special business - goods exchange

[cathy_liang]

Hi experts,

Pls advise whether the solution is acceptable. Or, any other advice? Many thx.

Solution:

To use consignment order. For so-called "selling", internal price (not post to AR) is applied.

Scenario:

Customer borrow goods from ABC company due to short of stock. Later, customer return the goods to ABC company.

Although the business is not related to selling, ABC company wants to evaluate the value of borrowed goods against customer. For e.g., DEF customer borrows the goods which is worth $100. ABC conpany internally considers that DEF customer "buys" the goods ($100).

[Former Member · Accepted solution]

Cathy,

You can use Consignemnt process Consignemnt Fill up (KB, KBN) and consignment Pickup(KA, KAN), here the item categories KBN and KAN have Billing relavance as "J" - delivery . In these steps you are not invoicing the customer. Document Flow is sales order --> Delivery.Iiem categories will not be relavant for Pricing or Pricing because you are not charging the money for the goods movement.

It is item category which is holding the key not the sales documents.

Regards

Sathya

[cathy_liang · Accepted solution]

Hi Sathya,

Yes, I agree. But my concern is the ownership of the goods.

U know, when using the consignment order we have mentioned, the goods is still owned by ABC company. In other words, the goods is still in ABC company's warehouse.

But ABC company consider it as "selling", i.e. the goods is deducted from their stock when "borrowing".

Any further advice?

[Former Member · Accepted solution]

Cathy,

Consignemnet Fillup is similar to stock transfer, where the goods are moved from company's premises and stay's in the customer place. (The Stock should be at customer place) But still it is company goods. Wherein only delivery happens no value or stock updation is carried out.

Consignment Issue- It is here if the customer uses the stock ad per your terms "Borrowed" stock, then he is entitled to pay and Invoice is generated. Here both COGS and value is updated through invoice.

You cannot use ther term "Selling" because their is no value realised from the customer, until he makes the sales from the borrowed stock. This is a Push strategy we use in marketing to promote our goods. Mostly we use this concept in Tobacco industry and Beverages industry.

Say For Ex: when Territory sales incharge is going through township, he stops at a retail stores and asks for a particular brand of cigarettes. If the shop owner says that he is not having stock of this particular brand. So immediately, the person introduces himslef to the shop owner and informs him that he will deposit 50 packs of cigarettes and the owner need not pay for the goods. But he is entitled to pay only if he is going to sell from the 50 packs deposited. A Timeframe is fixed after which sales person will take back the remaining stock and and the invoice of the sold goods. The sales person will add the stock to the company's warehouse stock.....

Hope you understand.....

I think you need to explain the terminolgy used in SAP or least match them to their expectations..

Regards

Sathya

[Former Member]

Hi Cathy, Looks like you can go ahead with consignment fill up and pick up processes. Since these transactions doesnt effect the AR, you dont need to post invoice.

[cathy_liang]

Hi Ravisankar,

Thx for your prompt reply.

But, is it more proper to use other customized order types (see below)? U know, the stock is deducted when "borrowing". If using consignment order, the stock is still under ABC company.

1. For "borrowing", to use Z- sales order with zero price.

2. For "returning", to use Z- return order with zero price.