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PGI from Vendor Consignment stock

Former Member
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Hi,

I am a MM consultant, given up the same scenario ie Goods issue to a Sales Order from Vendor Consignment Stock.

When i am trying to do the PGI the system throws a message stating that the stock is unavailale, eventhough the stock exist Under the Vendor Consignment stock.

If anybody can help me how to map this scenario with SD configurational settings. I will be grateful to you.

Please expedite.

Regards,

DilL

Accepted Solutions (0)

Answers (2)

Answers (2)

Former Member
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hi,

sales orders generally fetch stocks from 'unrestricted' storage location. if you have separate storage locations for vendor consignment and a separate 'unrestricted' location then doing stock transfers from one location to another wud help.

saurabh

Former Member
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Hi Dilibabu

Go through the SD scenario of consignment.

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 if useful to u

Former Member
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Hi Mr. Naren,

Thanks for your immediate response.

But I am not interested in the Customer consignment. I need to do the goods issue from the vendor consignment stock ( which is handled through MM consignment procurement ).

Hope my requirment is clear now.

Regards,

DilL

Lakshmipathi
Active Contributor
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Hi Dillibabu

If I have understood your requirement correctly, you need to move the goods directly from Vendor to your customer. If so, you need to make an inward entry and the movement type would be 101. By this activity, the stock will be transferred to your storage location. From your storage location, you need to do PGI with either movement type 601 or 631.

But what you have to ensure is that if you are doing the above exercise, the part number will have to be changed when it is entered in your plant.

Thanks

G. Lakshmipathi

Former Member
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i believe you need to PGI for sales order directly from vendor consignment. just answered in another thread.

you can sell directly from vendor consignment stock.

1) config the stock determination (MM -> Inv. Mgmnt -> stk detem). define you want to issue own stock first or consignment first.

2) maintain the material master with the stock determination group accordingly

3) create consignment info. record and price

create sales order, doing pick for outbound. system will use 601K movement type.

after PGI. it debit GR/IR a/c and credit COGS a/c

in this case, the material cost is not hitting your inventory a/c at all.

regards

Matthew

csaba_szommer
Active Contributor
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Hi RitiG,

Please check OSS note 607604. If something is not clear please come back.

BR

Csaba