Consignment process to map distributor & retailer

[prashant_sharma21]

Hello Experts,

I have one requirement,

My pharma company put the stock to distributor "X" and distributor sales the medicine to retailer (end customer). we are just place the goods to distributor once distributor sales the good to end customer then only we create the invoice against the retailer.

As per my understanding we can map this requirement through Consignment process.

1. We are putting the goods to Distributor, ant it is company property only: Here we can use consignment Fillup - in which we create consignment fill up orders > Delivery > PGI , we don't create invoice here.

2. Once end customer purchase: we create consignment Issue in which we create consignment issue order > Delivery > PGI > Invoice.

I have some concerns here.

1. What would be the sold to party and ship to party in consignment fill up??

At the time of Consignment Fill up we don't know the end customer who will purchase the goods from distributor. in that distributor area we have 5 end customer any any end customer can purchase this goods so at the time of Consignment fill up what would be Sold to party & Ship to party.

>> Shall I create distributor as specisl partner function (SB) in consignment process?? But at the time of consignment fill up we need sold to & ship to as well and we don't know while putting the stock at distributor site bcause out of 5 end customer any one can purchase it .

2. When end customer purchase this goods I want end customer should be map as Sold to party and ship to party in consignment issue. KE > DL > PGI > F2

Important point is when we sales the goods to end customer through distributor, company has to give 5% of commission of sales to distributor. how we can map this commission to distributor in sap ??

I am clear about consignment process but don't know how I can map my requirement here.

Kindly give me your idea how we can map this process in SAP.

Thanks.

[phanikumar_v3]

"""""MY basic requirement is I want distributor as an agent to whom company will give commission as per sales but as per inventory prospective, system should shows inventory at distributor level and it will be the property of company (distributor) till sold to retailer (end customer)"""""

In Pharma sales this process of keeping stock at various distributor level is quite common.These are called CFO agents(carry & forward agent) and he gets some 5-10% on business in lacs later by credit note month wise.

But the interesting thing is --here CFO will pay the amount for the purchased goods (what to purchase will be decided by higher level management in sales team)

otherwise will be termed as Super Stockiest(as per his consumption--he is having the liberty in purchasing goods from Company)

Please have a complete information from your client .

If he doesn't pay anything for the purchased goods then you need to Convert this agent as a plant(can be termed as depot) and do the process.

I think applying consignment process here is not correct.

Phanikumar

[jobis]

Hi,

As discussed in the thread which was posted by CB Reddy, in consignment, will, having the end customer (retail shop) as BP and PY partners, meet your requirement ?

Else, Here the distributor is an agent, so probably consider him like a vendor . In that case, look at STO processes.

There is some business solution available in SAP to handle agents and agent commission. Search for that too.

Regards

Jobi

[prashant_sharma21]

Thanks All Experts,

But I am still confuse how can I map my requirement in SAP.

As per business process e are not selling goods to Distributor, we are just keeping are goods to distributor and selling to retailer (end customer) that's why Consignment comes in my mind but I am not sure I can I achieve it.

As per G. Lakshmipathi>> You have to go with MM-SD route only.

Is that PO- SO process which occurs between two company code, if yes then how can I map it through PO-SO process ? Shall I create Distributor as receiving side and Plant as sending side ?? moreover distributor is not part of our company (not our company code) it's a kind of customer.

As per Phanikumar >> No need to think on end customer(means the final consumer who consumes stock)

But this is my business requirement basically I need to track sales to retailer via Distributor.

As per Naveen K.>> distributor will be playing both SP & SH partner role during the consignment fill up & issue process.

I understand this but if I make distributor as SP and SH then how can I track the sale to retailer (end customer).

MY basic requirement is I want distributor as an agent to whom company will give commission as per sales but as per inventory prospective, system should shows inventory at distributor level and it will be the property of company (distributor) till sold to retailer (end customer).

I hope you experts will understand my concerns

Thanks

[phanikumar_v3]

In Consignment process--No need to think on end customer(means the final consumer who consumes stock)

as i already mentioned in my previous posts--the price between you and your distributor will always varies with your distributor and Final consumer.

If you want to give 5% Discount at the time of consignment issue--include this as a condition type in your pricing.

Also Dont Mix SB partner here--this was a provision provided by SAP to maintain these consignment stock keepers as special partners.

Hope this helps.

Phanikumar

[former_member220617]

Dear Prashant,

plsease see the below therad , which is very user full for your process , according to that you can discuss with bussiness process and map the distributor and retailer to your consignment process.

Regards,

C.B Reddy.

[Lakshmipathi]

If you dont know the end customer, consignment process won't work.  You have to go with MM-SD route only.   That is for fill-up stage, you can stock transfer to the distributor and from there, normal SD process can be followed.

G. Lakshmipathi

[naveen_kaluti]

Hello Prashant,

As per my understanding the distributor will be playing both SP & SH partner role during the consignment fill up & issue process, this is because the stock is allocated to this customer which we can see in MMBE (customer consignment stock).

If you create a consignment issue with end customer as SP & SH, system won't find any stock allocated to him hence, you won't be getting any confirmed schedule line.

For commission to be paid to distributor check if below link helps.

Steps to Create Commission for Agent

Regards,

Naveen K.