consinement sales

[Former Member]

hi

every body

i want to know what accounts updated at every stage in consine ment sales & at which stage we have to create the excise invoice in consinement sales.

advance thanks

m m reddy

[Former Member]

Consignment Stock Processing

Purpose

Consignment goods are goods which are stored at the customer location but which are owned by the company. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods that are not required.

Consignment Fill-Up: Consignment fill-up replenishes the stock at the customer site. Since the goods remain the property of the company, this process is not relevant for pricing and consequently not for invoicing either.

Create a sales order using order type KB.

Enter the required data on the customer, the consignment goods and the delivering plant.

Enter all other relevant data and save the order.

Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.

The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer concerned. If special stock of this kind already exists in the delivering plant for this customer, the goods are posted to this special stock.

Order type: KB (document category C: sales order)

Std. Delivery type: LF

Item category: KBN (not relevant for pricing and billing)

Schedule line category: E1 (relevant for deliveries, uses availability check, 631 (GI consignment: lending) to post the stock into a special consignment category in the delivering plants stock for that particular customer and material)

Copy control rules for the sales doc, item category, and schedule line category.

Use trans MB58 or MMBE to check the stock.

In this case, Accounting document is required to be generated only for taxes, as the stock is still the ownership of the company. In the pricing procedure all condition type except for Taxes should be statistical.

Consignment Issue: The Consignment issue enables the customer to withdraw consignment goods from the special stock that are to be used or sold.

Create a sales order using order type KE.

Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.

Enter all other relevant data and save the order.

Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.

The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces your total stock.

Invoice the delivery which issues the consignment goods.

Order type: KE (document category C: sales order)

Std. Delivery type: LF

Invoice: F2

Item category: KEN (relevant for pricing and deliver related billing, special stock indicator W, should determine cost too)

Schedule line category: C1 (relevant for deliveries, uses availability check, 633 (GI issue: customer consignment)

In this case, Accounting document is required to be generated only for most of the condition type, as it is being invoiced to end customer.

Consignment returns: proceed as follows: Consignment returns enable your customer to return goods to the consignment stock that has already been issued from it.

Create a sales order using sales order type CR.

Enter the required data on the customer and the consignment goods.

Enter all other relevant data and save the order.

Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The goods issue posting cancels the goods issue posting which was carried out when the consignment goods were issued. This posting records the return of the goods to the plant where goods receipt was carried out.

Create a credit memo for the consignment return you created in Step 1.

Order type: KR (document category H: returns)

Delivery type: LR

Credit for Returns Order type: RE (delivery or order related billing)

Item category: KRN (relevant for pricing and deliver related billing, special stock indicator W

Schedule line category: D0 (relevant for deliveries, no availability check, 634

In this case, Accounting document is required to be generated only for most of the condition type, as it is being returned by the customer & invoicing already done to customer..

Consignment Pick-Up: The company uses consignment pick-up to take back consignment goods that are faulty or excess materials that the customer does not need. This process is not relevant for billing since the goods remain the property of the company.

It may be beneficial to have a mandatory reference such as the consignment fill-up. In addition to it copy control rules can be used to further control it. In the copy control rules indicate the document flow. As the stock is coming back into the warehouse or plant, you can specify a returns shipping point to be automatically determined. No invoice is necessary, as the goods are not changing ownership.

Create a sales order using order type KA.

Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.

Enter all other relevant data and save the order.

Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The transaction is completed by the goods issue posting which initiates a transfer posting from the customer's special stock to your plant stock.

Order type: KA (document category C: sales order)

Delivery type: LR

No invoice

Item category: KAN

Schedule line category: F1 (relevant for deliveries, availability check against the stock on the customer’s consignment, 632 (Consignment pickup)

In this case, Accounting document is required to be generated only for taxes, as the stock is still the ownership of the company. In the pricing procedure all condition type except for Taxes should be statistical, as the stock is being returned from consignment site to plant.

Regards,

Rajesh Banka

Reward points if helpful.

[Former Member]

Hi

Refer the link below

http://sap.ittoolbox.com/groups/technical-functional/sap-log-sd/customer-consignment-421100

http://help.sap.com/bp_wholesalev1500/wholesale_de/Documentation/Overview_BP_Wholesale.ppt

[Former Member]

Dear M M Reddy,

Consignment stock is stock legally owned by one party, but held by another.

<b>Ownership:</b>

Ownership of consignment stock is passed only when the stock is used (issued). Unused stock in a warehouse may be returned to the manufacturer.

<b>Accounting:</b>

As ownership of consignment stock is not transferred until use, invoicing is not immediate. To account for a replenishment of consignment stock at a customer site, a manufacturer must credit inventory and debit customer consignment stock. Only after a customer actually uses the consignment stock may an accounts payable be created.

The <b>consignment process</b> in SAP standard consist of four small processes:

<b>Consignment Fill-up:</b>

Consignment fill-up order: The company owned stock at customer site has to be replenished. An order can be triggered by a customer's call or report or even without any customer initiative.

Outbound delivery: A delivery is created in order to transfer the goods to the consignment stock. Within the delivery, the physical quantity is picked.

GI consignment: After the goods have been picked, the delivery is posted for goods issue.

Stock Overview: The goods are now in the customer's consignment stock. The stock overview will reflect the transfer of products.

<b>Consignment Issue:</b>

Consignment issue order: The articles and quantities sold by the customer are entered.

Outbound delivery: An outbound delivery is created to reflect the material movement out of the companies stock.

No physical picking is carried out, but the batches sold by the customer must be specified.

Goods issue: When the goods issue is created, the transfer from the consignment stock is carried out. This means that the articles are no longer in the property of the company.

Invoice: Once the goods issue has been posted, the delivery can be invoiced. Appropriate accounting and controlling documents are generated.

<b>Consignment Pick-up:</b>

Consignment pick-up order: The consignment pick-up triggers the return of goods from the customer's custody.

Returns delivery for the order: For the shipment of the company's goods from the customer consignment stock back to the warehouse, a delivery of the type LR (returns delivery) is created.

Goods movement (GR consignment return):

<b>Consignment Return:</b>

Consignment return order: The consignment return triggers the return of goods from the consumer to consignment customer.

Returns delivery for the order: For the shipment of the company's goods from the consumer to consignment stock, a delivery of the type LR (returns delivery) is created.

Goods movement (GR consignment return):

Stock Overview: The goods are now again in the customer's consignment stock.

Credit memo: Once the goods receipts has been posted, the delivery can be invoiced. Appropriate accounting and controlling documents are generated.

Note that in consignment fillup and consignment pickup there are no invoices since there is no change of ownership for the materials.

How to perform a consignment order?

In consignment orders you are allowing the stock to sit in your customer location. Once he informs that he used the stock you will invoice him. If he returns the stock you will accept the stock to take it back.

It is defined in 4 steps.

1. Consignment fill up:

Sales document type is KB

Item category KBN

shedule line category E1

In this step, you are not invoicing the customer. document flow is sales order -

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delivery item category. It will not be relevent for billing and pricing because you are not charging money for these goods in this step.

In schedule line category, you will set movement type <b>631</b> & set for availability check and TOR.

2. Consignment Issue.

Once the customer informed you that he used all the goods or partial goods then you will create consignment issue for used goods.

Sales document: KE

Item category: KEN

shedule line category: C0 or C1

Here you are invoicing the customer(because he used the goods). you are assigning the delivery documnt and billing document to the sales document.

In item category, you are setting relevent for billing, pricing, special stock.

In schedule line category, your setting is <b>633</b> movement type, relevent for availability check & TOR.

3. Consignment Return:

Customer found that some goods are damaged or he not able to sold the goods he want to send it back. that you are creating this document.

Sales document type: KR

Item category: KRN

Shedule line category: D0

You will assign delivery document and billing to sales document. you will create return order, return delivery, return billing.

Your setting item category relevent for billing, returns, pricing, special stock.

Your setting schedule line item category: <b>634</b> movement type, NO availability NO TOR.

4. Consignment Pick up:

Even if you create the consignment return the goods are not come to direct to your plant. For that you need to create consignment pick up. here the owner ship is not changing so you do not need to create billing.

Assign retrun delivery to sales document type.

Sales document: KA

Item category: KAN

schedule line category: F0 & F1

Your setting item category relevent for returns. any shedule line category relevent for <b>632</b> movement type, MRP, availability check, delivery.

Now you check your plant stock. Stock will increase.

http://help.sap.com/bestpractices/BBLibrary/Documentation/J58_Scen_Overview_EN_UK.ppt#271,5,Componen... View of Scenario J58

http://www.sap-img.com/sap-sd/taxation-explain-with-an-example.htm

Hope this will help.

Regards,

Naveen.

[Former Member]

Hi,

In consignment sale the system will create an excise invoice during Consignment fill up. Here the system update the COGS and material inventory.

Have a nice day,

AT

[Former Member]

Consingment process no special accounts updated .

In consingment fill up and consingment pick up no accounts updated bec'z not releated for billing.

In consingment issue and consingment RE both releated for billing normal accounts up dated.

[Former Member]

In consignment fill no accounts will update... in issue you create excise invoice will create after billing... in consignment pick up no updates.. in returns stocks will be added to your total stocks...

reward if it helps

ramki