cancel
Showing results for 
Search instead for 
Did you mean: 

Resrvation & Consignment?

Former Member
0 Kudos

Dear all,

What is the difference between Reservation and Consignment?

Regards

Jayesh

Accepted Solutions (0)

Answers (4)

Answers (4)

Former Member
0 Kudos

HI

Tasks

The user has the task of creating, displaying, and if required, changing reservations for material. He or she can also list reservations according to particular criteria with the report List of Reservations.

Activities in Materials Management

Transaction Code

Create Reservation MB21

Change Reservation MB22

Display Reservation MB23

List of Reservations MB25

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.

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

0 Kudos

consignment process is generally in auto indstries.

company will supply material to customer site but still it is under valuated stock of plant . when customer actually consumes and inform company regarding usage of materail , then company create again order-del and billing then stock sits from plant valuated stock to customer-consignment. we can do av check in cust consignement stock.

How much stock sent to customer site i.e initial processing is depending up on agreement between company and customer(like LC, bank guarantee)

Former Member
0 Kudos

Reservation means stock should not less then the reservation quantity

Consignment is stock is booked for a perticular coustomer .

Pionts if helpfull

Former Member
0 Kudos

hi

A request to the warehouse or stores to keep a material ready for issue at a future date for a certain purpose.

The purpose of a reservation is to ensure that a material is available when required. A material can be reserved for a cost center, a plant, or an order.

A material can be reserved for particular customer and normal sales process follows

in consignment

A form of business in which a vendor (external supplier) maintains a stock of materials at a customer (purchaser) site.

The vendor retains ownership of the materials until they are withdrawn from the consignment stores.

Payment for consignment stock is required only when the material is withdrawn for use. For this reason, the vendor is informed of withdrawals of consignment stock on a regular basis.

as per sap help

regards

prashanth