IBM Business Consulting Services

Consignment Processing

Customer
Special
Stock

Goods Custome Goods

Fill-Up Delivery Issue Delivery Invoice
Issue r1 Issue

Compan
y
Goods Stock
Return Deliver
Issue
y
Goods Unre-
Pick- Delivery Issue stricte
Up
d
Credi
t
M
emo
SD520_45.1 Consignment Processing | © Copyright IBM Corporation 2007
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Consignment Fill-Up

Customer
Special
Stock

Consignme Delivery Goods Customer:

nt Fill-Up Issue 1
(KB)

SD520_45.2 Consignment Processing | © Copyright IBM Corporation 2007

 IBM Business Consulting Services

Consignment Pick-Up
Customer
Special Stock

Consignme Delivery Goods Customer:

nt Fill-Up Issue 1

Company
Stock

Consignme Delivery Goods Unrestricte

nt Pick-Up Issue d
(KA)

SD520_45.3 Consignment Processing | © Copyright IBM Corporation 2007

 IBM Business Consulting Services

Consignment Issue

Customer
Special Stock

Consignme Delivery Goods Customer:

nt Fill-Up Issue 1

Consignme Delivery Goods Invoice

nt Issue Issue
(KE)
SD520_45.4 Consignment Processing | © Copyright IBM Corporation 2007
 IBM Business Consulting Services

Consignment Return

Consignme
Delivery Goods Issue Invoice
nt Issue

Consignme Return Goods Issue

nt Return Delivery
(KR)

Credit
Memo

SD520_45.5 Consignment Processing | © Copyright IBM Corporation 2007

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Vendor Managed Inventory (VMI)

SD520_45.6 Consignment Processing | © Copyright IBM Corporation 2007

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Vendor Consignment Stock

Material Material

Own Material Consignment Material

Inventory Valued Inventory not Valued

Stock on Site
(One Material Number)
SD520_45.7 Consignment Processing | © Copyright IBM Corporation 2007
 IBM Business Consulting Services

SD520 Consignment Processing

Chapter 5 - Consignment Processing

 The 4 steps to consignment and who has physical/financial ownership after

the fill up, issue, return or pick up process:
Order Type Physical Location Financial Owner
1. Fill Up (KB) Customer Plant
2. Issue (KE) Customer Customer
3. Return (KR) Customer Plant
4. Pick Up (KA) Plant Plant

 Although consignment stock still forms part of your company's valuated

stock, it is generally managed separately from other stock for controlled
visibility and managed separately for each customer

SD520_45.8 Consignment Processing | © Copyright IBM Corporation 2007

 IBM Business Consulting Services

SD520 Consignment Processing

Chapter 5 - Consignment Processing (Continued)

 Vendor consignment material is stored by your company, but remains the

property of the vendor until it is taken from the warehouse and consumed
or transferred to your own stock

 In vendor consignment, your material and the consignment material are

managed under the same material number in SAP, yet as separate stock
under the vendor's name

 Vendor managed Inventory allows the vendor to use the customer’s

current stock situation and sales figures to plan replenishment orders for
the customer

SD520_45.9 Consignment Processing | © Copyright IBM Corporation 2007