Consignment fill up - Accounting entry required in 631W movement type

[Former Member]

Dear all,

We have the following scenario on which we need you valuable  inputs

Scenario

We have a distributor to whom we dispatch goods - These are our goods until they are sold to the end customer. The COGS and Sale entries should be  booked when it is sold to the end customer by the distributor.

Possible solution

We tried to use the Consignment fill SD process (order type KB) - This generates a movement type 631 W during Delivery and PGI - W being the special stock indicator of the Distributor against which we can track inventory. When final sale happens we trigger 633 W to book COGS

Problem

However when we dispatch the material to Distributor using 631 W - There is no accounting entry - since it is the sale plant and only special stock indicator is changed.

We want to have an accounting entry generated at the time of Delivery/PGI

Distributor stock A/c --- Dr

To Common Plant stock A/c ---CR

Further when actual sale happens and 633W is triggered for COGS

COGS A/c ----- Dr

To Distributor Stock A/c--- Cr

Are the above accounting entries possible - we are open to configuring new movement types - We found out that we can change the inventory offset (GBB) keys - but we are unable to change the inventory key(BSX)

Please share your experiences/thoughts/suggestions around this.We are on 4.7 Version

PS - We do not want to create a new plant and do Stock transfer scenario as we add such distributors very frequently and we will have to create new plant for them always

[Former Member]

Hi

I am analyzing similiar requirement. Have you been able to achieve this ?

What are Best Practice for consignment process - Does it involve accounting entries to differentiate stock in Normal acc Vs. Customer-site stock ?

Please share thoughts.

Thanks

Kapil

[Lakshmipathi]

Not sure what exactly your requirement is.  Please create a new thread and explain what is the business process.  For information, for 631W, there wont be any accounting entries but if you want to check the corresponding cost details, you can check the same via MB51.

G. Lakshmipathi

[Former Member]

With reference to requirement mentioned by Swaminathan above, my query is on similiar lines -

During Consignment fill-up process, no accounting document is generated. At this step, I want following accounting entries -

Dr Stock a/c ( Customer Location )

Cr Stock a/c ( Normal )

Followed by following Goods Issue entries in 'Consignment Issue' step

Dr COGS a/c

Cr Stock a/c ( Customer Location )

Hope I am clear.

Thanks

Kapil

[Shiva_Ram]

However when we dispatch the material to Distributor using 631 W - There is no accounting entry - since it is the sale plant and only special stock indicator is changed.

This is correct, unless the product ownership changes, no value update will happen. By the way, why you want an accounting document, when there is NOT sale to distributor. All you need is quantity account at distributor site.

We do not want to create a new plant and do Stock transfer scenario as we add such distributors very frequently and we will have to create new plant for them always

Of course, creating plant is NOT a good option. Instead,can you create different storage locations for the distributors in a single plant and move the distributor inventory to it? This is transfer posting and not consignment process.

Regards,