Consignment Process

[Former Member]

Hi Guru's

I would like to know how we implement the consignment process in the implementation project (with a realtime scenario). what are the doc types and item categories used.

if you have any documents of real time scenarios pl fwd it to toshniwal.sd@gmail.com

Points will be given.

tks in advance for your kind help.

Rgds

Toshniwal

[Former Member · Accepted solution]

hi

,

Consignment is the special stock where the goods is present physically at the customer site but ownership lies with the company.

The consignment process in SAP standard consist of four small processes:

Consignment fillup (send materials to customer consignment).

Here you have a consignment fillup order and a consignment fillup delivery.

Consignment issue (issue materials from customer consignment to the customer).

Here you have a consignment issue order, consignment issue delivery and a consignment issue invoice. (the flow is very similar to a normal OR flow, but the materials are issued from the consignment stock instead of plant stock unrestricted).

Consignment return (return materials from customer ownership to customer consignment).

Here you have a consignment return order, consignment return delivery and a consignment return invoice. (the flow is very similar to a normal RE flow, but the materials are returned to the consignment stock instead of plant stock returns).

Consignment pickup (pickup consignment stock and move it to plant stock).

Here you have a consignment pickup order and a consignment pickup delivery.

Note that in consignment fillup and consignment pickup there are no invoices since there is no change of ownership for the materials.

How to perform a consignment order?

In consignment orders you are allowing the stock to sit in your customer location. Once he informs that he used the stock you will invoice him. If he returns the stock you will accept the stock to take it back.

It is defined in 4 steps.

1. Consignment fill up:

Sales document type is KB

Item category KBN

shedule line category E1

In this step, you are not invoicing the customer. document flow is sales order -

---

delivery item category. It will not be relevent for billing and pricing because you are not charging money for these goods in this step.

In schedule line category, you will set movement type 631 & set for availability check and TOR.

2. Consignment Issue.

Once the customer informed you that he used all the goods or partial goods then you will create consignment issue for used goods.

Sales document: KE

Item category: KEN

shedule line category: C0 or C1

Here you are invoicing the customer(because he used the goods). you are assigning the delivery documnt and billing document to the sales document.

In item category, you are setting relevent for billing, pricing, special stock.

In schedule line category, your setting is 633 movement type, relevent for availability check & TOR.

3. Consignment Return:

Customer found that some goods are damaged or he not able to sold the goods he want to send it back. that you are creating this document.

Sales document type: KR

Item category: KRN

Shedule line category: D0

You will assign delivery document and billing to sales document. you will create return order, return delivery, return billing.

Your setting item category relevent for billing, returns, pricing, special stock.

Your setting schedule line item category: 634 movement type, NO availability NO TOR.

4. Consignment Pick up:

Even if you create the consignment return the goods are not come to direct to your plant. For that you need to create consignment pick up. here the owner ship is not changing so you do not need to create billing.

Assign retrun delivery to sales document type.

Sales document: KA

Item category: KAN

schedule line category: F0 & F1

Your setting item category relevent for returns. any shedule line category relevent for 632 movement type, MRP, availability check, delivery.

Now you check your plant stock. Stock will increase.

Advantages with consignment.

Mainly this is done for the new products and nonmoving products(in some industries) . For the new products there is no Market share, customers(Here customers means the distributors) wilol not show interest in selling these products to the end users. To encourage them we will use the consignment process where the customer(Distributor) pays to the company only after he sells the goods from his location.

Disadvantages.

1. we can invoice the customer only after informing us about the products that he had sold to the end customer.

2. Goods will present at the customer site, he might not take the required precautions in handling the goods.

regards

[Former Member · Accepted solution]

sent mail reward if helps

[Former Member]

Hi

Consignments are those product that lie at the customers place but is owned by the company.The customer need not pay until he uses the goods or sells it

Four defined process:

Consignment Fill-up:

VA01 = VL01N = PGI

In consignment you are moving part of goods from your unrestricted goods to your customers place

Sales Document Type:KB

Item category:KBN

movement type:631

Example:companys goods=1000

Goods issued to customer=100

1000-100=900

COnsignment Issue:

The customer can either sell the goods or utilise the goods issued byu the company

VA01 = VL01N = PGI = VF01

Sales Document Type =KE

Item Category :KEN

Movement Type:633

100-60=40

60=consignment issue

40=customerr stock

Consignment Return:

The customer will return the unsold goods to the consignment stock.

VA01 = VL0N = PGR = VF01

Sales Document type:KR

Item Category:KRN

movement Type:634

60-20=40

40=consignment return

20=goods sold

Consignment Pick-Up:

VA01 = VL01N = PGR

In the consignment pick up process the customer consignment goods are returned to the companys stock.

Sales document type:KA

item category:KAN

Movement Type:632

customer stockconsignment return=4040=80

so companys stock=900+80=980

Regards

hema

[Former Member]

hi

I would like to know how u implemented in your project with eg..

[Former Member]

Hi,

Consignment is a special business process, when business likes to introudce the new product.

It places the stock in the customer site where the ownership still lies in the hands of the company

There are some special cases where the company first fill the stock in the customer site it is calles the consignment fill up

Then if the customer sells it to the end user then it is consignment issue

if the end user retunes some of the stock due to damage in the stock then it is responsible to give him the credit or return to the end user

if the customer wna tthe company to remove the stock form the premises then the company do the consignment pickup

the document types and item categories are as follows

consignment fill up

documet type KB

item category KBN

Schedule lin E1

Consignemnt ISSue

Dcoument type is KE

Item category KEN

Schedule Line c1

Consignment Return

Docunment type KR

Item category is KRn

Schedule line category is D0

Consignment Pick up Ka

item category is KAN

Schedule line category is F1

that's all

[Former Member]

Mail sent, check your mail.

Reward points if useful.

Regards

AK