Consignment in Liquor Sales

[Former Member]

HI Sdites/SDguru's,

I'd like to know whether consignment process can be configured for the below process.

1. Company name is ABC(liquor manufacturers & marketers)

2. SP(Sold to party) is KSBCL(Karnataka state bewerage corporation LTD) ) Bangalore

SH is KSBCL Depot's (53 depot's situated across karnataka

PY is KSBCL Bangalore

BP is KSBCL Depot's (53 depot's situated across karnataka)(Invoice will be raising on Depot's name)

3.ABC company field staff situated across karnataka collect's order from Retailer's(BAR) & consolidates the same order & send's orders as per depot's to ABC company.

4. ABC company does all necessary process to arrange stocks as per depot's requiremnet which was sent by their Field staff's & at the same time ABC company recieve's OFS(order for supply) from KSBCL(B'lore) which will have depot wise requirements for stock(OFS)......

5. After getting OFS from KSBCL(Depot wise) invoicing process starts(Exisable)

Invoicing Process

6. ABC company bills in the name of Respective KSBCL depots (excisable invoice ){ EG- KSBCL, Hubli Depot)

7. Stock delivers to KSBCL respective depots as per the OFS(Order for supply)

8. Respective depot's recieves stocks & bills to bar's(retailers) ---BAR people(retailer) pays cash to KSBCL Depots(53 depots across karnataka) ..Note;- Abc company will not bill to retailers(BAR) instead KSBCL respective depot's bills to retailers on cash basis.

9. Based on KSBCL depot sales---KSBCL -Bangalore releases payments to ABC comapny on weekly basis.

My question is can i configure consignment process here ---i think it's not possible or Shall i go for normal Sales process???????

plz go thru carefully

Kindly reply

Regards,

Rakshith

[Lakshmipathi · Accepted solution]

Dear Raashith

Consignment sales will not be applicable in the scenario what you have explained here. Go for standard OR process since ABC is despatching the material to KSBCL who in turn, is going to effect payment to ABC.

You have indicated that about 53 depots are there. Hence, create seperate sale orders based on ship to party so that your subsequent process is simplified by generating one delivery and invoice per one depot.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Mr.laxmipathy,

I think consignment can be accomodated here rite...

1. consig fill up--Abc to KSBCL depots with proforma invoice & excise invoice.

2. consig issue--KSBCL depots to Cutomers(bar)-Comml invoice with excise...

Waiting for ur reply...plz ask me for any clarification

[Lakshmipathi · Accepted solution]

Dear Raashith

On Comparing your two comments

[PY is KSBCL Bangalore (indicated in your first post)]

[consig issue--KSBCL depots to Cutomers(bar)-Comml invoice with excise (indicated in your second post)]

let me know who is going to pay; is it KSBCL or end customers ?? To answer your question, you should raise commercial invoice on the person who is going to pay your invoice. So decide through which process you should follow.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Dear Mr.Laxmi,

KSBCl(Blore) is my PY not end consumers...

Thanx

[Lakshmipathi · Accepted solution]

Dear Raashith

Let me try to rephrase my suggestion based on your first post above

As per that

- ABC is supplier

- KSBCL is Sold To Party and Payer

- KSBCL Depots are Ship To Party

Right ??

If so, you can go for normal OR process itself. ABC to raise a sale order on KSBCL Bangalore with ship to party as the respective KSBCL depots.

By this, you can raise invoice on KSBCL Bangalore, materials received by concerned depots and payment will be released by KSBCL Bangalore based on your commercial invoice.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

MR.laxmi. tank you....

Am clear & i ve decided to go for standard SD process but i need some strong reason as, why i can't go for consignment process.

Regards,

[Lakshmipathi · Accepted solution]

Dear Raashith

Bcoz, in consignment process, your work will be duplicated as you have to create sale order twice, delivery twice, and invoice generation twice which is not necessary in your case, I feel.

Hope to have given satisfactory explanation to your questions. If so, please close the thread with some validation to the suggestions given.

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

dear laxmikanth..

tanx for the reply

regards,

raashith

[Lakshmipathi · Accepted solution]

Dear Raashith

Please post the name correctly. Also since you are satisfied with the suggestions given, there is a provision to reward some points to the contributor which will help SAP to donate Food Programme. This is another way of expressing thanks to contributor for the time spent

[Lakshmipathi · Accepted solution]

Please go through this link for more information, if you are not aware of this.

[Contributor Recognition Program |https://www.sdn.sap.com/irj/sdn/crphelp]

thanks

G. Lakshmipathi

[Former Member · Accepted solution]

Hi laxmipathi

By considering depot as consignment agent can we do this business in consignment process?

please clarify since our friend also emphasizing more on consignment...your discussion is helpful for all

regards

krishnamohan

[Lakshmipathi · Accepted solution]

Dear krishna mohan

If the process is similar to above, then standard sales process is recommended instead of going for consignment sales.

May be if a new thread is posted with clearly what exactly is the process, a suitable suggestion can be given. Again, as stated above, this is required only if it is different from the above scenario.

thanks

G. Lakshmipathi

[former_member184555]

Hi

You can configure this as normal sales process.

1.The OFS given by the KSBCL will be the PO and referencing that PO the sales order will be created.

2. As the depots are the Ship To parties, for each material in the sales order, you have to create different line items (for different depots) and specify the SH in the partner functions of that line item. It then leads to delivery split.

THanks,

Ravi

[Former Member]

Dear Raashith

The whole scenario can be configured as standard Sales order cycle. The billing can be done as delivery related billing.

If any clarifications please let me know

Reward if useful

Thanks & Regards

Saxena