consignment sale process

[Former Member]

hi gurus,

in consignment sale process we will fill up at customer place after that in consignment issue the material will be issued and we run the cycle as OR-Lf-F2. here how the system know that the material has been issued.

in consignment returns and pick up we run again the OR and LF only, here for the returns process how we do the delivery as well as credit memo.

please help me.

David.

[Lakshmipathi · Accepted solution]

Dear David

For information, there are two types of document types for Consignment fillup process

a) Fillup Process - KB-LF-F8 and

b) Issue Process - KE-LF-F2

In fact in consignment fillup process, we are transferring the goods from FG stores to another warehouse and NOT at customer place, as indicated by you. While making fillup delivery via 631 movement, the stock will be transferred from Unrestricted to "Cust.Consignment". As and when you issue to end customer, you create issue delivery and commercial invoice.

Below is the detailed 4 process of consignment fillup and issue process.

1) Consignment fillup (send materials to customer consignment).

Here you have a consignment fillup order and a consignment fillup delivery.

2) 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).

3) 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).

4) 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

thanks

G. Lakshmipathi

[Former Member]

You have create KE(consignment issue) with refrence to KB(consignment fillup) order as you are doing with refrence to that order it will reduse from the customer stock and allow you trigger billing to that particular customer.

I think this will answer you ,

Thanks

Mahesh

[Shiva_Ram]

Hi,

The system understands based on the item categories;

For consignment fill-up the item category is KBN. When you do fill-up, the stock is reserved as consignment stock for the customer.

For consignment issue, the item category is KEN. When you use the consignment issue order type, then based on the plant and consignment stock, the system picks the correct material. You carry out the delivery and further billing.

The same way for consignment returns, the item category is KRN. When a consignment return order is created, the system places the stock in the same place from where it was issued before. Then an return delivery and further billing document - credit memo is created.

For the consignment pick-up, the item category is KAN. The process is creation of the consignment pick-up order and further inbound delivery.

The consignment fill-up stocks and returns are identified by the system by the special stock indicator, which is set as W in their item categories.

Hope this helps.

Regards

[former_member217082]

Hi david

In consignemnt process we do , consignemnt fillup first where we reserve stock and and we do consignemnt issue to the customer and then if required we go for consignemnt returns and pick up

when you do consignment issue to the customer , you can see the stock as consignment stock in mmbe .

yes in consignemnt returns and pickup we run only KR - LF (for consignemnt returns ) KA - LF (for consignemnt pick up )

as the stock is coming in we do delivery and the picked qty will be zero

Regards

Srinath