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Consignment

The document describes the consignment stock process in SAP. There are 4 main transactions: 1) Consignment fill-up where stock is delivered to the customer location without billing; 2) Consignment issue where the customer is billed for stock consumed from the consignment; 3) Consignment returns where defective stock is returned for credit; 4) Consignment pickup where excess stock is returned to the company location. For each transaction, special document types, item categories, and schedule line categories are defined in SAP to manage the consignment stock separately.

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arvind
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294 views

Consignment

The document describes the consignment stock process in SAP. There are 4 main transactions: 1) Consignment fill-up where stock is delivered to the customer location without billing; 2) Consignment issue where the customer is billed for stock consumed from the consignment; 3) Consignment returns where defective stock is returned for credit; 4) Consignment pickup where excess stock is returned to the company location. For each transaction, special document types, item categories, and schedule line categories are defined in SAP to manage the consignment stock separately.

Uploaded by

arvind
Copyright
© © All Rights Reserved
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Consignment Stock Process

CONSIGNMENT STOCK PROCESS


CONSIGNMENT STOCK

S.No Item

Description

Scenario

Some times the business demands that certain Ownership with the
amount of stock is to be maintained at the Company and not
customers location for various reasons like with the customer.
emergency, Just-in-Time supply, irregular
demand / consumption patterns etc.

Examples

Consignment
Stock in SAP

Consignment
Stock Process

1. Big Corporate Hospitals may require


certain stock to be maintained by the
pharma product manufacturer.
2. Piston manufacturer [Automotive] may
plan to place certain stock at the
customers place [Automobile OEM
manufacturer] either to avoid delay in
supply or better customer service etc.
Consignment stock is the stock which is stored This
stock
is
at the customer location but owned by the maintained as special
company. This is based on the agreement.
stock
for
each
customer separately.
In a Consignment stock process company Otherwise
the
places the stock at the customers location and customer can return
the customer pays only for the stock consumed the stock.
from the consignment stock.

Advantages

Disadvantage
s

Special Stock
Partner

SAP SD

1. Availability of stock at the


customers premises at any point of
time.
2. Transportation charges saved.
3. Storage space at the company saved.
4. Better service to the customer etc.
1. There may not be better control on
the stock as it is at the customers
place.
2. Inventory may be blocked.
3. Problem with accountability.

Remarks

The special stock partner is a third party Partner Function


SB
agent who carries our Consignment Stock
SAP
stnd
Acct
Grp
processing instead of the customer himself.
0001
and
DEBI
It makes sense to use the special stock
partner if your customer is using
decentralized order processing but manages

Kiran

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Consignment Stock Process


consignment stock centrally.

Transaction
Flow

There are 4 transactions for processing For each transaction


stock is managed
Consignment Stock in SAP R/3.
separately.
1. Consignment Fill-up
2. Consignment Issue
3. Consignment Returns
4. Consignment Pick-up

TRANSACTIONS IN CONSIGNMENT STOCK PROCESSING


I - CONSIGNMENT FILL-UP
S.No Item
Description
Remarks
The process of delivering stock by the The stock may
Consignment
business to the customer on Consignment is also
be
1
Fill-up
called Consignment Fill-up. That is material maintained
at
is delivered to the Customer without Billing. company.
The details of the material being delivered Stand. Consign.
Consignment
2
as consignment stock are recorded as Fill-up Order Fill-up Order
Consignment Fill-up Order.
CF
Though the material may sit at Customers Billing is not
Ownership /
place the ownership would be with the carried out.
3
Billing
company till Consignment Issue is not
carried out.
The Consignment Stock is managed as To check :
4
Special Stock
special stock which is triggered after PGI in MMBE / MB58
Consignment Fill-up process.
A Sales Document, Consignment Fill-up Item Category
[KB] is created followed by Standard
- KBN
Delivery [LF], Picking and Goods Issue are Sched. Line Cat.
carried out without Billing.
- E0/E1
5

PGI

Process Flow
KE

S.No Item
1

Consignment
Issue Process

SAP SD

LF

2 CONSIGNMENT ISSUE
Description
In a Consignment Issue process Customer
consumes [either for internal consumption or
for resale] the Consignment stock and he is
billed for the same.

Picking

Remarks
Consignment
Issue will have
delivery
and
billing.

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Consignment Stock Process

Consignment
Issue
Ownership /
Billing

Process Flow

When the customer removes some stock from


the Consignment [either for consumption or
resale] this transaction is recorded in the
system as Consignment Issue Order.
During this process ownership of the material
changes. After PGI in CI process the
Customers special stock and company
valuated stock gets deducted.
Consignment Issue Order is followed by
standard delivery[LF], PGI and Billing[F2]

Stand. Consign.
Issue Order - CI
Pricing
and
Billing
are
carried out.
Item Category
- KEN
Sched. Line Cat.
- C0/C1

PGI
KE

S.No Item
01

Consignment
Returns
Process

02

Consignment
Returns Order

03

Ownership /
Billing

04

Process Flow

SAP SD

LF

Picking

F2

3 CONSIGNMENT RETURNS
Description
If the material is found to be defective the
customer places the material back into the
Consignment Stock and a credit memo is
issued.

Remarks
Returns Process
triggers Returns
Delivery and
Billing [Credit
Memo]
Consignment Returns order is a Returns Stand. Consign.
Order which records the details of the Returns Order
material being returned to the consignment
CR
stock.
Here the ownership again is passed on to the Pricing and
company from the customer. After PGI in Billing are
CR process the Customers special stock and carried out.
company valuated stock goes up.
Consignment Returns Order is followed by Item Category
returns delivery [LF], PGR and Billing [RE].
- KRN
Sched. Line Cat.
- D0

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Consignment Stock Process

PGR
CR

LR

4 CONSIGNMENT PICK-UP
S.No Item
Description
Returned material or excess material from
Consignment
the Consignment Stock is brought back to
01 Pick-Up
the company in Consignment Pick-up
Process
Process.
Consignment Pick-up order is an Order
Consignment
which records the details of the material
02
Pick-Up Order being brought back to the company from the
consignment stock.
Here the ownership remains with the
company only. After PGR in CP process the
03 Ownership
Customers
Consignment
stock
is
transferred to Companys stock.
Consignment Pick-up Order is followed by
returns delivery [LR] and PGR.

04

RE

Remarks
Involves Returns
Delivery
Stand. Consign.
Pick-up Order
CP
Billing is not
required.
Item Category
- KAN
Sched. Line Cat.
- F0 /
F1

Process Flow
PGR
CR

SAP SD

LR

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Consignment Stock Process

DOCUMENT TYPE SETTINGS


S.No

Order
Type

Transaction

Document Delivery
Category
Type

Billing
Block

Screen
Seq.
Delivery Group

Billing Type
Order

Consignment
CF
C
LF
AU
Fill-up
Consignment
2
CI
C
LF
F2
F2
AU
Issue
Consignment
3
CR
H
LR
08
RE
RE
Returns
Consignment
4
CP
C
LR
AU
Pick-up
Note : 1. Path - IMG SD Sales Documents Sales Document Header Define Sale Document
Type.
2. Table - TVAK
1

ITEM CATEGORY SETTINGS


S.
No

Transaction

Item
Categ

Spec.
Stock

Pricing

Billin

Bus.
Item

Schd.
Lines

Return

Wt /
Credt
Vol.

Cost

Consignmnt
KBN
Fill-up

Consignmnt
2
KEN
W
X
A
Issue

Consignmnt
3
KRN
W
X
B
Returns

Consignmnt
4
KAN
Pickup
Note : 1. Path - IMG SD Sales Documents Sales Document Item Define Item Category.
2. Table - TVAP
1

SCHEDULE LINE CATEGORY SETTINGS


S.No

Transaction

Schedule
Line
Category

Description

E0

Stock Transfer to
Cons. w/o AC

E1

Stock Transfer to
Cons. with AC

C0

Consignment
Issue w/o AC

C1

Consignment
Issue with AC

Consignment
Fill-up

Consignment
Issue

SAP SD

Movement Type
631
[ GI Consign. Lending ]
631
[ GI Consign. Lending ]
633
[ GI Issue - Customer
Consignment ]
633
[ GI Issue - Customer
Consignment ]

Rel. for
Delvry

Av.
Ch.

TOR

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Consignment Stock Process

634

[ GI Rect. - Customer
Consignment ]
632

Consignment
F0
[ GI Consign.
Pickup w/o AC
Return Delivery]
Consignment
4
Pickup
632

Consignment
F1
[ GI Consign.
Pickup with AC
Return Delivery]
Note : 1. Path - IMG SD Sales Documents Schedule Lines Define Schedule Line Category.
2. Table - TVEP
3

Consignment
Returns

D0

Consignment
Returns

SAP SD

Kiran

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