storing and issuing customer materail

[Former Member]

Hi...

Can anyone explain me how do i store customer material in my storage location.

I have a senerio where i have to a contract with customer that he will store his material in my storage location, how do i receiot the goods and issue the goods when ever the cutomer require to use the material.

Does SAP has any feture where i can store customer materail and issue it to customer when required without affection the accounting.

[Former Member]

Hi Baig

I think ur scenario is more like customer consignment pls. check following info if usefull

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.

Vishal...

[Former Member]

I dont think that SD Consignment will be of help for this scenario. What I feel is to maintain a seperate storage location as the customer material store. And maintain the customer material is your company code.

Create the seperate movement types for incoming and outgoing stocks. (qty update only). And proceed with GR/GI

In this way you can handle the customer material scenario seperately.

Hope this may help you.

go4S

[Former Member]

Hi

Please clarify, is the customers material related to ur company, means any how r u selling or purchasing this material from ur customer or for just sake of facility u r storing their material? R u charging anything for that if there is no sale - purchase relation?

Regards

Amol

[Former Member]

HiAanmol

My senerao is I have a storage location which i have given it for rent, ie customer stores his material and uses it when ever required, this materail does not belong to company..

How do i map this scenerao.

Regards

SARFRAZ

[Former Member]

Hi,

Since that materila does not belong to your company u should not create any material master.Your rent comes under indirect income .

Thanks

suresh

[Former Member]

Yes your right that materail does not belong to my company but since i have implemented SAP, i have to keep of a track of incoming and ou going materail.. how do i map this scenerao..

Regards

sarfraz

[Former Member]

I think you have to create new material type which have only quantity updation, and no value updation for ur customer material. Create new mvt type for receiving and issuing material. these new mvt types should have only qty updation only, not value updation. Then you can track ur customer material.

[Former Member]

Hi,

You need to create a mtrl for which it should have qty updation and not value updation.ie either UNBW mtrl type.

Thanks

suresh

[Former Member]

Hi Sarfaraj

I still feel as u r not owner of that material u should not do these type of transactions in ur SAP, it will create lot of confusion in future. Still u want to go for it, use the above method suggested by Sriram

regards

Amol