Consignment Process in Virtual plant with CIN

[Former Member]

Hi All,

We have to implement Consignment process with CIN.

We have a manufacturing plant, and going to create a Virtual plant near Customer location.

Could you please guide me with links or documents to do this confuguration.

I have so many doubts. Let me write few of them.

If we are creating a Virtual plant and receive stock from a manufacturing plant, is it mandatory to create virtual plant as Depot?

How does the excise duties and taxes calculated for this scenario? Because normally if we sell goods from Depot, we have charge the same Excise what we paid already, is it a same case with Virtual plant also.

Are the basic assignments in configuration same for Virtual plant like actual plant?

These are some basic doubts, please let me know any other important things to be considered?

Regards,

Raja Durai

[Lakshmipathi · Accepted solution]

is it mandatory to create virtual plant as Depot?

Not necessary.  You can treat it as a plant.

How does the excise duties and taxes calculated for this scenario?

Your client has to explain as to how they are going to account this and what is the statutory requirement.  You can play around with whatever requirement client is giving but they have to ensure it is in line with statutory requirements.  Moreover, I feel, for this requirement, consignment process wont suit since you need to know the end customer while creating KB order.  May be you can consider doing Plant to Plant Transfer via MM route.

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Lakshmipathi,

Thanks for the points.

Knowing the end customer is a valid point. We never discuss this point. Thanks for the suggestion.

Could you please share if any useful link for the same.

Regards,

Raja Durai

Message was edited by: Durai Raja

[Lakshmipathi · Accepted solution]

Take the inputs from here

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Lakshmipathi,

Thanks for the inputs.

Could you please suggest the solution whatever I have proposed below will work out.

We have a distributor in Chennai, we are planning to move our goods to his location from our plant which is located at Bangalore.

We are planning to sell our goods from that plant.

Either create a distributor as a Virtual plant or as a Storage location? Which one is advisable.

In the distributor site there is no value addition for the goods. That is just for storage purpose.

I am not sure whether we can set up a storage location across the States in India.

This is the actual situation here. If you need any other information, I can share it.

Kindly suggest me.

Regards,

Raja Durai

[Lakshmipathi · Accepted solution]

You can very well follow the MM route as suggested in the link by treating the dealer as a plant.  From SD perspective, have the same plant code as shipping point and not storage location.  This will take care of your SD process.

G. Lakshmipathi

[Former Member · Accepted solution]

Hi Lakshmipathi,

Thanks for the suggestion.

If I create the chennai dealer as a storage location. I can move the stock to that storage location.

I can use my Bangalore plant along with the storage location I have created for my dealer.

Is it not a advicable process. Could you please suggest if any drawback and challenges in this.

Because if I can treat my dealer as a storage location, that will drastically reduce my configuration work.

Regards,

Raja Durai

[Lakshmipathi · Accepted solution]

Could you please suggest if any drawback and challenges in this

Though there would not be tax since it would be interplant transfer, you need to pay excise duty when your client moves stock from Bangalore to Chennai.  So if you treat your dealer as a storage location, this is not possible.  In order to adhere to this statutory requirement, you need to have the dealer as a plant.

G. Lakshmipathi

[phanikumar_v3]

In Consignment Process--Stock will be Kept at CUSTOMER'S LOCATION--But the stock belongs to business only...

If you create a Virtual Plant/Depot--then this stock will be under Business only and

also Lying under Business premises..

As suggested by Mr lakshmipathi--doing and naming this process as "consignment" is not suggestable here.(Pl Discuss with your client and you should have a crystal clear information on this requirement)

Pl Update us accordingly...

Phanikumar

[Lakshmipathi]

Moved from SAP ERP Sales and Distribution (SAP SD) to Internationalization and Unicode.  Please post all CIN related queries here.

G. Lakshmipathi