What is third-party business transaction in SAP SD - Sales and Distribution?

SAP Term: third-party business transaction

• Component: SD

• Component Name: Sales and Distribution

• Description: A business action in which traded goods are not handled by the warehouse but delivered directly by the vendor to the customer.

Smart SAP Assistant

• Key Concepts: 
  A third-party business transaction in SAP Sales and Distribution (SD) is a type of sales order where the customer does not take delivery of the goods, but instead, the goods are delivered directly to a third party. This type of transaction is often used when a customer wants to purchase goods for someone else, such as a gift. 
  
  How to use it: 
  In SAP SD, third-party business transactions are created in the same way as regular sales orders. The only difference is that the delivery address is set to the third party’s address instead of the customer’s address. The customer will then be invoiced for the goods and the third party will receive them. 
  
  Tips & Tricks: 
  When creating a third-party business transaction in SAP SD, it is important to ensure that all relevant information is entered correctly. This includes the customer’s details, the third party’s details, and any other relevant information such as payment terms or delivery instructions. 
  
  Related Information: 
  Third-party business transactions are also known as “drop shipments” or “direct shipments” in SAP SD. They can be used for both domestic and international orders. Additionally, they can be used for both B2B and B2C transactions.