Third Party Procurement 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

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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).