Sell of goods in exhibitions

[Former Member]

Hi Friends,

We are mapping a process in SAP where company is involved in scenario where they exhibit their goods in malls, stadiums etc. for 4-5 days and sell them. In these 4-5 days they install the set up for exhibition for which they take services of small vendors and after set up, sell the goods during exhibition. Once the exhibition is over, they returned the goods back to the company.

Also sometimes as a part of promotion, they give free goods (their own company products or sometimes they procure from market). Please suggest me how to map this in SAP ?

Regards,

Sandeep

[jobis · Accepted solution]

Hi,

I think best in such scenario will be consignment process, as it will only include creating new sales document types and marking required material stock under special stock.

If you go for a new plant, then it is a complete new plant roll-out. You will have to involve MM, PP, FI into it, Also creating a new plant just for a new sales process (when you dont actually have a plant) may not be recommended.

But, if processes are more in consignment, then Just do cash sales without creating a new plant. May be you can use a new sales group for these sales, for ease of analysis. Just assign this sales group during cash sales creation.

This is my thinking

Thanks

Jobi

[former_member182378 · Accepted solution]

Jobi,

Discussion about whether to create a plant for a mall - is a good one. Thanks!

A mall could represented as a new storage location. Creation of plant is not needed.

In consignment process (apart from unnecessary configuration elements and transaction data), you are signifying a mall as a "customer consignment warehouse", this is not correct.

TW

[jobis · Accepted solution]

Hi TW,

Yes you are correct. Storage location would be a good option.

And considering mall/stadium (for a temporary sales activity) as a franchise or consignment warehouse also will not be correct.

How about creating a new distribution channel and use Cash sale. Then as suggested by you, use new storage location..?

Thanks

Jobi

[former_member182378 · Accepted solution]

Jobi, Sandeep,

Distribution channel is a good idea! But there is lot of setup - customizing and master data to be done. Instead, I would suggest to use Order Reason - Trade fair (or Mall sale) in the sales order. This will suffice.

TW

[Former Member · Accepted solution]

Hi TW,

Thanks for your inputs.

-Separate storage location is a good option. However since the stock will be in mall/exhibition which is not our company's location (or property), is this option still recommended.?

-Also in case of consignment sale, stock can be reserved as a special stock against the customer while in normal sals it can not. Any suggestions/alternatives here..?

Regards,

Sandeep

[former_member211108 · Accepted solution]

Hi Sandeep,

First you need to determine the volume of business. If its significant/recurring then will suggest for new plant.

As far as new storage location is concern it may lead in mess as ATP/MRP is controlled at plant level (Although you can instruct for storage location)

Hope this will help you.

Thanks and Regards

Atulkumar Dagade

[former_member182378 · Accepted solution]

Sandeep,

After reading the scenario again,

1. The malls change frequently: For 3/4 days sale is done from mall M1, then from mall M2 and so on. So the malls are changing frequently.

2. Do you want to check availability of stock in mall before confirming quantity?

Your company has set up a stall in M1, if there is sufficient stock in M1, then no need to activate availability check functionality for this mall sale process.

With separate Order type, item category and schedule line category you can control that availability check will not happen for mall sale. In the order, in some field user can give the mall name; to differentiate sale from M1 and M2 etc.

3. Taking 1 and 2 together, no need to create any plant or storage location in SAP.

The differentiator will be the dedicated order type (Cash sale for mall sale) and the description in sales order. (e.g. PO number). This will make maintenance easier and less configuration work.

4. I am not in favor of consignment sale

Do you want to keep track of transactions (sales order, delivery) from company to mall?

5. Physically when stock is returned from Mall to company, nothing has to be done related to stock movement, as stock is kept in the company plant, in SAP, for the entire process.

TW

[chandanmodi]

What I can think of is:

Create a virtual plant for the exhibition, where we can change the addresses anytime. Or better, for every country location we have a dummy plant. Then we can create a customer number for that plant. We will initiate the Intercompany sales / intercompany or intra company STO process wherein, we can first move the stock from main plant to this dummy plant using PO --> Replenishment Delivery --> Invoice (depends). Then once the sales is done, then we can return the left over quantity to the main plant.

[former_member211108]

Hi Sandeep,

I would recommend to have separate plant for trade fairs assuming that this will be  recurring activity.

You may create and assign the separate cost center/profit center in order to proper financial analytics.

Thanks and Regards

Atulkumar Dagade

[siva_vasireddy2]

Hi,

you can go with consignment process

[siva_vasireddy2]

Hi TW,

you have stated a Valid point

[jpfriends079]

In my opinion, standard consignment sales business process suits this business requirement. Be it for goods movement or ownership of goods or return of material after exhibition or sales during the exhibition.

Thanks, JP

[former_member182378]

JP, Siva,

The disadvantage with consignment process is that many documents have to be created, we have

Fill up process > then, Issue

So, many configurations and then transaction data, unnecessarily!

In this scenario, we do not need the visibility of the Fill up process (orders, deliveries). Further, this is not special stock (W), this could be any product sold in malls.

TW

[former_member182378]

Sandeep,

Mall or stadium - You can create as a plant in SAP. Put stock in that mall / plant.

When you sell products, follow the Cash sale process.

In this after creating a sales order immediately a bill (printout) will be created and can be given to the customer. Stock in mall will get reduced with the creation of order.

After 4-5 days, you can transfer the unsold stock from plant mall to other plants, in SAP.

For FOC goods, you can use Free of charge order type (in which there is no bill)

TW