Third party Order

Introduction:

An order is a third party order when your company does not deliver the items requested by a customer. Instead, you provide the order details to a third party vendor who further ships the goods directly to the customer and send invoice to you. The order can be completely or partially completed by a third party vendor.

Practical Scenario:

Details:

   

When you save a sales order that contains one or more third-party items, the system automatically creates a purchase requisition in Purchasing. Each third-party item in a sales order automatically generates a corresponding purchase requisition item. During creation of the requisition, the system automatically determines a vendor for each requisition item. If a sales order item has more than one schedule line, the system creates a purchase requisition item for each schedule line.

Purchase orders are created from purchase requisitions in the usual way. For more information about creating purchase orders, see the Purchasing documentation. During creation of the purchase order, the system automatically copies the delivery address of your customer from the corresponding sales order. In a sales order, you can enter purchase order texts for each third-party item. When you create the corresponding purchase order, the texts are automatically copied into the purchase order. The number of the purchase order appears in the document flow information of the sales order.

Effect on delivery schedule:

When scheduling automatic trigger of third party orders system also considers your own purchase organization time to process the order, hence, may lead to delivery delays.

Key Points to remember:

·         Concept with one real life example

·        When a third party item/ material is involved in sales order the system automatically creates purchase requisition.