It involves: 1) Creating a sales order for a third party item which automatically generates a purchase requisition. 2) Creating a purchase order from the purchase requisition to the vendor. 3) The vendor supplies the goods to the customer and issues an invoice to the business. 4) The business verifies the invoice receipt and issues a billing document to the customer. 5) The customer makes payment to the business, who then makes outgoing payment to the vendor.

1. SAP SD THIRD PARTY
PROCESS
Third Party Process Sales

2. STEPS FOR THIRD PARTY PROCESS
1. Purchase Order from Customer
2. Create SO for Third party item ( Purchase requisition generates
automatically)
3. Create Purchase Order to Vendor from Purchase Requisition.
4. Goods supply from Vendor to Customer
5. Incoming Invoice creation
6. Create billing document with ref to SO based on IR quantity.
7. Invoice to Customer
8. Customer Incoming payment
9. Outgoing Payment to the Vendor

3. THIRD PARTY PROCESS
▪ In third-party order processing, the business passes the order from the
customer, to a third-party vendor who then ships the goods directly to
the customer and bills the business.
▪ When a third party order is saved, purchase requisition is automatically
created and forwarded to the purchase department.
▪ The purchase department then creates the purchase order on the third-
party vendor indicating that all goods are to be delivered directly to the
customer.
▪ The vendor delivers the goods to the customer and bills the business for
the same.
▪ The business then bills the customer for the goods delivered by the
vendor after verifying the invoice receipt

4. THIRD PARTY PROCESS FLOW

5. PRE REQUISITES
Pre requites
Master data :
1.Create Vendor for Third Party Process - XK01
2.Maintain Item Category group BANS in the Material Master
Sale Org2 View.
3.Maintain Purchase view for the Material Master
5

6. PRE REQUISITES- CONTINUE
Configuration
Item category determination: T Code : VOV4
OR ( Sales document Type ) +BANS( Item category group)--TAS ( Third Party Item )
Schedule Category -Tcode VOV5 : CS- Leg

7. PRE REQUISITES- CONTINUE
Order Type :NB- Purchase requisition Std
Item Category : 5- Third Party
Acct. Assignment Category : 1 Third party

8. CREATE THIRD PARTY TEST ORDER

9. PURCHASE REQUISITION GENERATED
AUTOMATICALLY
▪ Note down purchase requisition: 10015315

10. CREATE PURCHASE ORDER REFERENCE TO PR
▪ Transation : ME21N,
▪ PO created 4500017989 reference to PR 10015315

11. POST VENDOR INCOMING INVOICE
▪ Transaction: MIRO
▪ Incoming Vendor Invoice posted 5105609122

12. CUSTOMER INVOICE WITH IV QTY

13. CREATE CUSTOMER INVOICE REFERENCE TO SALES ORDER
▪ Transaction VF01.Customer Invoice 90038458

14. CUSTOMER PAYMENT

15. POSTING INCOMING CUSTOMER PAYMENT

16. CLEARING DOCUMENT

17. CUSTOMER ACCOUNT PAYMENT CREDIT

18. VENDOR OUTGOING PAYMENT
▪ Transaction : FB-53

19. POST THE VENDOR OUTGOING PAYMNET

20. VENDOR PAYMENT CREDIT TO VENDOR
ACCOUNT

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