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Process documentationThird-Party Order (TPO) Processing Locate this document in the navigation structure


In third-party order processing, your company does not deliver the article requested by the customer. Instead, you transfer the order to an external vendor, who sends the articles directly to the customer and bills you.

Sometimes, customers take orders for goods that they do not produce in-house or do not have enough capacity to produce the goods on time. In such cases, you ask another vendor to deliver the goods to your customer on your behalf.

A purchase requisition is created for each order item. The purchase requisition is assigned directly to the customer order item and cannot therefore satisfy other requirements. You do this using an account assignment for the created stock elements. These processes always refer to the original document item, which means that a purchase order item (converted from the purchase requisition) is assigned to a sales order item.

For more information about TPO in the standard ERP system, see Third-Party Order Processing.

Note Note

The system determines the stock segment for the requirement segment you maintain in the sales order based on the segmentation strategy you define in Customizing for Requirement to Stock Conversion in Define Segmentation Strategies under   Logistics – General   Segmentation  .

End of the note.


Sales Order

While creating an order, you process third-party orders through the selection (or assignment) of corresponding item categories and schedule line categories. You use TAS as the default item category. The purchase order type you define in the standard settings for the schedule line category determines that a purchase requisition with account assignment is automatically created. This happens for each item when you create a sales order. In this case, MRP does not consider TPO as a requirement.

Goods Receipt

In third-party order processing, a statistical goods receipt is necessary for general verification. Since, the stock is not valuated or the inventory is not increased, you must carry out a goods receipt.


You can process order-based based billing for TPO.