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vCentric Consignment Stock Process

CONSIGNMENT STOCK PROCESS

CONSIGNMENT STOCK
S.No Item Description Remarks
1 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.

2 Examples 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
customer’s place [Automobile OEM
manufacturer] either to avoid delay in
supply or better customer service etc.
3 Consignment Consignment stock is the stock which is stored This stock is
Stock in SAP at the customer location but owned by the maintained as special
company. This is based on the agreement. stock for each
customer separately.
4 Consignment In a Consignment stock process company Otherwise the
Stock Process 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.
5 Advantages 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.
6 Disadvantage 1. There may not be better control on
s the stock as it is at the customer’s
place.
2. Inventory may be blocked. -
3. Problem with accountability.

7 Special Stock The special stock partner is a third party Partner Function –
Partner agent who carries our Consignment Stock SB
processing instead of the customer himself. SAP stnd Acct Grp -
It makes sense to use the special stock 0001 and DEBI
partner if your customer is using
decentralized order processing but manages

SAP SD Kiran
vCentric Consignment Stock Process

consignment stock centrally.

8 Transaction There are 4 transactions for processing For each transaction


Flow Consignment Stock in SAP R/3. stock is managed
1. Consignment Fill-up separately.
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 Customer’s 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

PGI
5 Process Flow

KE LF Picking

2 – CONSIGNMENT ISSUE
S.No Item Description Remarks
In a Consignment Issue process Customer Consignment
Consignment consumes [either for internal consumption or Issue will have
1
Issue Process for resale] the Consignment stock and he is delivery and
billed for the same. billing.

SAP SD Kiran
vCentric Consignment Stock Process

When the customer removes some stock from Stand. Consign.


Consignment the Consignment [either for consumption or Issue Order - CI
2
Issue resale] this transaction is recorded in the
system as Consignment Issue Order.
During this process ownership of the material Pricing and
Ownership / changes. After PGI in CI process the Billing are
3
Billing Customer’s special stock and company carried out.
valuated stock gets deducted.
Consignment Issue Order is followed by Item Category
standard delivery[LF], PGI and Billing[F2] - KEN
4 Process Flow
Sched. Line Cat.
- C0/C1

PGI

KE LF Picking F2

3 – CONSIGNMENT RETURNS
S.No Item Description Remarks
If the material is found to be defective the Returns Process
Consignment customer places the material back into the triggers Returns
01 Returns Consignment Stock and a credit memo is Delivery and
Process issued. Billing [Credit
Memo]
Consignment Returns order is a Returns Stand. Consign.
Consignment Order which records the details of the Returns Order –
02
Returns Order material being returned to the consignment CR
stock.
Here the ownership again is passed on to the Pricing and
Ownership / company from the customer. After PGI in Billing are
03
Billing CR process the Customer’s special stock and carried out.
company valuated stock goes up.
04 Process Flow Consignment Returns Order is followed by Item Category
returns delivery [LF], PGR and Billing - KRN
[RE]. Sched. Line Cat.
- D0

SAP SD Kiran
vCentric Consignment Stock Process

PGR

CR LR RE

4 – CONSIGNMENT PICK-UP
S.No Item Description Remarks
Returned material or excess material from Involves Returns
Consignment
the Consignment Stock is brought back to Delivery
01 Pick-Up
the company in Consignment Pick-up
Process
Process.
Consignment Pick-up order is an Order Stand. Consign.
Consignment which records the details of the material Pick-up Order –
02
Pick-Up Order being brought back to the company from the CP
consignment stock.
Here the ownership remains with the Billing is not
company only. After PGR in CP process the required.
03 Ownership
Customer’s Consignment stock is
transferred to Company’s stock.
Consignment Pick-up Order is followed by Item Category
returns delivery [LR] and PGR. - KAN
Sched. Line Cat.
- F0 /
F1
04 Process Flow
PGR

CR LR

SAP SD Kiran
vCentric Consignment Stock Process

DOCUMENT TYPE SETTINGS


Billing Type Screen
Order Document Delivery Billing
S.No Transaction Seq.
Type Category Type Block Order Delivery Group
Consignment
1 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

ITEM CATEGORY SETTINGS


S. Item Spec. Bus. Schd. Wt /
Transaction Pricing Billin Return Credt Cost
No Categ Stock Item Lines Vol.
Consignmnt   
1 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

SCHEDULE LINE CATEGORY SETTINGS


Schedule
Rel. for Av.
S.No Transaction Line Description Movement Type TOR
Delvry Ch.
Category
631
Stock Transfer to 
E0 [ GI Consign. - - -
Cons. w/o AC
Consignment Lending ]
1
Fill-up 631
Stock Transfer to   
E1 [ GI Consign. -
Cons. with AC
Lending ]
633
Consignment 
C0 [ GI Issue - Customer - -
Issue w/o AC
Consignment Consignment ]
2
Issue 633
Consignment   
C1 [ GI Issue - Customer
Issue with AC
Consignment ]

SAP SD Kiran
vCentric Consignment Stock Process

634
Consignment Consignment 
3 D0 [ GI Rect. - Customer - -
Returns Returns
Consignment ]
632
Consignment 
F0 [ GI Consign. – - -
Pickup w/o AC
Consignment Return Delivery]
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

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SAP SD Kiran