Consignment

[Former Member]

Hi Friends,

Please clarify this:

What is the use of Special Partner function, SB in Consignment.

Thanks and have a great weekend.

Bye...

Vishal

[Lakshmipathi · Accepted solution]

Hi Vishal

From the point of view of inventory management, consignment stock is managed as special stock in your inventory and is assigned to specific customers. This enables you to keep track of consignment stock by customer.

A special stock partner has been defined for processing consignment stock by means of a third party rather than the customer. This means that all special stock for a particular customer is managed under one partner. It makes sense to use the special stock partner if the customer is using decentralized order processing but manages consignment stock centrally.

If you want to process your consignment goods using a special stock partner, you need to:

Create a customer master record for the special stock partner (account groups <b>0001</b> and <b>DEBI</b> are defined for this purpose in the standard version of R/3)

Enter the special stock partner in the relevant customer master record on the partner screen using the partner function SB.

When you create an order for this customer, the system automatically proposes the partner function <b>SB</b> in the document header and the document items. Consignment goods which have been entered in a consignment fill-up are always posted to the stock of the special stock partner when goods issue is carried out.

You can also enter the partner function <b>SB</b> manually in the document header or in the relevant items if a special stock partner is required and is not proposed from the customer master record. If a special stock partner does not exist in the document header, inventory management is carried out using the sold-to party.

Thanks

G. Lakshmipathi

[Former Member]

Hi Vishal

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]

hi

From the point of view of inventory management, consignment stock is managed as special stock in your inventory and is assigned to specific customers. This enables you to keep track of consignment stock by customer.

A special stock partner has been defined for processing consignment stock by means of a third party rather than the customer. This means that all special stock for a particular customer is managed under one partner. It makes sense to use the special stock partner if the customer is using decentralized order processing but manages consignment stock centrally.

If you want to process your consignment goods using a special stock partner, you need to:

Create a customer master record for the special stock partner (account groups 0001 and DEBI are defined for this purpose in the standard version of R/3)

Enter the special stock partner in the relevant customer master record on the partner screen using the partner function SB.

When you create an order for this customer, the system automatically proposes the partner function SB in the document header and the document items. Consignment goods which have been entered in a consignment fill-up are always posted to the stock of the special stock partner when goods issue is carried out.

You can also enter the partner function SB manually in the document header or in the relevant items if a special stock partner is required and is not proposed from the customer master record. If a special stock partner does not exist in the document header, inventory management is carried out using the sold-to party.

<a href="http://help.sap.com/saphelp_470/helpdata/en/4c/420a10470a11d1894a0000e8323352/frameset.htm">http://help.sap.com/saphelp_470/helpdata/en/4c/420a10470a11d1894a0000e8323352/frameset.htm</a>

[Former Member]

Special Stock Partner

The special stock partner has been defined for carrying out consignment stock processing by means of a third party rather than the customer. This means you can manage all special stock under one partner. It makes sense to use the special stock partner if your customer is using decentralized order processing but manages consignment stock centrally.

See this:

http://help.sap.com/saphelp_47x200/helpdata/en/4c/420a10470a11d1894a0000e8323352/frameset.htm

Message was edited by:

sam masker