Third-Party Order (TPO) Processing 

Use

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 accordingly.

Sometimes, we take orders for goods that you do not produce in-house or sometimes you 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. He will deliver the goods directly to your customer and bill you. 

As in make-to-order production  and purchase-to- order procurement, 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. In SAP AFS, these processes always refer to the item. That means that a purchase order item is assigned to a sales order item.

Features

Sales Order
While creating an order, you process third-party orders via the selection (or assignment) of corresponding item categories and schedule line categories. SAP AFS no longer supports the old set up, behavior and functionality of  item category JTAS. TAS is to be used as the default item category. Item category JTAS can be used with TAS Customizing. The purchase order type defined 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, you cannot create a purchase requisition using the MRP run.

The following are the differences when compared to the previous AFS releases:

·        AFS switches to stable standard item category TAS.

·        No requirements are created for TPO orders.

·        TPO orders can no longer be seen in transaction /AFS/MD04.

AFS Restrictions:

You cannot enter double dimensions in third-party order processing with AFS materials, meaning that at item level the dimensions mentioned should be unique.

Goods receipt

In third-party order processing with AFS materials, a statistical goods receipt is necessary for general verification.  There is neither stock valuation nor increase in the inventory, carrying out a goods receipt as such is not mandatory.

 Allocation Run

In third-party order processing, it is not mandatory to carry out an allocation run.

 Billing

Depending on sales order type customizing, you can do order related billing or invoice related billing.