customer consignment -fillup from vendor consignment stock

[Former Member]

Dear Experts,

My client having a unique scenario that my clent deals with drilling equipments. my  client has some approved vendors , vendor has put 1000 quantity of X material at my client warehouse (vendor consignment stock)

Now a purchase order came from customer for 500 quantity under customer consignment stock

In standard SAP , if i want to send stocks to customer through consignment, system always pick from unrestricted stock, is there any way to pick the customer consignment from vendor consignment stock

valuable suggestions appreciated

Thanks and regards,

Pratheep

[phanikumar_v3 · Accepted solution]

Vendor consignment stock:(1000 drilling machines) owner is vendor--not business,your vendor is using business premises.

Customer Consignment stock:(500 Drilling machines)owner is business--Business is using customers premises.

"""""is there any way to pick the customer consignment from vendor consignment stock""""

You should understand first--where you suggested the system that this 1000 came into inventory of Business???

Phanikumar

[Former Member · Accepted solution]

Thanks Phani ,

this 1000 quantity is lying at business premises as 101k stock, can i sell this stock through consignment fillup to customer site?

[Lakshmipathi · Accepted solution]

can i sell this stock through consignment fillup to customer site

Is there any specific reason for you to go with consignment process?  From your comments, what I could understand is some stocks are lying at clients' place which has to be despatched to their end customer.  If that is the case, you can follow the normal SD process. 

G. Lakshmipathi

[Former Member · Accepted solution]

thanks G. Lakshmipathi

this stock is nothing but 101 K stock from vendor  to company (Business premise)

this stock is dispatching to customer site by 631 W ...is it possible?

Regards,

pratheep

[Lakshmipathi · Accepted solution]

Yes quite possible provided the special stocks are convered to normal stock and transferred to Unrestricted.

G. Lakshmipathi

[Former Member · Accepted solution]

This message was moderated.

[Former Member · Accepted solution]

Dear Mr.Lakshmipathi,

           Based on the above discussion ..can you pls provide as to how can we convert the special stock into normal stock and then to unrestricted stock..

Rgds

Kalyan

[Former Member · Accepted solution]

Thanks all for your valuable time

I have found the solution through the stock determination rule

system will pick the stock from consignment (vendor) and issue to customer

can anyone can suggest the accounting entries for directly consume the stock of vendor consignment

regards,

Pratheep

[srinu_s1 · Accepted solution]

can anyone can suggest the accounting entries for directly consume the stock of vendor consignment

You can not directly delivery the goods to your customer from from Vendor consignment because.

In Vendor consignment process when your company receive the goods from Vendor to your company premise still the stock is validated at Vendor accounts only.

Here in this process mov type 101K and when you do MIGO there is NO FI or material doc entry reason is still the ownership lying with Vendor.

Next when you want consume the stock for your company customer delivery first you need to remove the stock from Vendor consignment to your company stock( UN restricted stock type) through transfer posting here mov type 411k then system generates accounting entry both FI and Mat doc, reason is stock is coming into your company un restricted stock type.

Here the accounting entry would be Stock account debits to GR/IR credit

Now you have to issue the material to your company customer either through standard customer consignment or normal OTC cycle as per your requirement here i need not to say the accounting entry part hope you know this entry part.

thanks,

Srinu.

[Former Member · Accepted solution]

Great Srinu,

Good Explanation, but i have a little concern here is , somebody has suggested me to configure the stock determination rule at inventory management

this rule will assign with Vendor stock

and the same rule will assign with delivery item category

So while doing PGI , system will take the vendor stock and delivered

Accounting entry will be

GR/IR account Dr

COGS Account Cr

The movement type will be 601K

Will it works?

Please suggest me the valuable inputs

Regards,

pratheep

[Former Member]

This message was moderated.

[Lakshmipathi]

I am not sure whether you know the functionality and difference between Customer Consignment and Vendor Consignment.

As per the first para, the process is related to Third Party scenario and your next paras explains about customer consignment.  You can have both these process with separate document types and configuration.  That is whenever, your client would like to delivery from vendor stock, raise a PO on vendor and follow the third party sales process. 

On the other hand, whenever your client would like to deliver from own stock, have a warehouse to which, the stocks can be transferred which would be treated as a special stock with movement type 631W.  As and when customer requires, you can create a consignment issue order and deliver the material.

G. Lakshmipathi

[Former Member]

Thanks laxmipathi for your reply,

That means, instead of vendor putting stock to client premises , we can treat as a third party sales and the goods are directly delivered to customer site for customer consumption.

but client wants to implement consignment sales , since materials are already delivers through third party , we cannot make consignment sales again

please advice

Regards,

Pratheep

[Lakshmipathi]

I think still you have not understood the contents of my post.  In simple language,

• if stocks are delivered by the vendor, then it should be treated as a third party sale
• if stocks are delivered from your clients' warehouse, then it should be treated as a consignment sale.

If you are not familiar with consignment process, please search the forum as it has been discussed many times.

Last but not least, please spell the name correctly

G. Lakshmipathi

[Former Member]

sorry for spelling your name wrongly G. Lakshmipathi

I hope understood your explanation

but my concern is

1. vender deliver his goods to company premises under consignment stock
   
2. the same materials are taken and sent it to customer site under customer consignment without owning  company stock

is it possible , please reply me?

Regards,

pratheep

[venu_ch8]

Dear Pratheep

I Like Your way of intention, But Consignment process in Third party Not Possible

For this we have to Approach Technical team

so talk With your end user about this and Business team.  

[venu_ch8]

Dear Pratheep

Consignment and Vendor Business process i mean Consignment with 3rd party not possible in sap standard so we cant make  Configuration .