Third Party Order Processing Session 102 Susan Delaney OSI Industries, Inc Aurora, IL.

Third Party Order Processing

Session 102

Susan Delaney

OSI Industries, Inc

Aurora, IL

OSI Industries, Inc

• Food Processor

• Corporate offices in Aurora, IL

• Privately held company

• Facilities worldwide

• 5 locations on SAP

• Upgraded to 4.6C Thanksgiving 2002

• SD, MM, QM, PP/PI, FI/CO, soon WM

What are 3rd Party Sales Orders??

• In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer. The vendor bills you. You bill the customer.

How does it work at OSI?

• Sales Order (VA01) triggers PO Requisition creation.

• Auto create PO (ME59). Mail PO.

• Invoice verification to vendor (MIRO).

• Invoice customer (VF04).

How does it work at OSI?

• Started with standard SAP documented scenario on three material numbers for a specific customer from one vendor.

• Expanded functionality to a unique internal process.– Customized

Configuration• SD>Sales>Sales Documents>Sales Document

Item>Define Item Categories• SD>Sales>Sales Documents>Schedule

Line>Define Schedule line category• MM> Purchasing>Account Assignment >Account

Assignment Categories ( definition & assignment)• MM>Valuation/Acct Assignment>Account

Determination>Account Determination > Configure Automatic Postings

• MM>Purchasing>Create Purchasing Groups

Be sure to assign this item category to your order types at the appropriate places.

Create PO Automatic

Acct Modifier - type in the name you want

Some of these entries may need to be changed from SAP default.

Decide if you want the MIRO to trigger VF04 entry.

Standard SAP - notice the X in acct assignment

Normal SD transactions have a modifier of VAX or VAY.

Purchasing Group

• We decided to add a separate purchasing group for third party transactions so we could handle and review the transactions easier in MM.

History

• Plant initially did not tell us they had this business scenario. They were entering a standard sales order, receiving inventory into stock that was not really coming into stock, and shipping it out. An error occurred with posting during a period close and we discovered what they were doing.

History

• Our team talked this through and determined:

Should not be receiving inventory into the system that was not coming into inventory.

Hit COGS at invoice verification in MM.

Invoice verification triggers the SD billing for period end controls.

Master data

• Vendor needs ‘auto PO’ turned on, if using. Also add the purchasing group entry

• Material needs ‘auto PO’ turned on, if using. Also add the purchasing group entry.

• MM Info record needs creation with that purchasing group reference.

Output

• Need to put code into output program for PO’s (MEDRUCK) to pull customer PO # from SD sales order into output Purchase Order.

• Needed to use most current copy of MEDRUCK for ship to address data.

User Exit

• MV45AFZB– USEREXIT_MOVE_FIELD_TO_ME_REQ.If the order went into credit hold, the person releasing the credit hold had their name on the Requisition. We did not want that.

Moved code into routine that moved the ID of the creator of the sales order into EBAN-AFNAM.

Standard Transaction

• Enter standard sales order.

• Change item category to TAS or your custom item category.

• Save order. You can see the PO Req # in the item schedule line procurement area.

This screen is from the procurement data button of the schedule line screen. You have to save the order before this data shows up.

Vendor

Auto PO Creation

• Transaction ME59 runs a job to pull any Requisition with the proper purchasing group and auto PO settings into a new PO.

• Make sure you check off box for “per requisition” or you might get more than one sales order on the PO ( not available in 31H).

Shipment

• The PO is sent to the vendor.

• The vendor sends the material(s) to our customer.

• The vendor sends us the bill and backup paperwork.

• MM Invoice verification is keyed in.

Vendor

Weight differences can be accounted for on subsequent item tabs, if required.

Vendor

SD Invoice

• After MM invoice verification document posted, the SD billing document becomes available on the billing due list.

Prices & more

• SD documents have SD customer pricing.

• MM documents have MM pricing.

• Having the MM posting trigger the SD invoice should guarantee Sales Revenue & COGS during the same accounting period.

• Calls made to the vendor at period end get paperwork faxed.

Then they had a new scenario.

Surprise!

New Custom 3rd Party

• New internal request to process invoice payments for an affiliate and produce an SD invoice.

• Multiple daily transactions.

• SD bill at cost plus.

• Each invoice has a different cost.

New 3rd Party

• Create a new order type Z3RD with ZAS default item category.

• Create a new transaction ZME59.

• Create new price condition that referred to cost along with new pricing procedure.

New 3rd Party

• VA01 Enter order

• ME57 Assign Vendor

• ZME59 Create PO

• ME22N Change Price on PO (triggers SD pricing on invoice)

• MIRO MM Invoice Verification

• VF04 Nightly Invoicing

New 3rd Party

• Greatly reduces workload of entry person.

• Invoices due are visible in A/R.

Session 102

Questions?

Thank you for coming to this session!

Susan Delaney

sdelaney@osi.osigroup.com