SD / O2Cintermediate

SD Third-Party Sales Part 2: Configuring Item Category, Schedule Line and Requisition Determination

Key takeaway

Configure third-party sales: item category group BANS on the material, item category TAS (billing relevance F), schedule line category CS with purchasing data (order type NB, item category 5, account assignment 1), automatic PR creation and conversion to PO with source determination.

Explanation

📌 KEY POINTS
✅ Material item category group BANS (or manual switch TAN → TAS) determines TAS via VOV4.
✅ TAS: schedule lines allowed, billing relevance F (order-related based on invoice receipt quantity) in standard.
✅ CS: not delivery-relevant; purchasing data order type NB, item category 5 (third-party), account assignment category 1.
✅ Source determination (info records, source lists) enables automatic PO creation.
⚠️ Without purchasing data (vendor, purchasing group) PRs stay unconverted and orders stall.

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▶ WHERE WE ARE
Part 1 explained the process. Now configuration.

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▶ 1. ITEM CATEGORY DETERMINATION

Material Sales Org 2: item category group BANS.
VOV4: order type + BANS → TAS (manual alternatives possible).

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▶ 2. ITEM CATEGORY TAS

Billing relevance F, pricing, credit active.
Schedule lines allowed; no delivery.

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▶ 3. SCHEDULE LINE CS

Order type NB, item category 5, account assignment 1.
No availability check or requirements transfer.

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▶ 4. PURCHASING

Info record / source list for vendor.
Automatic PR → PO (ME59N) or manual conversion.
Ship-to address of customer on PO.

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▶ 5. ACCOUNT ASSIGNMENT

PO account-assigned to the sales order item (cost to sales order).

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▶ STEP BY STEP

Set BANS on the material.
Check VOV4, VOV7 TAS, VOV6 CS.
Maintain info record and source list.
Create order and auto-create PO.

✅ CHECKPOINT: the order creates a PR, ME59N converts it to a PO addressed to the customer.

Code example

ABAP Code

===== STEP 1: master data =====MM02 Sales Org 2: item category group BANS | purchasing view, info record (ME11), source list (ME01) ===== STEP 2: configuration =====VOV4  OR + BANS → TASVOV7  TAS: billing relevance F | schedule lines allowedVOV6  CS : order type NB | item category 5 | account assignment category 1 | not delivery relevant ===== STEP 3: purchasing =====ME59N automatic PO from PR | PO delivery address = customer ship-to

Real project scenario

A distributor's third-party PRs piled up unconverted because materials had no source list or info records, and buyers didn't monitor them. Orders waited days before POs went out. Maintaining info records and source lists, scheduling ME59N and monitoring open PRs cut PO creation time to hours.

Common mistakes

Missing BANS on materials.
CS without purchasing data.
No source determination.
Manual PO creation without monitoring.
Wrong billing relevance on TAS.

Best practices

Govern item category groups.
Maintain info records and source lists.
Automate PR to PO conversion.
Monitor open PRs.
Keep TAS billing relevance aligned with policy.

Interview angle

Questions: "How is TAS determined?", "What does CS control?", "How are POs created automatically?"
Strong answer: BANS → TAS via VOV4, TAS billing relevance F, CS purchasing data (NB, 5, 1), source determination and ME59N, account assignment to sales order.

Practice this lesson

Quick check

1. Third-party PRs are created but never converted into purchase orders. What is a common cause?

2. How is the item category TAS usually determined for a material?

3. Which schedule line category settings make third-party items create purchase requisitions?

Interview questions

1. Third-party orders are created but PRs are missing or never become POs. How do you analyse the configuration?

Answer it in your own words first, then compare.

2. A customer orders a mix of stocked and non-stocked items in a single sales order; the non-stocked items must be procured directly from a vendor and shipped to the customer without warehouse involvement. How does item category determination handle this within the same order, and what MM integration steps follow?