Third-Party Procurement (Special Procurement of SAP MM) EXPLORING THE THIRD-PARTY PROCUREMENT PROCESS In the third-party procurement process,

a company instructs a supplier to supply the required goods to a third party. Consider a scenario where an enterprise se lls and distributes wood to a furniture manufacturing firm. The enterprise procu res wood from a wood manufacturing company and asks this company to supply wood to the firm engaged in manufacturing furniture. Such a scenario demonstrates the third-party procurement process where the enterprise provides the address of th e third party to whom wood needs to be delivered. In this scenario, the wood man ufacturing company is the delivering party and the furniture manufacturing firm is the third party. The below figure illustrates this scenario to help you clear ly understand the third-party procurement process:

Enterprise Level Step 1: Create Division Spro Enterprise Structure sion Copy from Division 01 To XX Definition Logistics General Define Copy, Delete, Check Divi

Step 2: Create Sales Organization Spro Enterprise Structure Sales Organization Copy from 0001 to XXXX Go with define sales org and make necessary changes Change Currency Step 3: Distribution Channel Spro Enterprise Structure Distribution Channel Distribution Channel Copy from 01 to XX Step 4: Sales Office Spro Enterprise Structure Copy from 0001 to XXX Step 5: Maintain Sales Group Definition Sales and Distribution Maintain Sales Office Definition Sales and Distribution Define Copy, Delete, Check Definition Sales and Distribution Define Copy, Delete, Check

Spro Enterprise Structure Maintain sales group Copy from 100 to XXX Assignment

Definition Sales and Distribution

Maintain Sales Group

Spro Enterprise Structure Assignment nt / Valuation Area and Division Click Plant- Division New entries Plant Division Xxxx xx Save Click Val Area-Division New Entries Xxxx Save Click Plant- Val Area Division xx xxxx Bus. Area xxxx

Logistics General Assign Business Area to Pla

If both are already present leave or maintain it Data Comparison If any inconsistencies is there will present here Assignment Spro Enterprise Structure Assignment Sales and Distribution

Assign Sales Org to company code Assign Distribution Channel to Sales Org Assign Division to Sales Org Setup Sales Area Assign Sales Office to Sales Area Assign Sales Group to Sales Offices Assign Sales Org Distribution Channel to Plant Assign Sales Area to Credit Control Area Create Customer

T Code : XD01 Account Group: 0001 Co Code: xxxx Sales Org: xxxx Distribution Channel: xx Division: xx Enter Title: Company Name: XXXX Postal Code or City: XXXX Country: XX Transportation: Click Company Code Data Enter Reconciliation Account, Cash mgmt group, payment transaction, tolerance gr oup Click Sales area data Sales office Sales Group Click Shipping Tab Shipping Conditions 01 Click Billing Documents Tab Maintain Incoterms, Maintain Tax as 0 Save By saving this Customer will be created Create Material Master Material: XXXX Industry Sector: Mechanical Material Type: Hawa Trading Goods Select all sales views Item Catergory: BANS Transportation group : 0001 Loading Group: 0001 Material Created Create Sales Order

Order Type: OR Sales Org: xxxx Dis Channel: XXX Division: XX Sales Offices: XXX Sales Group: XXX Sold To Party: XXXX Customer Number PO number: XX In sales tab complete delivery checked All Items Material Xxx Pur Group: XXX Go to procurement tab select the line and click schedule lines fo ritem Order Quantity xxx Plant xxx

Sale order will be created Go with display VA03 Go with Procurment So Pur Req is created Create PO Item category: S Account Assignment: ThirdParty Create Invoice select the line and click procurement