THIRD-PARTY SALES

Introduction
In third-party sales the company transfers the sales order to an external vendor. This vendor delivers the goods directly
to the customer and invoices the company. The customer receives an invoice from the company’s sales office.

Some of Prerequisite configuration

1. Create Purchasing organization
Path: SPRO - Enterprise Structure- Definition-Materials Management- Maintain Purchasing Org.

2. Create purchasing group

Path: Materials Management - Purchasing - Create purchasing group

3. Assign Purchasing Org. to company code*

Path: SPRO - Enterprise structure - Assignment - Materials management - Assign purchasing organization to company
code.

4. Assign purchasing organization to plant

Path: SPRO - Enterprise structure - Assignment - Materials management - Assign purchasing organization to plant

5. Maintain purchasing area

Path: SPRO - Materials Management - Purchasing - Maintain Purchasing Area

6. Maintain Purchasing Area Determination*

Path: SPRO - Materials Management - Purchasing - Purchasing Area Determination

7. Create Vendor Account Group

Path: SPRO - Financial Accounting - Accounts Receivables and Accounts Payables - Customer Accounts - Vendor
Accounts - Master Data - Preparations for Creating Vendor Master Data - Define Account Group

8. Number range assignement to Vendor Account Group

Path: SPRO - Financial Accounting - Accounts Receivables and Accounts Payables - Customer Accounts - Vendor
Accounts - Master Data - Preparations for Creating Vendor Master Data - Assign Number Rangers to Vendor Group

9. Some other critical factors involved

Refer the following:
Key Factors in Configuartion for Third-party Sales
Some Prerequisite master data preparation
1. Create Third-Party related Material Master
TCode: MM01

Maintain:

Industry Sector:Retail
Material Type:Trading goods (KMAT)

Views to maintain in material

In Basic data 1:

Maintain BANS in Gen/Itemcatgroup

In sales: Sales org. 2:

Maintain BANS In item category Group

In Sales: General/Plant:

Maintain KP in Availability check

In Purchasing:

Enter the purchasing group.

Click on the Autom. P0

2. Create Vendor Master Data for Third-Party Sales

TCode: XK01
provide the details like Company code, Purch. Org., & Account Group
and start creating Vendor.

3. Create Vendor Info Record (if required)

TCode: ME11
Enter the Vendor no. Material no., Purchasing org. and Plant and Create Info Record.

Process flow
 Step: 1 Create Sales Order
Use TCode: VA01
Enter the

 Sold to Party,
 Ship to party
 Customer PO no. &
 Matl. No. (Third party material)
 Ordered Qty.
A screen with the following details will get created.
Then click on the continue button
Pick the Schedule lines.
A screen will be displayed with Delivery date, Rounded qty. and Confirmed qty.
Note: Before saving the sales doc. Purchase requisition no. will not get created

Save the Sales Order.

On saving the sales order, purchase requisition is generate in the back ground.

To know the purchase requisition number, either go schedule line tab in item level of the sales order and check in
procurement tab or go sales order in status overview.

Step: 2 Check Purchase Requisition (PR)

Use TCode : ME53N

Step: 3 Adopt Purchase Requisition into Purchase Order or create PO with

reference to PR
Use TCode: ME21N
Keep the standard order (Which you have defined in the Document type)
Enter the purch. Org.
Purch. Group. and Company code
Enter the Purchase Requisition no.
After Entering the Details, Press Enter Button
A screen as appears with all the details like Matl. Po. Qty, Deliv. Date, Net price Curr etc.
Then Save the PO.
Hence PO is created
 Step: 3 Release the PO. Number. (Based on release stategy in PO type used)
TCode: ME29N
Now Release the Order.
On release it will give following message
"Purchase Order no. xxxxxxxxx changed"

Step: 4 Post Invoice Receipt

Use TCode: MIRO
This done once you receive the vendor's invoice.
Basic Data Tab (Header Level) - Enter Invoice Date, Reference No, Amount (tax inclusive) and Tax amount.
PO Reference Tab (Item Level) - Enter the purchase order number
Check at the header, if the balance is zero and the green indicator is on. If yes, check the line items which have to be
posted else correct the amount and/or tax amount to make the balance zero.
Save the invoice receipt document

Step: 5 Generate invoice for Third-party sales order

Use TCode VF01
This to create the billing document which will be send to the customer as request for payment.
Provide sales document number and press enter.
System will take you to billing overview screen.
Save the document to create billing doc.
Release the billing Doc to accounts, if required.
 sd

IPO: in IPO unlike third party sales order vendor delivers the goods to the business ,Business in
turn delivers goods to the customer. General Item cat grp - "BANC" in MMR determine that
scenario is an IPO.
Example: Based on requirement based on sales order distributor generate PO at send to vendor,
purchase material from vendors to increase their sale revenue and vendor deliver material to
distributor ,finally distributor deliver material to customers according to their requirement.
VOV7 of TAB:
TABANCNIL+NIL=TAB
special stock-E,Billing Relevance-A,Pricing-X
VOV6 of CB
mov type-601
as business receive the stock and it should be delivered to sales order movement type should be
assigned.
Order type-NB,Item cat-0,acc assign cat - E,check item rel for delivery
check pur req,delivery sch
As the business has to receive the goods from the vendors and business has to delivered the
goods to customers.
system has to create delivery schedule in purchasing document.It should be activated.
process flow: IN>QT>OR>MIGO>LF>F2
go to VA01 and raise the sales order
go to ME21N and raise the PO with ref to P.req No.
go to MIGO, check line item,click on post icon
go to MMBE,check the balance stock
go to MIRO,
specify the PO number with ref to PO with this invoice is going to be verifies by MM and save it.
go to VL01 and initiate outbound deliver
the do VF01 and raise invoice.
go to Va02 check document flow
and check stock in MMBE. zero stock after PGI.
Regards,
Krishna.
1

SAP Credit Management Tutorial: OVA8

Credit Management is a process in which Company sells a product /
service to customers on credit basis. The company collects payments from
customer at a later time , after sale of product. The amount of credit  fixed 
by a company for a customer is  called credit limit. The customer can
Purchase the product from a company within the credit limit, and when the
credit limit is crossed, order is blocked by the system.

Example- Consider a Company creates a credit limit for Customer of

200,000. Customer can purchase the product from the company on credit
till the credit limit  200,000 is reached.Customer gives an Order # 1 of
amount  100000. Again Customer gives an Order # 2 of the amount
1,50000. Now, the  total open order crosses credit limit of a customer.Order
2 is   blocked by the system due to credit limit reached.
  Here customer ordered a total of Rs. 2,50,000,while a customer credit
limit is Rs. 2,00,000.Here order 2 is over to the credit limit of a customer.
So the order 2 will be blocked by the system.Credit limit can be different for
each customer .

Types of credit checks:

1. Simple credit check:  Simple Credit Check = Value of all Open

Items + Value of the Current Sales Order. Note: Open Items are
invoices for which company has not received payment.

 2. Automatic Credit check - Automatic credit check allows  you to

evaluate a transaction based on the credit rating of the customer, and
ensures appropriate further processing of the transaction document. The
credit limit check starts either automatically when you save a document or
by selecting Check Credit. Automatic credit checks are of 2 types-

1. Static Credit Check (Check for  credit limit against total value of open
sales order  + open delivery not invoiced + billing value of open billing
document  not passed at accounting).
2. Dynamic Credit Check (Check for credit limit against open sales
order not yet delivered + open delivery not invoiced + billing value of
open billing document  not passed at accounting + passed but not
paid bill amount).

Step 1) Set Credit Check

1. Enter T-code OVA8 in command field.

2. Click On New Entries button.

 Step 2)

1. Enter Credit Control.

 2. Check credit Check option.
3. Enter Credit limit validity period.
4. Check Static option .
5. Check open orders and deliveries.

Step 3)

Click on save Button.

SAP Stock Transport Order and Stock

Transfer Process

Large companies having many plants in different geographical locations

commonly require stock movement from one plant to another. For this purpose, SAP
ERP has a special process with SAP stock transport order (STO) that enables to
move stock from one plant to another or between different storage locations of
plants.

For example, in one of my trading client, we used to import materials from abroad in
big containers and then those containers were unloaded into one big branch (plant)
as it was cost efficient to import materials in bulk to one location. Next, other smaller
branches (plans) raised SAP stock transport order (STO) to purchase stock from big
branch for the quantity required. The big branch dispatched the quantity against the
STO on the mentioned delivery dates.

In the below screenshot, you can see a diagram illustrating the stock transfer
process. STO is raised by a receiving plant and sent to a supplying plant. The
supplying plant then delivers the material, which in the SAP system will be shown as
stock in transit. When the receiving plant receives the material, goods receipt takes
place at the receiving plant. There is no invoicing, as the stock is
transferred between plant that are part of the same company.

Stock Transfer with SAP Stock Transfer Order (Example)

How to Create SAP Stock Transport Order?

To create a stock transport order in SAP, please follow the steps described below.
First, either start the transaction ME21N or navigate to the following path in SAP
menu: Logistics – Materials Management – Purchasing – Purchase Order – Create –
ME21N – Vendor/Supplying Plant Known.
 Menu
Path for ME21N Transaction

Stock transfer process uses the standard transaction ME21N for creating purchase

orders (PO), where we trigger STO process by selecting document type = Stock
Transport Order as shown on the screenshots below.
 ME

21N – Create a Purchase Order Select Stock Transport Order as the

Document Type

Here you need to provide your supplying plant. As mentioned above, the supplying
plant in our example is the big branch which imported the stock and has stock
available. You also have to provide your purchase organization, purchase group and
company code as show on the screenshot below. Our tutorials about SAP MM
organizational structure should be helpful in learning more about purchasing
organization and other MM organizational units.

Enter Supplying Plant, Purchasing Organization, and Company Code in STO

In the item overview screen below, you need to provide the material that you would
like to procure from the supplying plant along with the plant number which is ordering
this material, quantity, storage location and delivery dates as shown below:

Items of Stock Transport Order

If you have any additional charges which needs to be added to the cost of the
material, you should provide the details in the conditions tab. For instance, it is
possible to add freight charges as shown below:

Pricing Conditions of Stock Transport Order

Now, your stock transport order is ready and to cross check for any errors in your
STO, click on   button which will tell you if everything is correct in your document.
If not, then a red button will come up notifying you about error(s) in the document
that needs to be fixed before you can save the document. Once all issues are fixed,
you click the   button, which will save the document. The SAP system will provide
you with SAP generated document number as shown below notifying that the
document has been created.

SAP Stock Transport Order has been

Created

Goods Issue Against SAP Stock Transport Order

Once the STO is created, the next step is to do a goods issue against the STO
raised above. Go to the transaction MIGO or navigate to the following path in SAP
menu: Logistics – Materials Management – Inventory Management – Goods
Movement – MIGO.
 MIGO Transaction in SAP Menu

In MIGO, it is necessary to do goods issue against a purchase order, with a

movement type 351 which is used for moving materials from supplying plants to
stock in transit of receiving plants.

Goods Issue in MIGO Transaction

Here you need to enter the number of STO, set OK checkbox for the item and then
click on Post button which will post your goods issue and provide you a message
that a material document was created (see screenshots below).
Set OK Checkbox for the Item A Material Document for
Goods Issue against SAP Stock Transport Order was Created

Goods Receipt Against SAP Stock Transport Order

Now, the last step is to do goods receipt in the receiving plant when the goods
physically arrive there. Goods receipt is also done in MIGO transaction. It is
necessary to perform goods receipt against a purchase order using the movement
type 101 as shown below. Then, set the OK checkbox next to the material item and
finally post the document by pressing Post button. The system will provide you a
message that the material document was posted.
Goods Receipt against STO A Material Document for
Goods Receipt against SAP Stock Transport Order was Created

Did you like this SAP MM tutorial? Have any questions or comments? We would love
to hear your feedback in the comments section below. It’d be a big help for us, and
hopefully it’s something we can address for you in improvement of our free SAP MM
tutorials.

SAP IDOC Tutorial: Definition,

Structure, Types, Format & Tables
What is an IDOC?
IDOC is simply a data container used to exchange information between
any two processes that can understand the syntax and semantics of the
data.

In other words, an IDOC is like a data file with a specified format which is
exchanged between 2 systems which know how to interpret that data.

IDOC stands for " Intermediate Document"

When we execute an outbound ALE or EDI Process, an IDOC is created.

In the SAP System, I DOCs are stored in database. Every IDOC has
a unique number(within a client).

In this tutorial you will learn:

  What is an IDOC?

 Structure of an IDOC

 IDOC Types

 What is a Segment?

 What is Extension IDOC type?

 IDOC Views

 Partner Profiles

 Port

 The Outbound Process

 The Inbound Process

Key Features

 IDOCs are independent of the sending and receiving systems.

(SAP-to-SAP as well as Non-SAP)
 IDOCs are based on EDI standards, ANSI ASC X12 and EDIFACT.
In a case of any conflict in data size, it adopts one with greater
length.
 IDOCs are independent of the direction of data exchange e.g.
ORDERS01: Purchasing module: Inbound and Outbound
 IDOCs can be viewed in a text editor. Data is stored in character
format instead of binary format.

Structure of an IDOC
  

The I doc structure consists of 3 parts -

1. The administration part(Control Record)- which has the type of idoc,

message type, the current status, the sender, receiver etc. This is
referred to as the Control record.
2. The application data (Data Record) - Which contains the data. These
are called the data records/segments.
3. The Status information (Status Record)- These give you information
about the various stages the idoc has passed through.

You can view an I-DOC using transaction WE02 or WE05

  

As seen the screenshot above IDOC record has three parts Control, Data
and Status. Let's look into them in detail - Control Record

 All control record data is stored in EDIDC table. The key to this table
is the IDOC Number
 It contains information like IDOC number, the
direction(inbound/outbound),  sender, recipient information, channel it
is using, which port it is using etc.
 Direction '1' indicates outbound, '2' indicates inbound.

Data Record

 Data record contains application data like employee header info,

weekly details, client details etc
 All data record data is stored in EDID2 to EDID4 tables and EDIDD is
a structure where you can see its components.
 It contains data like the idoc number, name and number of the
segment in the idoc, the hierarchy and the data
 The actual data is stored as a string in a field called SDATA, which is
a 1000 char long field.

Status Record

 Status record is attached to an I-DOC at every milestone or when it

encounter errors.
  All status record data is stored in EDIDS table.
 Statuses 1-42 are for outbound while 50-75 for inbound

IDOC Types
An I DOC Type, (Basic) defines the structure and format of the business
document that is to be exchanged. An IDOC is an instance of an IDOC
Type , just like the concept of variables and variables types in
programming languages. You can define IDOC types using WE30
 

What is a Segment?
A Segment defines the format and structure of a data record in I-DOC.
Segments are reusable components.

For each segment SAP creates

 Segment Type (version independent)

 Segment Definition (version dependent)
 Segment Documentation

The last 3 characters is the version of the segment

Definitions keep changing as per the version but the segment type remains
the same.

Transaction:WE31
  

What is Extension IDOC type?

An IDOC is of 2 types:-

1. Basic
2. Extension

 
SAP provides many a pre-defined Basic IDOC Types which can not be
modified. In case you want to add more data to these restricted basic type
you may use an extension type. Most of the times you will NOT use
extension.

Documentation
Each IDOC are thoroughly documented in transaction WE60
  

Message Type
A message represents a specific type of document that is transmitted
between two partners Ex. Orders, orders responses, invoices etc

An idoc type can be associated with many message types

Also, a message type can be associated with different idoc types.

Transaction WE81
 
  

IDOC Views
An IDOC type can be used for more than one message type, which results
in IDOCs containing more fields than required for a particular message
type.
IDOC views are used to improve performance in generating IDOCs to
ensure only the relevant segments are filled with data. IDOC Views are
important only for Outbound Processing.
  

Partner Profiles
A partner is defined as a business partner with whom you conduct business
and exchange documents

In the partner profile of a partner that we exchange Idocs with, we maintain

the parameters that are necessary for exchanging the data. The transaction
used is WE20.
Port
The port defines the technical characteristics of the connection between
your SAP system and the other system you want to transfer data with
(subsystem). The port defines the medium in which data is exchanged
between the 2 systems.

There are different types of ports. The 2 most commonly used are
the TRFC ports used in ALE  and File ports which EDI uses.

For TRFC ports we have to give the name of the logical destination created
using SM59.

When using file port you can specify the directory where the IDOC file
should be placed. The other system or the middleware will pick up the file
from here. The Function module can be used to generate a file name for
the idoc. While Testing you can use "Outbound file" to specify a constant
file name. The tab "outbound trigger" can be used to supply information if
we want to trigger some processing on the subsystem when an idoc is
created at this location. We have to specify the command file name and the
directory which has to be run.
  

This is so CONFUSING!
Let's understand the process of creating an IDOC with an example -

 Whenever a Purchase Order (PO) is created we want to send the

IDOC to a vendor.
 The PO is sent in the form of an IDOC to the vendor (partner). That
partner has to be EDI enabled in that system. SAP should realize that
it could send doc to this vendor electronically.
 The PO sent as an outbound idoc by the customer will be inbound
idoc for the vendor. The SAP system on the vendor's side can
process this to create an application document (a sales order) on
their system.
 Quotation, RFQ, PO, SO, Invoice, delivery note etc are some of the
commonly exchanged documents through IDOC

The process of data transfer out of your SAP system is called

the Outbound process, while that of data moving into you SAP system is
called Inbound process. As a developer or a consultant who will be
involved in setting up theses process for your organization. Here are the
steps how to set them up-

The Outbound Process

Steps Involved -
 1. Create segments(WE31)
2. Create an idoc type(WE30)
3. Create a message type (WE81)
4. Associate a message type to idoc type(WE82)
5. Create a port(WE21)
6. If you are going to use the message control method to trigger idocs
then create the function module for creating the idoc and associate
the function module to an outbound process code
7. Otherwise, create the function module or stand-alone program which
will create the idoc
8. Create a partner profile(WE20) with the necessary information in the
outbound parameters for the partner you want to exchange the idoc
with.Trigger the idoc.

The Inbound Process

Steps Involved-

1. Creation of basic Idoc type (Transaction WE30)

2. Creating message type (Transaction WE81)
3. Associating the Message type to basic Idoc type (Transaction WE82)
4. Create the function module for processing the idoc
5. Define the function module characteristics (BD51)
6. Allocate the inbound function module to the message type(WE57)
7. Defining process code (Transaction WE42)
8. Creation of partner profile (Transaction WE20)

Application Link Enabling (ALE)

Posted by: Margaret Rouse

WhatIs.com

   

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Application Link Enabling (ALE) is a mechanism for the exchange of

business data between loosely-coupled R/3 applications built by customers
of SAP, the enterprise resource management program. ALE provides SAP
customers with a program distribution model and technology that enables
them to interconnect programs across various platforms and systems.

There are three layers in the ALE system: application services, distribution

services, and communication services. The vehicle for data transfer is
called an IDoc (intermediate document), which is a container for the
application data to be transmitted. After a user performs an SAP
transaction, one or more IDocs are generated in the sending database and
passed to the ALE communication layer. The communication layer
performs a Remote Function Call (RFC), using the port definition and RFC
destination specified by the customer model. The IDoc is transmitted to the
receiver, which may be an R/3, R/2, or some external system. If the data is
distributed from a master system, the same transaction performed by the
sender will be performed by the receiving system, using the information
contained in the IDoc.

Changes made to fields in master data tables can be set to trigger

distribution of the changes to slave systems, so that multiple
database servers can update the same information simultaneously. IDocs
carry information directly between SAP systems. In order to communicate
with a non-SAP system, an IDoc is first transmitted to an intermediary
system that translates the data to a format that will be understood by the
receiver. Return data also passes through the translating system, where it
is again encapsulated into an IDoc.

ALE stands for Application Link Enabling.ALE is used for exchanging

business data between different systems.This form of communication
requires IDOC interface.The IDoc interface is made up of the definition of a
data structure and the processing logic of this data structure. The data
structure is the IDoc. The IDoc is the general exchange format of the
communicating systems.ALE supports the configuration and operation of
distributed applications. It allows the controlled exchange of business
messages between distributed applications with consistent data retention.
The coupling between the distributed systems can be either narrow or
loose.The application integration is not achieved through a centralized
database. Instead, the applications access a local database. Data retention
is redundant. ALE ensures the distribution and synchronization of master,
control, and transaction data through asynchronous communications. ALE
uses synchronous connections to read data.