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Third-Party Sales Without Shipping Notification

The document outlines the third-party sales process in SAP SD when a shipping notification is not received from the vendor. It details the steps from creating a sales order to customer billing, emphasizing that the goods receipt step is skipped, and provides key configuration changes needed for this process. The process includes creating a purchase requisition, converting it to a purchase order, and handling vendor and customer invoicing without a goods receipt.

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BIDUR KUMAR
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3 views

Third-Party Sales Without Shipping Notification

The document outlines the third-party sales process in SAP SD when a shipping notification is not received from the vendor. It details the steps from creating a sales order to customer billing, emphasizing that the goods receipt step is skipped, and provides key configuration changes needed for this process. The process includes creating a purchase requisition, converting it to a purchase order, and handling vendor and customer invoicing without a goods receipt.

Uploaded by

BIDUR KUMAR
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Third-Party Sales Process in SAP SD Without Shipping Notification

In a standard third-party sales process, the vendor ships goods directly to the customer and
provides a shipping notification (confirmation).

However, in some business scenarios, companies do not receive a shipping notification


from the vendor. In this case, the billing and procurement process remains the same, but
the goods receipt (GR) step is skipped. ❌

Process Flow of Third-Party Sales Without Shipping


Notification
1️. Create Sales Order (VA01)

• T-code: VA01 (Create Sales Order)


• Document Type: OR (Standard Order)
• Item Category: TAS (Third-Party) – Determined by Material Master (BANS). Or
change the Item Category to TAS.
• Schedule Line Category: CS (Triggers automatic PR creation)

✅ Result: The system automatically creates a purchase requisition (PR) for


procurement.
2️. Convert PR to Purchase Order (ME21N or ME59N)

• T-code: ME21N (Manual) or ME59N (Automatic PO creation)


• PR is converted into a purchase order (PO)
• PO Type: NB (Standard Purchase Order)
• The vendor is instructed to ship the goods directly to the customer.

✅ Result: PO is sent to the vendor.


ME59N

Document Flow.
3️. Vendor Ships Goods to the Customer

• The vendor delivers goods directly to the customer.


• No shipping notification (ASN) is received.
• Since there is no goods receipt (MIGO) required, the GR-based invoice
verification flag should not be active in the PO.

✅ Result: The company is not notified when the vendor ships the goods.

4️. Vendor Invoice Verification (MIRO)

• T-code: MIRO (Invoice Verification)


• Vendor sends an invoice for the delivered goods.
• The system posts a liability to the vendor account.

✅ Result: The company processes payment to the vendor.


5️. Customer Billing (VF01)

• T-code: VF01 (Create Customer Invoice)


• The invoice is generated based on the sales order.
• The company bills the customer even though no GR was posted.

✅ Result: The revenue is recorded in FI.


Key Configuration Changes for Third-Party Without
Shipping Notification
✔ Material Master (MM01/MM02)

• Item Category Group: BANS (Third-Party)


• Purchasing View: Enable Automatic PO

✔ Item Category (VOV7)

• TAS (Third-Party) – Mark "Create PO Automatic"


• Billing Relevance – F

✔ Schedule Line Category (VOV6)

• CS – No movement type, triggers PR

✔ Purchase Order Changes (ME22N)

• Deactivate GR-based Invoice Verification


• Ensure "Goods Receipt" is unchecked in the PO
Summary of Documents Created

Sales Order – VA01 (Triggers PR)


Purchase Requisition – Auto-generated (Converted to PO)
Purchase Order – ME21N (Sent to Vendor)
Vendor Invoice – MIRO (Invoice Posting)
Customer Invoice – VF01 (Billing to Customer)

✅ Third-Party Process Without Shipping Notification Completed!

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