Third Party Procurement in SAP MM

Third party procurement process in SAP MM

          Third party procurement process is one of the special procurement processes. In third party procurement process, customer orders goods to a company 'X'. Company 'X' gives sales order to customer for the ordered goods. Now, company 'X' gives purchase order to vendor with customer delivery address. Vendor directly delivers goods to customer. Company 'X' pays to vendor. And company 'X' collects payment from customer.  

Third Party Procurement process in SAP MM

Steps for Third party procurement process in SAP MM

1. Create material master in MM01 t-code.

        Enter required details and in sales organization 2 view, maintain item category 'BANS'

2. Create sales order in VA01 t-code.

        Enter required details and make sure that item category as 'TAS'.

      (Because of this item category 'TAS', system creates purchase requisition in background.)

3. Go to display of sales order in 'VA03' t-code.

        Enter sales order number and click enter. Sales order will be displayed. Double click on item row and           then click on procurement button under schedule line tab and observe purchase requisition number. 

             (OR)

    Go to ME53N t-code and in search help(F4), find the purchase requisition number in the sales document       tab and observe item category as third party & account assignment category as third party.

                In delivery tab customer master record is picked but not our plant address.

4. Create purchase order in ME21N t-code.

        In item row enter purchase requisition number and enter. Observe & make sure that item category and account assignment category as third party and delivery address as customer address.

5. Enter logical Goods Receipt in MIGO t-code.

        Enter purchase order number and enter. Movement type picked as 101. In partner tab, it shows that goods are delivered from vendor to customer. No storage location. Check and post.

        Observe accounting document. Transaction keys are +KBS, -WRX.

6. Enter invoice verification in MIRO t-code.

       Enter purchase order number and enter. Enter required details and post. Observe the accounting document. Transaction keys are -KBS, +WRX

7. Create billing or customer invoice in VF01 t-code (in SD side).