Third Party Sales in SAP SD Understanding the Process and Key Concepts Presented by: [Your Name] | Date: [Insert Date]
Agenda What is Third Party Sales? Key Business Scenario Process Flow in SAP SD Important Configuration Elements Document Flow Integration with MM & FI Example Walkthrough Benefits & Challenges Q&A
What is Third Party Sales? A sales process where the vendor delivers goods directly to the customer. The selling company doesn’t hold inventory or deliver the goods. Billing is still done by the selling company to the customer.
Business Scenario Customer places an order with your company. Your company creates a Purchase Order to a third-party vendor. Vendor delivers directly to the customer. Vendor invoices your company; your company invoices the customer.
SAP SD Third Party Process Flow Create Sales Order (Item Category TAS) Automatic Purchase Requisition Convert PR to Purchase Order (in MM) Vendor ships goods to the customer Goods Receipt (optional) Vendor Invoice Billing to Customer
Key SAP Configuration Item Category: TAS (Third Party Item) Schedule Line Category: CS - No delivery, no movement of stock Account Assignment: Relevant for costing (account assignment category)
Document Flow Sales Order → Purchase Requisition → Purchase Order → Vendor Delivery → Vendor Invoice → Billing Document
Integration with MM & FI MM (Materials Management): Handles the Purchase Order and Vendor Invoice FI (Financial Accounting): Captures vendor invoice posting and customer billing Seamless cross-module integration
Example Walkthrough Customer orders 100 units of a product. PO is created for the vendor. Vendor delivers 100 units directly to customer. Vendor invoices your company. You create a billing document for your customer.
Benefits & Challenges Benefits: - No inventory holding - Quick fulfillment - Reduced logistics burden Challenges: - Limited visibility of delivery - Reliance on vendor timelines - Integration and timing issues
Summary Third Party Sales streamline non-stock order fulfillment. SAP SD automates much of the process with integration to MM and FI. Proper configuration is essential for smooth operations.