Consignment Process scenerio

[former_member232834]

Hi

I have a scenario where company blue is manufacturing fertilizer. And company Black is the parent company which does the selling on behalf of Blue and distribution as well. Current scenario is that Company blue is suppose to send goods to company's black storage locations which are maybe 153 different locations around the country. And as company black consumes and sells we the blue company bill them.

So this is a consignment process but i'm unsure as to how to cater the scenario. Should Company Black be the sold to party and the storage locations the ship to party? how does the goods go to there storage location in terms of customer special stock does MM have to do a STO?

Or I have to make those 153 storage loctions as a customers in my system ,.

I would be thanful to yu gurus if some one can kindly help me out

Kind Regads,

Ali

[Former Member]

Hi there,

I feel that this can be implemented as a normal consignment process. Define Blue as your sold-to (consignee) & 153 locations as ship-to for Blue.

You will process KB to send the goods to Blue. When you enter KB order, system will popup a message where you can select the actual location (ship-to). This is because even though you send to any of the 153 locations its ultimately Blue whom you are going to bill.

So when Blue sells the goods to the customer, you will raise a KB. Sold-to is again Blue & ship-to is one of the 153 locations that you will choose from the pop-up. Then you will bill Blue with invoice.

When the customer returns the goods to Blue you wil raise a KR & will process credit memo request.

When you actually take back the goods from any of the 153 locations you will raise a KA. Here again your sold-to will be Blue & ship-to will be any of your 153 locations which you choose from the popup during order entry.

1 doubt - is Blue on SAP? If not, then what happens after Blue sells to the customer is out of scope for your project.

If Blue s also on SAP, then when he sells to the customer, you will raise an OR in which the sold-to is the actual end customer & ship-to will be his destination.

Here you can also automate th process sothat as & when an OR is raised, that will create KE in your system.

Hope this helps.

Regards,

Sivanand

[former_member232834]

Actually the fertilizer company is the one were implementing SAP at now. The other company black or was it blue they will implement SAP as well, right when where done with this company.

Based on the first suggestion given to me if u scroll above I sparked a conversation with MM. They said they can do a STS. Store to store transfer. We can use the 153 storage loc as a store. once thats done we do the normal sales order process and deliver, and once pgi has been made it will reflect the actual goods sold and if u want to do an inventory stock check it is possible to see how much stock is left. So this is another way.

the 2nd suggestion is also a good one but depending on the amount of info that has been provided to us it can be difficult in terms of time spans. Delivery submission deadlines etc.

Thanks for the great solution responses.

Ali

[Lakshmipathi]

If you know the end customer details, you can go for consignment process. This means, Company Blue should create a sale order on end customer as sold to party and company Black as ship to party.

Otherwise, you have to adopt MM process

thanks

G. Lakshmipathi