Consignmnet Stock process

[Former Member]

Dear All,

Can any one please tell me detailed settings in IMG for consignmnet stock process.

Please send me relevant configuration.

Thanks in advance

Regards

guest

[Lakshmipathi]

Hi Aguest

Go through the link

http://help.sap.com/saphelp_46c/helpdata/en/dd/55ffe4545a11d1a7020000e829fd11/frameset.htm

Thanks

G. Lakshmipathi

[Former Member]

Consignment Sales Process in SAP

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.

REWARD IF U FINDS THIS AS USEFUL.

MCM

[Former Member]

<b>Make Small Search in sdn , You can have several posts on the issue</b>

[Former Member]

<b>Consignment goods</b> are goods which are stored at the customer location but which are owned by your 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 which are not required.

Consignment processing offers the participating partners several advantages. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken.

consignment stock must be

Managed separately from the rest of your stock so that you know exactly what stock is stored at the customer location

Managed separately for each customer

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

If the consignment stocks are not managed by the sold-to party but by a central office, you can use the partner function for special stock partner.

<b>Prerequisites

Special Stock Partner</b>

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.

Inventory Management Using the Special Stock Partner

If you want to process your consignment goods using a special stock partner, proceed as follows:

Create a customer master record for the special stock partner (account groups 0001 and DEBI are defined for this purpose in the standard system).

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.

<b>Process Flow</b>

There are four main transactions for processing consignment stock in the R/3 System, all of which support separate management of stock:

Creating a Consignment Fill-Up

Creating Consignment Issue

Creating a Consignment Pick-Up

Displaying Consignment Returns

<b>Consignment fill-up</b>

Consignment fill up is used to supplement the customer’s consignment stock.

Goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock). The goods remain in the possession of the vendor.

When you ship consignment stock to the customer, you record the transaction by creating a consignment fill-up order (order type KB). As a result, the system carries out the following actions:

If special stock does not yet exist in your inventory for the customer (or special stock partner), the system creates it when goods issue is posted

The relevant quantity is removed from regular inventory in your plant and is added to the special stock for the customer. The total valuated stock for the plant remains the same.

The transaction is not relevant for pricing since the consignment stock remains the property of your company.

Consignment pick-up

Consignment issue enables the customer to take consignment goods from the special stock for their use or to sell.

Consignment issue involves removing the goods from the special stock and making it the property of the customer.

When the customer removes consignment stock to use or sell, you record the transaction in the system by creating a consignment issue order (order type KE). As a result, the system carries out the following actions:

When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock.

The transaction is relevant for pricing since the goods now become the property of the customer.

<b>Consignment issue</b>

Any consignment goods stored at the customer’s warehouse that haven’t been used can be reposted to your company’s warehouse with a consignment pick-up.

If the customer returns consignment stock to you, you record the transaction in the system by creating a consignment pick-up order (order type KA). As a result, the system carries out the following actions:

When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into your regular stock at the plant where the goods are returned. Your total valuated stock remains the same since the returned stock was regarded as part of your own inventory even while it was at the customer’s premises.

This transaction is not relevant for billing.

Consignment return

<b>Consignment returns</b> are used for when your customer wants to return goods to the consignment stock.

If the customer wishes to claim on consignment goods which have already been issued, you can record this transaction by creating a consignment return order (order type KR). As a result, the system carries out the following actions:

When goods issue is posted, the relevant quantity is added to the customer’s special stock at the plant where the goods are returned

Since the ownership of the goods is passed from the customer back to your company, the transaction is relevant for billing. In this case, the customer receives a credit memo for the returned goods.

Depending on the settings in Customizing for Sales, you can create consignment returns with direct reference to a consignment issue. The consignment issue appears in the document flow for the consignment return. This function is not supported in the standard version of the SAP R/3 System.

When you create consignment returns in the standard version of the SAP R/3 System, the system automatically sets a billing block. To credit a return, you must first approve the request for a credit memo by removing the billing block in the return header. You can control the automatic setting of a billing block in Customizing for Sales.

The following table provides an overview of the order types used in the standard system for processing consignments:

Transaction

Sales order type

Consignment fill-up

KB

Consignment issue

KE

Consignment pick-up

KA

Consignment return

KR

Pricing and Availability Check

Whether pricing is carried out for the individual transactions depends on the item category. The schedule line category controls the availability check and the transfer of requirements in each of the transactions. The schedule line category itself is determined by the item category and the MRP type of the material. The order types KE and KA check against the consignment stock for the customer involved and order type KB checks against your own plant stock. Requirement records for consignment stock are stored as individual requirements, independently of the setting in the material master

Message was edited by:

sam masker