Third-party procurement is a process where a company purchases goods or services from a third-party supplier instead of producing them in-house. In SAP third-party procurement is carried out in the components SD (Sales and Distribution) and MM (Materials Management). By creating a third-party item in a sales order, purchase requisition, or purchase order, you can request that the vendor sends the goods directly to your customer.
Created for an S/4 HANA implementation project, in this document following steps are covered for the procurement of Third Party in SAP.
- Purchase Requisition will be generate during sales order creation.
- Conversion of the approved Purchase Requisition to RFQ
- Maintain RFQ
- Price Comparison
- Conversion of RFQ in Purchase Order.
- Approval of PO by the Concerned Purchase Manager
- Goods receipt for the PO.
- Vendor Invoice Entry for the PO