SAP SD: Class- 54: Third party process || Your's Yuga SAP SD
TLDRThis video explores the third-party process in SAP SD, detailing how companies handle orders when stock is unavailable. It explains the creation of sales orders, automatic generation of purchase orders, and the dispatch process involving vendors and customers. The tutorial covers document types, item categories, and scheduling to manage third-party transactions efficiently, highlighting the differences between shipping notifications and the invoicing process in SAP.
Takeaways
- 😀 The third-party process in SAP SD is initiated when a company doesn't have the required stock and needs to order from a vendor to fulfill a customer's order.
- 📦 The company informs the vendor to dispatch the goods directly to the customer, and the vendor raises an invoice to the company, which in turn raises an invoice to the customer.
- 🛒 In SAP, creating a sales order automatically generates a purchase order (PO) that is sent to the vendor, and upon delivery, the vendor sends an invoice to the company.
- 🔄 The standard item category for third-party transactions involves controls in transaction codes (T-codes) like TAS and scheduling categories to manage the process effectively.
- 📝 The configuration for third-party sales in SAP involves creating specific sales document types and copying from standard document types to create new ones for third-party sales.
- 🚫 If the item category is set to 'Third Party' at the item level, the system does not allow creating customer billing documents or inventory documents because the company does not hold the stock.
- 🔑 The difference between 'with shipping notification' and 'without shipping notification' is crucial for determining when the invoice can be raised to the customer.
- 📆 With shipping notification, the vendor sends a goods receipt (GR) to the company, which then uses it to raise an invoice to the customer. Without it, the vendor raises an invoice to the company immediately upon dispatching goods to the customer.
- 🔍 The system uses item categories and copy controls to determine whether a goods movement document (MIGO) is needed and to control the creation of billing documents.
- 🛠️ Creating a purchase requisition (PR) and purchase order (PO) in SAP requires specific configurations, including linking to the appropriate company code and plant.
- 📈 The process of creating accounting documents and managing the billing process in third-party transactions involves careful configuration of item categories, document types, and copy controls in SAP.
Q & A
What is the third party process in SAP SD?
-The third party process in SAP SD is a scenario where a company, not having the required stock to fulfill a customer's order, informs a vendor to dispatch the goods directly to the customer. The vendor then sends an invoice to the company, which in turn raises an invoice to the customer.
How is a sales order created in SAP for a third party process?
-In SAP, a sales order for a third party process is created by configuring a new sales document type specifically for third party sales, copying from the standard document type and making necessary adjustments.
What is the purpose of configuring item categories in the third party process?
-Item categories in the third party process are used to control various aspects of the process in SAP, such as whether the vendor invoice is created with or without a mirror system, and whether the customer billing is allowed without a mirror document.
What are the two types of third party processes mentioned in the script, and how do they differ?
-The two types of third party processes are with shipping notification and without shipping notification. The difference lies in when the vendor sends the invoice to the company and when the company can raise an invoice to the customer. With shipping notification, the invoice is raised after the goods are received (dummy goods receipt), whereas without shipping notification, the invoice is raised immediately after the dispatch.
How does the system in SAP determine the automatic generation of a purchase order (PO) after a sales order is saved?
-The system in SAP determines the automatic generation of a PO after a sales order is saved based on the scheduling and category settings, specifically the item category and the controls set in the scheduling category.
What is the significance of configuring a dummy goods receipt (Amigo) in the third party process?
-A dummy goods receipt (Amigo) is significant in the third party process as it provides a reference for the system to know the quantity dispatched by the vendor to the customer, which is necessary for raising the invoice to the customer.
Why is it necessary to create a mirror document in the third party process?
-A mirror document is necessary in the third party process to reflect the transaction details in the company's accounting system. It helps in tracking the financial implications of the third party transaction and is used for raising the invoice to the customer.
How does the system control the creation of billing documents in the third party process?
-The system controls the creation of billing documents by using item categories and copy controls. The item category settings determine whether a billing document can be created with or without a mirror document, and the copy controls determine how the billing quantity information is passed from the mirror document to the billing document.
What are the steps involved in creating a purchase order in SAP for a third party process?
-The steps involved in creating a purchase order for a third party process in SAP include configuring the purchase order type, linking it to the purchase organization and company code, assigning the plant, and creating the vendor number. Then, the purchase requisition is generated from the sales order, and the purchase order is created using the purchase requisition number.
How does the system ensure that the correct billing quantity is passed from the mirror document to the billing document in the third party process?
-The system ensures that the correct billing quantity is passed from the mirror document to the billing document by using the item category settings and copy controls. The item category settings control whether the billing document can be created with or without a mirror document, and the copy controls determine how the billing quantity information is passed.
Outlines
🛒 Understanding Third-Party Processing in SAP
The first paragraph introduces the concept of third-party processing, where a company orders goods from a vendor when stock is unavailable. The process involves creating a sales order in SAP, which then automatically generates a purchase order (PO) sent to the vendor. The vendor delivers the goods to the customer and sends an invoice to the company, which in turn raises an invoice to the customer. The paragraph also mentions the setup of item categories and controls in the system to manage third-party transactions effectively.
📄 Configuring Sales Document Types for Third-Party Sales
This paragraph delves into the configuration settings within SAP for managing third-party sales. It explains creating new sales document types and item categories, and the importance of maintaining these settings to ensure proper handling of vendor invoices and customer billing. The distinction between shipping notifications is highlighted, with an emphasis on the need for dummy invoices in certain scenarios to facilitate payments from customers before actual invoices are received from vendors.
🔄 Setting Up Scheduling and Copy Controls for Third-Party Transactions
The third paragraph focuses on the setup of scheduling and copy controls within SAP for third-party transactions. It details the creation of item categories and the assignment of scheduling categories to control the automatic generation of purchase orders and other related documents. The paragraph also discusses the implications of these settings on the creation of inventory documents and the importance of configuring these controls to streamline the third-party sales process.
🔗 Creating Purchase Orders and Managing Vendor Relationships
This segment outlines the steps for creating purchase orders in SAP, starting from the sales order and moving through the configuration of the purchase order process. It covers the setup of purchase organizations, the assignment of company codes, and the linking of these elements to facilitate the purchase order creation. The paragraph also touches on the importance of configuring the system to handle purchase requisitions and the subsequent generation of purchase orders based on these requisitions.
📑 Generating and Managing Invoices in Third-Party Sales
The fifth paragraph discusses the process of generating and managing invoices in third-party sales scenarios. It explains the conditions under which invoices can be created, the importance of maintaining mirror documents, and the system controls that govern the creation of invoices based on the quantity and billing information from mirror documents. The paragraph also highlights the system's response to attempts to create invoices without the necessary mirror documents and the adjustments made to the system to allow for invoice creation under specific conditions.
🛠️ Adjusting System Controls for Invoice Generation
This paragraph addresses the need to adjust system controls within SAP to allow for the generation of invoices in third-party sales without mirror documents. It describes the changes made to item categories and copy controls to enable the system to accept invoice creation based on order and billing quantities. The paragraph provides a step-by-step guide on how to implement these changes and the impact of these adjustments on the invoice creation process.
🚀 Finalizing the Third-Party Process and Upcoming Topics
The final paragraph wraps up the discussion on the third-party process by highlighting the importance of updating stock levels after goods receipt and the conditions under which the system allows invoice creation to the customer. It also teases the next topic to be covered in the series, the IPO process, and encourages viewers to subscribe for more content and support the channel.
Mindmap
Keywords
💡Third Party Process
💡Sales Order
💡Purchase Order (PO)
💡Goods Receipt (GR)
💡Invoice
💡Item Category
💡Scheduling Category
💡Copy Control
💡Shipping Notification
💡Goods Issue (MIGO)
💡Configuration
Highlights
Third party process in SAP SD explained, where a company informs a vendor to dispatch goods to a customer when stock is unavailable.
In SAP, creating a sales order automatically generates a purchase order (PO) sent to the vendor under the third party process.
Vendor delivers goods to the customer and sends an invoice to the company, which then raises an invoice to the customer.
Standard item category for third party transactions and controls in TAS and scheduling category with copy control.
Purpose of configuration in SAP for third party sales, including creating sales document types and item categories.
Difference between shipping notification and without shipping notification in third party process.
Creating a sales order in SAP for third party transactions, including document types and item categories.
Explanation of the controls in scheduling category and how they affect the generation of purchase orders and inventory documents.
How to configure accounting document types and schedule categories for third party sales in SAP.
The process of creating a purchase requisition and purchase order in SAP for third party transactions.
Configuration needed for creating a purchase order in SAP, including linking to company code and assigning plant.
Creating a mirror document in SAP after a purchase order is created for third party transactions.
The importance of maintaining tax codes and payment terms when creating purchase orders in SAP.
How to create an invoice in SAP for a third party transaction, including controls for billing quantities.
The impact of item category settings on the ability to create billing documents and invoices in SAP.
Demonstration of creating an invoice in SAP without a goods receipt for third party transactions.
Process of creating a goods receipt and invoice in SAP for third party transactions with shipping notification.
Final steps in the third party process in SAP, including adjustments in item categories and copy controls for billing.