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Former Member

Hii guys

Dear folks,

There is an scenario explained as follows, pls suggest

In an FMCG company where there are CFA'S (sales order processing offices cum stock warehouse) for each state in INDIA.

These distributor/dealer places orders to these CFA'S, from where the order is prcessed and stock is delivered.

The Company has 2 manufacturing units from where the stock is maintained at an warehouse at mumbai.The stock from this warehouse is sent to all the CFA'S, based on the sales forcast sent every month.

My doubt is In SAP

*****Do we need to report the stock transfer from Mumbai to these CFA'S as STOCK TRANSFER PROCESS

*****Or we should do stock posting at CFA'S ,considering the stock coming from MumbaI Warehouse as an stock coming from source(may be external or internal)

>>>>>>please suggest me which is more appropriate. In case my above details are not enough to explain it, please take your clients scenario explian it.

>>>..Hoping for the best explanation possible from you Guruz.

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4 Answers

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    Former Member
    May 27, 2007 at 11:14 AM

    Dear Monti,

    Go through the following thread:

    Regards,

    Naveen.

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    Former Member
    May 21, 2007 at 08:27 AM

    Hi Monti,

    are you crating each CFA's as plant\sales office,

    and both manufacturing unit as different plant e.g. Plant1 & Plant2 and if u r having same company code it's better to go for STO process from mumbai warehouse (Plant1\Plant2) to CFA's.

    Reward if useful

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    • Former Member

      hii Sainath,

      Thanks for ur reply, can u pls tell me the reason behind doing the STO.

      regards

      Montee

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    Former Member
    May 21, 2007 at 08:43 AM

    Hi.,

    In this case you should do STOCK transfe order,You should make CFA,s ,Ware houses as plants and maintain stock transport order

    REWARD if helpfull

    Thanks & Regards

    Narayana

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    Former Member
    May 27, 2007 at 11:11 AM

    The material being sent to CFA's can be handled through Consignment sales cycle, incase the CFA are being invoiced after the sale of material. Consignment sales Cycle is as under:

    Consignment Stock Processing

    Purpose

    Consignment goods are goods which are stored at the customer location but which are owned by the company. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required.

    Consignment Fill-Up: Consignment fill-up replenishes the stock at the customer site. Since the goods remain the property of the company, this process is not relevant for pricing and consequently not for invoicing either.

    Create a sales order using order type KB.

    Enter the required data on the customer, the consignment goods and the delivering plant.

    Enter all other relevant data and save the order.

    Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.

    The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer concerned. If special stock of this kind already exists in the delivering plant for this customer, the goods are posted to this special stock.

    Order type: KB (document category C: sales order)

    Std. Delivery type: LF

    Item category: KBN (not relevant for pricing and billing)

    Schedule line category: E1 (relevant for deliveries, uses availability check, 631 (GI consignment: lending) to post the stock into a special consignment category in the delivering plants stock for that particular customer and material)

    Copy control rules for the sales doc, item category, and schedule line category.

    Use trans MB58 or MMBE to check the stock.

    In this case, Accounting document is required to be generated only for taxes, as the stock is still the ownership of the company. In the pricing procedure all condition type except for Taxes should be statistical.

    Consignment Issue: The Consignment issue enables the customer to withdraw consignment goods from the special stock that are to be used or sold.

    Create a sales order using order type KE.

    Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.

    Enter all other relevant data and save the order.

    Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.

    The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces your total stock.

    Invoice the delivery which issues the consignment goods.

    Order type: KE (document category C: sales order)

    Std. Delivery type: LF

    Invoice: F2

    Item category: KEN (relevant for pricing and deliver related billing, special stock indicator W, should determine cost too)

    Schedule line category: C1 (relevant for deliveries, uses availability check, 633 (GI issue: customer consignment)

    In this case, Accounting document is required to be generated only for most of the condition type, as it is being invoiced to end customer.

    Consignment returns: proceed as follows: Consignment returns enable your customer to return goods to the consignment stock that has already been issued from it.

    Create a sales order using sales order type CR.

    Enter the required data on the customer and the consignment goods.

    Enter all other relevant data and save the order.

    Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The goods issue posting cancels the goods issue posting which was carried out when the consignment goods were issued. This posting records the return of the goods to the plant where goods receipt was carried out.

    Create a credit memo for the consignment return you created in Step 1.

    Order type: KR (document category H: returns)

    Delivery type: LR

    Credit for Returns Order type: RE (delivery or order related billing)

    Item category: KRN (relevant for pricing and deliver related billing, special stock indicator W

    Schedule line category: D0 (relevant for deliveries, no availability check, 634

    In this case, Accounting document is required to be generated only for most of the condition type, as it is being returned by the customer & invoicing already done to customer..

    Consignment Pick-Up: The company uses consignment pick-up to take back consignment goods that are faulty or excess materials that the customer does not need. This process is not relevant for billing since the goods remain the property of the company.

    It may be beneficial to have a mandatory reference such as the consignment fill-up. In addition to it copy control rules can be used to further control it. In the copy control rules indicate the document flow. As the stock is coming back into the warehouse or plant, you can specify a returns shipping point to be automatically determined. No invoice is necessary, as the goods are not changing ownership.

    Create a sales order using order type KA.

    Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.

    Enter all other relevant data and save the order.

    Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The transaction is completed by the goods issue posting which initiates a transfer posting from the customer's special stock to your plant stock.

    Order type: KA (document category C: sales order)

    Delivery type: LR

    No invoice

    Item category: KAN

    Schedule line category: F1 (relevant for deliveries, availability check against the stock on the customer’s consignment, 632 (Consignment pickup)

    In this case, Accounting document is required to be generated only for taxes, as the stock is still the ownership of the company. In the pricing procedure all condition type except for Taxes should be statistical, as the stock is being returned from consignment site to plant.

    Incase the Material is being transfer to our own warehouse, in that case it is recommended to use Stock Transfer Scenario.

    Regards,

    Rajesh Banka

    Reward points if helpful.

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