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VMI laid at customer consignment

Former Member
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Hi Friends,

I have an interesing scenario to be solved.

Our client holds a vendor whos complete products are maitained as a vendor managed inventory in the vendors own storage location. This storage location is a part of our clients Org structure. And this vendor address is created as a seperate plant and assigned to the clients org.

The products from the VMI is shipped directly to their customers. This process is done as similar to all other normal process. Like moving the VMI to the clients inventory and performing a delivery, shipment and billing.

But when it comes to the movement of VMI to a sales consignment of a spl stock partner........... still the Consignment should be a VMI...

Do any one have an idea how to do this....

Regards,

Mahi

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Answers (2)

Answers (2)

Former Member
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Dear Mahi,

With 'consignment fillup', the goods are moved to the consignee's place. in the system consignment material is displayed with special stock indicator. this is just an indication to identify the consigned stock, but the ownership of the material still lies with the consignor i,e. with VMI, till the complete consignment is issued. Since your client maintained VMI as a virtual plant you can carryout consignment process as any other normal consignment business process.

Regards

KV

Edited by: krishna vamshi on Jun 23, 2008 1:39 AM

Former Member
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Hi Mahiban,

i am not getting clearly you requirment but as per my understanding i am giving this one..

The same req is available in my Prj, in this also company will put the stock in the vendor location but the stock is belongs to the company vendor is act like as a C&F this C& F is assigned like plant in the organisation structure..

When the stock is moving from this plant i.e company stock no need of customer consginment..i am ot getting why u r using consginment word in this..

If i am wrong plz give meclarification on this...

Rewards, if it is Useful..

Regards

Durga Prasad..

Former Member
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Hi Prasad,

Thanks for your reply. I thought i was clear in my explanation. Still ill go thro it again.

Our client has a vendor. Normally the materials are shipped from the vendor to the customers. In our normal SAP process we can call this as Third party drop shipment. But the Delivery and shipment documents are being managed by our client in the system. So we decided to use the normal process of sale order. Initilly all the vendor stocks are maintained as VMI and kept at the vendor location. Whenever a shipment is done the VMI is moved to clients stock (only in the sytem) and immendiatly they do a PGI and billing. This is a normal process.

My issue is wht will be the process when the VMI is to be moved to a consignment stock. Initially all the vendor stock are maintained as a VMI in our system. We don have a single movement type to move the VMI to a consignment stock. Can u help me with this. Also pls explain ur scenario bit deep. so that let me check my possibilities.

Once again thanx for ur immediate reply.... expecting urs again....

Regards,

Mahi

Former Member
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Mahi,

At present, even if its a third party order, you move the vendor stock to unrestricted (in your plant) and PGI immediately. Can't you do the same for consignments? First, move the stock to your unrestricted. Then the consignment Fill up order will pick up this stock in the schedule line. Creation of the delivery will move the stock from unrestricted to customer-consignment.

Try it and let me know.

Ashutosh

Former Member
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Hi Ashutosh,

Thank you very much for ur effort. But am afraid i din get a favorable solution. My requirment is even after the stocks are moved to consignment at customer location or to a spl. stock partner, still the stock has to be in VMI and not in our unrestricted stock.

Hope im clear. The stock has to show as in Consignment location but as VMI.

Regards,

Mahi

Former Member
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As I understand, you have set up the Vendor's stock as a Plant in your org structure. The VMI appears in this Plant/ S Loc. Is this stock considered in your availability check?

If so, can the customer consignment (CC) stock be a part of this 'plant'? This way, you dont bring it into your unrestricted stock, but transfer it from VMI to CC.