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Third Party process explained

In general, When the business receives an order from a customer and in return business transfer the order to the manufacturer such that OEM delivers goods directly to the customer.

This process is termed as third party process where goods will be directly dispatched to the customer.


Below are the trigger points :

1.Item Category - TAS with billing relevance as ' F' Order related billing with Invoice Quantity
2. Schedule line category - CS with account assignment category as '1' and Item Category '5'

Check P. Req Del. Sched if we require passing Sales order schedules to Purchase Requisition
3. Assign Order related Billing type at document type level.
4. Billing Quantity at Copy Control should be ' F'

Based on the above setting Purchase Requisition gets generated upon save of sales order.

As Account assignment category '1' is not relevant for goods receipt so upon Purchase order invoice document will be done.

Once vendor invoice is received then customer invoice will be generated.

If business requires Customer invoice to be generated upon Logical GR then account assignment category should be maintained as ' Sales Order' at schedule line category level

And Billing relevance should be 'G' Invoice against Goods receipt quantity at Item category level.
Billing Quantity at Copy Control should be ' E'

In this case upon Goods receipt Customer invoice can be generated against GR quantity.

If business requirements are to generate auto Purchase order the below additional setting need to be done.

1. Auto PO check box needs to be enabled at  Material and Vendor Master Data level
2. Source List and Info record need to be maintained for the specific material and Vendor combination.

But how come system control creation of customer invoice before dispatching goods to the customer ??

This will be done by copying requirement ' 12' at copy control item category level.

If this check is taken off, then we can raise customer invoice even before customer delivery.

Tracking of serial numbers cannot be done through standard process and this requires enhancement  to be done at GR level upon material document posting.
Thank You.



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