Order to Cash - Third Party Order Process

Best Practice Scenario:  Order to Cash - Third Party Order Process

The Order-to-Cash - Third-Party Order Processing scenario enables your company to create sales orders that are used to ship products with or without a product specification to your customer directly from a supplier rather than from your own company. A third-party purchase request  is created automatically when you release a sales order for a product to which purchasing contracts and/or list prices have been assigned in the system. The third-party purchase order can be created automatically or manually. You can enter the supplier's confirmation data in the system when they send the delivery notification. Based on this third-party delivery, supplier invoicing and customer invoicing is triggered. You can use the Order-to-Cash (Third-Party Order Processing – Material) scenario if you always ship directly from a supplier or if you only ship directly from a supplier in exceptional cases.

Process Flow details Order to Cash - Third Party Order Process

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Roles involved to Order to Cash - Third Party Order Process

• Sales/Customer Service Representative
• Warehouse Manager
• Warehouse Operator
• Accounts Receivable Accountant

Business Value of Order to Cash - Third Party Order Process

This scenario streamlines the entire order-to-cash process for midsize companies that sell from stock and wish to fulfill rising customer demands for service and value.

You can become more profitable by responding efficiently to customer demand based on real-time availability information thereby growing revenue while decreasing cost of sales.

SAP Business ByDesign helps efficiently manage the order-to-cash process: From opportunity management, and order fulfillment through to financial settlement.

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Key Benefits of Order to Cash - Third Party Order Process

• Sales assistant function to best convert opportunities into business;
• Automatic quote and order generation, processing and flexible pricing management;
• The product availability check ensures reliability and accuracy of the confirmation data by checking customer requirement against the stock on hand and the product supply situation;
• Integrates operational processes with master data to ensure consistency between orders, shipments and invoicing;
• Scalable process for revenue recognition supporting different accounting principles;
• Built in analytics enables a drill down to the profit and loss result alongside dimensions like products, customer groups and distribution channels;

Application

• SAP Business ByDesign

Continue to review the other Business Processes SAP Business ByDesign

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