How to Capture freight and so on with Customer Consignment

[Former Member]

Hello All,

We are using customer consignment for a particular customer. When we do KB (Consignment fill-up), as you all know, this is where we do the delivery, shipment and shipment cost. Now after the customer as used the product and we are ready to bill, we do KE (Consignment Issue), but since the product is already at the customer location, we just do post goods. No, shipment and shipment cost. The issue now is, when we invoice the customer for the goods consumed based on KE, there is no where to capture the freight because shipment cost was done while processing KB and not KE and we don't invoice using KB.

What are the options to capture this freight and miscellaneous fees in the invoice?

Thanks for your help.

[phanikumar_v3]

Dear

You will maintain a freight condition in your pricing procedure if your customer is liable to pay freight.

In consignments Customer will not pay anything until he consumes the stock.

Here i don't find any issue but getting confused of your approach.

If your consignment has been filled at Customers location you will be doing SHIPMENT COST CALCULATIONS to calculate the shipping charges paid by company itself. if So company can record all this payments by using the pricing in shipment cost calculations.

I feel you don't add any Freight condition in your KB pricing procedure now and whenever customer interested to pay for this freight(based on your assumption in future)-in KE--make a condition type --may be a copy of KF00 and maintain records accordingly based on payments to Forwarding agents done by company.

Hope this helps.

Phanikumar

[siva_vasireddy2]

Hi,

is it Possible that you capture Shipment and shipment cost at KE level as the Invoice is being done at this Level.

[Former Member]

Siva,

Since it's a consigment, the shipment and shipment cost are done in KB when the goods are physically shipped to the location. In KE, we don't ship again, we just issue the goods used. By the KE, the goods are already at the customer location.

[siva_vasireddy2]

Hi,

Though you Physically ship i think it is till the Company's Property.

[mahendra_jani3]

Hi Basil,

Just wanted to know, are you re-covering Freight from Customer?

Regards,

MJ.

[Former Member]

Hey MJ,

We pay for the freight not the customer. But we still want to be able to account for it. We are looking at future when we have a customer that will be paying for the freight then this will be a big issue if it's not reflected on the invoice.

[mahendra_jani3]

Hi Basil,

Are you creating Consignment Issue (KE) order with reference to (KB) Delivery?

I am asking this because, there is chances that your Qtys and Products in KE and KB may not match. So even if you will copy Freight price from KB it may not be accurate.

Another Point, is If in future Your customer is going to pay for Consignment Fill up at that time You can assign, Commercial Invoice type to KB and Post only Freight condition type to customer. (Standard Configuration is available for this to pull Price from Shipment Doc to Invoice, Google search will help)

Or If your Customer is saying that he will pay only for KE related cases, then You can just add one Freight condition type in Pricing Procedure.

If logic is straight forward then Freight Condition type can be Automatic else it can be manual at Header Level.

I have still feel that to copy Shipment Cost value from KB and populate at KE is not a good idea considering difference or Qty as well as Material. Probably there may not be 1:1 relationship between them.

Regards,

MJ.