Consignment process

[Former Member]

Hi Every body

kindly send me the process for consignment to boinepally1@hotmail.com

Thanks in Advance

[Former Member]

hi

consignment process is as follows

CONSIGNMENT FILLUP:

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CF IS USED TO SUPPLEMENT CUSTOMER'S CONSIGNMENT STOCK. GOODS ISSUE OF APPROPRIATE STOCK IS POSTED FROM THE UNRESTRICTED USE TO CONSIGNMENT STOCK. THE TOTAL VALUATED STOCK FOR THE PLANT REMAINS SAME.

1) CF IS NOT RELEVANT FOR PRICING SINCE THE CONSIGNMENT STOCK REMAINS THE PROPERTY OF THE COMPANY.

2)DUE TO CUSTOMER NOT BEING BILLED FOR ANY OF THESE ITEMS NO INVOICE IS RELEVANT.

3)THE DOC. FLOW IS SALES ORDER WITH CF AS DOC.TYPE, DELIVERY AND PICKING . NO BILLING IS REQUIRED AS THE STOCKS ARE COMPANY'S PROPERTY.

CONSIGNMENT ISSUE:

IT ENABLES THE CUSTOMER TO TAKE THE CONSIGNMENT STOCKS FROM THE SPECIAL STOCK FOR THEIR USE OR TO SELL. WE RECORD THIS TRANSACTION BY CREATING CONSIGNMENT ISSUE . AS A RESULT THE RELEVANT QUANTITY IS DEDEUCTED FROM BOTH THE CUSTOMER'S SPECIAL STOCK AND YOUR OWN VALUATED STOCK.

THIS TRANSACTION IS RELEVANT FOR BILLING SINCE THE GOODS NOW BECOME THE PROPERTY OF THE CUSTOMER.

DOC. FLOW IS VA01 WITH CI AS DOC.TYPE THEN VL01N AND INVOICE.

CONSIGNMENT RETURNS

CR IS A process flow that represents the faulty material or the product consumed or sold by the consignee. The consignee puts the stock back into his consignment stock as faulty & requests a credit note for returns.

The stock is moved back into the customers consignment stock and the customer calls to pick up.

order flow is va01 with kr as doc.type vlo1n credit memo or free of charge subsequent delivery.

consignment pick up

picking of faulty materials or excess material not consumed by customer. As the stock is coming back to our plant.

order flow is va01 with CP as doc.type vl01n, vl02n and vl09

regards

prashanth

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[Former Member]

hi

consignment process is as follows

CONSIGNMENT FILLUP:

<b></b><u></u>

CF IS USED TO SUPPLEMENT CUSTOMER'S CONSIGNMENT STOCK. GOODS ISSUE OF APPROPRIATE STOCK IS POSTED FROM THE UNRESTRICTED USE TO CONSIGNMENT STOCK. THE TOTAL VALUATED STOCK FOR THE PLANT REMAINS SAME.

1) CF IS NOT RELEVANT FOR PRICING SINCE THE CONSIGNMENT STOCK REMAINS THE PROPERTY OF THE COMPANY.

2)DUE TO CUSTOMER NOT BEING BILLED FOR ANY OF THESE ITEMS NO INVOICE IS RELEVANT.

3)THE DOC. FLOW IS SALES ORDER WITH CF AS DOC.TYPE, DELIVERY AND PICKING . NO BILLING IS REQUIRED AS THE STOCKS ARE COMPANY'S PROPERTY.

CONSIGNMENT ISSUE:

IT ENABLES THE CUSTOMER TO TAKE THE CONSIGNMENT STOCKS FROM THE SPECIAL STOCK FOR THEIR USE OR TO SELL. WE RECORD THIS TRANSACTION BY CREATING CONSIGNMENT ISSUE . AS A RESULT THE RELEVANT QUANTITY IS DEDEUCTED FROM BOTH THE CUSTOMER'S SPECIAL STOCK AND YOUR OWN VALUATED STOCK.

THIS TRANSACTION IS RELEVANT FOR BILLING SINCE THE GOODS NOW BECOME THE PROPERTY OF THE CUSTOMER.

DOC. FLOW IS VA01 WITH CI AS DOC.TYPE THEN VL01N AND INVOICE.

CONSIGNMENT RETURNS

CR IS A process flow that represents the faulty material or the product consumed or sold by the consignee. The consignee puts the stock back into his consignment stock as faulty & requests a credit note for returns.

The stock is moved back into the customers consignment stock and the customer calls to pick up.

order flow is va01 with kr as doc.type vlo1n credit memo or free of charge subsequent delivery.

consignment pick up

picking of faulty materials or excess material not consumed by customer. As the stock is coming back to our plant.

order flow is va01 with CP as doc.type vl01n, vl02n and vl09

regards

prashanth

[Former Member]

very helpfull

thank you

[Former Member]

Please send in your email id and I will mail you with a thorough understanding

thanks

[Former Member]

Hi

<b>Sent mail. Reward if its help full</b>

The consignment process in SAP standard consist of four small processes:

1. Consignment fillup (cf)

2. Cosignment issue (ci)

3. Consignment returns (cr)

4. Consignment pickup (cp)

In the fill up CF document type stock is sent to the customer, VA01 to VL02N, no billing in the issue CI document type order is processed to the customer from VA01 to VF01 in the returns CR document type damaged or product/material complaints are attended through returns in the pickup process cp document type the returned stock and stock left out after the issue process are sent back to the business tcodes to see the stock are MMBE / MB58.

Message was edited by:

SHESAGIRI GEDILA

[Former Member]

Hi,

Consignment is the special stock where the goods is present physically at the customer site but ownership lies with the company.

The consignment process in SAP standard consist of four small processes:

Consignment fillup (send materials to customer consignment).

Here you have a consignment fillup order and a consignment fillup delivery.

Consignment issue (issue materials from customer consignment to the customer).

Here you have a consignment issue order, consignment issue delivery and a consignment issue invoice. (the flow is very similar to a normal OR flow, but the materials are issued from the consignment stock instead of plant stock unrestricted).

Consignment return (return materials from customer ownership to customer consignment).

Here you have a consignment return order, consignment return delivery and a consignment return invoice. (the flow is very similar to a normal RE flow, but the materials are returned to the consignment stock instead of plant stock returns).

Consignment pickup (pickup consignment stock and move it to plant stock).

Here you have a consignment pickup order and a consignment pickup delivery.

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 -

---

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 631 & 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 633 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: 634 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 632 movement type, MRP, availability check, delivery.

Now you check your plant stock. Stock will increase.

Advantages with consignment.

Mainly this is done for the new products and nonmoving products(in some industries) . For the new products there is no Market share, customers(Here customers means the distributors) wilol not show interest in selling these products to the end users. To encourage them we will use the consignment process where the customer(Distributor) pays to the company only after he sells the goods from his location.

Disadvantages.

1. we can invoice the customer only after informing us about the products that he had sold to the end customer.

2. Goods will present at the customer site, he might not take the required precautions in handling the goods.

Reward points if it is helpful

Regards,

Sree