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Former Member

Consignment return

Hello,

We are implementing a customer consignment process.

I have an issue regarding the consignment return process.

I'm using the standard settings,

I created a consignment return type KR

Then I was able to create a billing document, even before creating and posting the delivery.

I find this strange because I thought the billing would be done only after the delivery.

Can someone please explain to me the benifits this way, and advise me of the correct way to for the process.

Thanks,

Dave

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2 Answers

  • Best Answer
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    Former Member
    Dec 03, 2008 at 03:59 PM

    Hi

    In addition to the scenario suggested by Mr.Lakshmipathi

    Take the case of Trading goods

    Suppose if your customer is wholesale customer and in turn if he sells to some small parties

    Suppose if you send him material X in consignment basis say 100 units

    Then consignment fillup order is 100 units

    Out of the 100 if he sells 50 units to some parties then Consignment issue order is 50 units

    The balance 50 units we are taking it back as Consignment Pickup

    If those small parties who have taken from your customer returns 10 units out of the 50 sold by him

    then this 10 becomes a consignment return

    In practical this return delivery has happened between that small party and your customer and we have not done return delivery

    In this case we have to give credit memo to our customer for that 10 units and this 10 units will once again a special stock at customers place under consignment fillup

    In this scenario also billing can take place without delivery

    Regards

    Raja

    Edited by: ramanathan raja on Dec 3, 2008 9:30 PM

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  • Dec 03, 2008 at 02:37 PM

    Dear Dave

    It is not necessary that in all cases of consignment return, you should do PGR. In some cases, customer will reject the goods but the rejected goods will not be returned to manufacturing plant. So in that case, you have to give credit to the customer for which you have to generate credit memo referencing the return order.

    thanks

    G. Lakshmipathi

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