Consignment Sales Process in SAP

The consignment process in SAP standard consist of four small processes: Consignment fillup (send materials to customer consignment). Here you have a consignment fillup order and a consignment fillup delivery. 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). 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). 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. Rao *-- Ugameswara

Process Flow for 3rd Party Sales

Customize the third party sales in summary: 1. Create Vendor XK01 2. Create Material Material Type as "Trading Goods". Item category group as "BANS". 3. Assign Item Category TAS to Order type that you are going to use. 4. A sale order is created and when saved a PR is generated at the background 5. With reference to SO a PO is created (ME21N). The company raises PO to the vendor. 6. Vendor delivers the goods and raises bill to company. MM receives the invoice MIRO 7. Goods receipt MIGO 8. Goods issue 9. The item cat TAS or Schedule line cat CS is not relevant for delivery which is evident from the config and, therefore, there is no delivery process attached in the whole process of Third party sales. 10. Billing *-- Seema Dhar

SD - 3rd party sales order Create Sales Order VA01 Order Type Sales org, distr chnl, div Enter Sold to PO # Material Quantity Enter

Save SD - 3rd party sales order View the PR that is created with a third party sales order VA01 Order Number Goto Item Overview Item ->Schedule Item SD - 3rd party sales order View the PR that is created ME52N Key in the PR number Save SD - 3rd party sales order Assign the PR to the vendor and create PO ME57 Key in the PR number Toggle the "Assigned Purchase Requisition" Execute Check the box next to the material Assign Automatically button Click on "Assignments" button Click on "Process assignment" The "Process Assignment Create PO" box , enter Drag the PR and drop in the shopping basket Save SD - 3rd party sales order Receive Goods MIGO_GR PO Number DN Number Batch tab , click on classification Serial Numbers tab Date of Production Flag Item OK Check, just in case Post Save SD - 3rd party sales order Create Invoice MIRO Invoice Date Look for the PO , state the vendor and the Material Check the box Clilck on "Copy" Purchase Order Number (bottom half of the screen) Amount

State the baseline date Simulate & Post Invoice Number *Invoice blocked due to date variance SD - 3rd party sales order Create a delivery order VL01N In the order screen , go to the menu Sales Document , select "Deliver" Go to "picking" tab State the qty and save SD - 3rd party sales order Create a billing document VF01 Ensure that the delivery document is correct in the Enter Go to edit -> Log Save

An Example Of Third Party Sales

Scenario: 2 companies are created in system - India & Singapore Customer places sales order for particular material on Singapore. Singapore is not able to produce the same. They pass on the order to India for processing. After processing India ships the material directly to the customer along with necessary documentation. Invoice copy is passed on to Singapore. Final Commercial Invoice will be raised by Singapore. How can the above scenario handled? By: Balaji You can do this using third party sales. The third party sales process is as under. 1) Singapore company creates an order for the singapore customer. 2) Because of the configuration settings of the sales document type, item category & schedule line category, as soon as the order is saved a PR (purchase requisition) is automatically generated. This is converted into PO (purchase order) and sent to the indan company. 3) Indian company supplies the material directly to the singapore customer. 4) Indian company sends the invoice to the singapore company. 5) Singapore company does the invoice verification in MM using tcode MIRO.

6) Singapore company raises the invoice to the singapore customer. In standard SAP, item category TAS is used for this. The schedule line category is CS. Here you can see a field 'order type' with value 'NB'. This triggers the automatic creation of the PR. Plus in the material master also you need to do certain settings. 1) If you are always following a third party process for a material then you have to create the material using item category group BANS. The procurement type should be marked as external procurement (F) in MRP 2 view of the material master record. 2) If you are not always allowing third party order processing then you can create a material master record with item category group as NORM and the procurement type should be marked as (X) meaning both types of procurement (in house manufacturing and external procurement). In the item category the billing relevance should be 'F'.

What's the difference between schedulling agreement with normal order? What's the condition for us to choose schedule line or order? Answer: A schedule agreement contains details of a delivery schedule but a contract just contains quantity and price information and no details of specific delivery dates Both of them contains schedule line, price, quantity. There are a couple major differences: (1) - Schedule agreements allow you to have 2 different sets of schedule lines (VBEP-ABART). Standard SAP you should have two sets of tabs - of schedule lines. One Forecast & the other JIT. Forecast forwards the schedule lines to planning (seen in MD04) and JIT passes them to shipping (VL10). They can be identical or different. Typically these are used for component supplier customers (namely Automotive). The customer will provide you 4-10 weekly buckets (usually a Monday date) of future forecast qtys. Also send you 1-2 weeks of individual FIRM ship dates - which are entered on the JIT. It comes down to the customer not knowing exactly what they need next week, but they don't want to suprise you with a large order qty, where your lead times are 5+ days. The forecasted qtys they sent last week should account for this. (2) Cumulative Quantities are tracked and influence how the schedule agreement passes requirements to both forecasting and shipping.

These qtys are sometimes requested by the customer on ASNs. Cumulative qtys reset at year end unless you've got a customer calendar or you've modified standard SAP userexits to not reset. Schedule agreements are very nice when the customer sends EDI data (830s = forecast or 862s = JITs). Outside of that they can really cause trouble regarding daily maintenance, missing requirements, cum qty corrections, year end processing, etc. One alternative would be to use customer independent requirements - entering the weekly, monthly forecasting qtys and entering standard sales orders (with or without multiple schedule lines) to represent the true firm qtys. 1. In SAP you will always get integration with other modules. SD will interact with FI, MM will interact with SD :1a. Looking at MM and SD interaction first, take the scenario of a third party order process. This process uses a purchase order (which is sent to your vendor). Also invoice verification is used further along the process to check that the invoice you send to your customer is the same material and quantity as that which the vendor sends to you (but obviously shipped directly to your customer). 1b. Billing is an SD function. But SAP needs to know, when processing a customer's payment, to which GL account the payment has to be processed. For instance payment of a UK based material would be placed in a different GL account to that of a non-UK based material. Furthermore, a UK based customer may have a different GL account to that of an Export customer. This is configured in Account Determination. 2. ABAPers are there to essential do some bespoke development. Your integration, or interaction, with them would be when specifying the tables, fields, input fields, a simple process explanation, data mapping (if doing an interface from one system to another) etc. *-Shahee The link between SD and MM :1. When you create sales order in SD, all the details of the items are copied from Material master of MM. 2. MRP and availibility check related data is also taken from MM although you control this data in SD also. 3. While you create inbound/outbound delivery with reference to a sales order,the shipping point determination takes place with the help of the loading group, plant data, shipping conditions etc. This also refers to Material Master. 4. The material which you are entering in a sales order must be extended to the sales area of your sales order/customer otherwise you cannot transact with this material.

There are many such links between SD and MM. Now the link between SD and FI :1. Whenever you create a delivery with reference to a sales order, goods movement takes place in the bacgground. eg. In case of standard sales order, you create an outbound goods delivery to the customer. Here movement 601 takes place. This movement is configured in MM. Also, this movement hits some G/L account in FI. Every such movement of good s hits some G/L account. 2. The accounts posting in FI is done with reference to the billing documents (invoice, debit note, credit note etc) created in SD. Thus this is a link between SD and FI 3. Tax determination: In case of a tax determination also, there is a direct link between SD and MM

SD Integration points with other modules

SD module is highly integrated with the other modules in SAP.
Sales Order Integration Points Availability Check Credit Check Costing Tax Determination Transfer of Requirements Delivery & Goods Issue Integration Points Availability Check Credit Check Reduces stock Reduces Inventory $ Requirement Eliminated Module MM FI CO/ MM FI PP/ MM Module MM FI MM FI/ CO PP/ MM Module FI/ CO FI/ CO FI/ CO PS Module MM FI FI FI FI

Billing Integration Points Debit A/R Credit Revenue Updates G/ L (Tax, discounts, surcharges, etc.) Milestone Billing Return Delivery & Credit Memo Integration Points Increases Inventory Updates G/ L Credit Memo Adjustment to A/R Reduces Revenue -

Tips by: Subha

SD Transaction Code Flow:

Inquiry / Document type IN Tcode for creation VA11,VA12,VA13. tables VBAK, VBAP Quotation / QT Tcode for creation VA21,VA22,VA23. tables VBAK, VBAP Purchase Order PO Tcode for creation ME21,ME22,ME23. tables EKKO, EKPO. Sales Order OR Tcode for creation VA01,VA02,VA03. tables VBAK, VBAP Delivery LF Tcode for creation VL01,VL02,VL03. tables LIKP, LIPS Billing MN Tcode for creation VF01,VF02,VF03. tables VBRK, VBRP To create a sales order we need purchase order number and custmer number. Before that, to create a purchase order we need to have material no, vendor no. To create vendor tcode is xk01(create), xk02(change) , xk03(display) Tables are lfa1. To create custmer tcode is xd01, xd02, xd03. Table is kna1. After creating sales order using this no we can create delivery note tcode is vl01.

3PL Purchase Order Link To Sales Order

For third party order, either you can create the material master with item category group as BANS, so the system will automatically pick TAS in the sales order for the material or you can change the item category manually to TAS in the order. This will trigger a PR, based on the PR a PO will be generated. Defining Item Category Group IMG -> Sales and Distribution -> Sales -> Sales Documents -> Sales Document Item -> Define

Item category groups Defining Item Category -> Sales and Distribution -> Sales -> Sales Documents -> Sales Document Item -> Define Item Categories Item category TAS Description 3rd party with SN CM Item type Blank Completion rule Blank Special stock Blank Relevant for billing B Billing plan type Blank Billing block Blank Pricing X Statistical value Blank Revenue recognition Blank Delimit. start date Blank Business data item X Sched. line allowed X Item relev. for delivery Blank Returns Blank Weight/Vol.- relevant X Credit active X Determine cost X Aut. batch determ. Blank Rounding permitted Blank Order qty = 1 Blank Incomplete proced. 28 PartnerDetermProced T TextDetermProcedure 01 Item cat. status group 1 Screen seq. group N Status profile Blank Create PO autom. Blank Config. strategy Blank Mat. variant action Blank ATP material variant Blank Structure scope Blank Application Blank Value contract material Blank Contract release ctrl Blank Repair procedure Blank Billing form Blank DIP profile Blank

Assigning Item Category IMG -> Sales and Distribution -> Sales -> Sales Documents -> Sales Document Item -> Assign Item categories Creating Material MM01 1. On the screen Create Material (Initial Screen) enter the material number if External. 2. Choose Select View(s). (Basic View 1&2, Sales Views, Purchasing views and accounting views). 3. Enter the relevant data and save the material. Use material group BANS in the item material group field. Creating SD Pricing Conditions for material VK11 Creating Vendor Master XK01

Partner Determination For Sales Doc

Explain me how to get partner determination for sales doc header level. By: Micro Irrigation First determine one account group ( Trans code OBD2 ) assign number range for acct group ( Trans code OBAR ). Define partner determination procedure: IMG -> SD -> Basic Functions -> Partner Determination -> Setup Partner Determination -> Partner Determination For Sales Doc Header Click on Partner Type Go To New Entries and Define Partner Types Customer KU Vendor LI Contact Person AP Sales Employ SE

Select Partner Type KU and Go To Details Icon and Maintain Partner Functions SP Sold To Party SH Ship To Party BP Bill To Party PY Payer Come Back and Click On Assign Partner Type To Sales Doc Header KU To TA Assign Partner Functions To Account Group SP To ACC GROUP SH BP PY Same. For Sales Doc Header The Partner Functions Can Be Determined From Customer Master. How to customize the Partner Determination Procedure? We can determine partner determination procedure by using the transaction code VOPA. In the business different people interacts to make a transaction with the business while making transactions with the business every partner performs certain roles those are called as a partner functions. Depending on the partner type every partner fulfill certain mandatory partner functions. SAP determines relevant partner functions automatically to relevant partner object type. Flow: Customer master, Sales, Delivery, Billing, Document header and items. A) Partner Types. 1) Customer(KU) He performs partner functions like Sp, Sh, Bp, Py. 2) Vendor(LI) Partner Functions (FA- Forward Agent). 3) Contact Person (AP) Partner Functions-CP.

4) Sales Employee(PE) Partner Funcitons-SE Authorized Partner to release the order Contracts are release by raising sales orders. In the business one specifies partner is authorized to enter and to release contracts. At Header level( sales document) there is a control by which system carries out checks against partner whether he is authorized to release the contract. Partner type(KU) and Partner Functions( AA- Sold T party) to release the contracts. Aw- ship to party to release the contracts and this partner functions assigned to partner determination procedure (kab). Partners to check credit limits: We define partner functions Km-credit Manager. kb- credit representations both belongs to partner type pe(personal) Configurations settings: 1) Define Account Group( OBD2) 2) Assign Number range key to Account Group (OBAR) 3) Define partner determination procedure for customer master. a) Define partner functions Path: Img -> sd -> basic functions -> partner determination -> set up partner determination -> set up partner determination for customer master. Click on partner function control button under dialog structure Partner Function Name Partner type error sp sold to party ku 07 sh ship to party ku 07 bp bill to party ku 07 py payer ku 07 partner type Pe Km credit manager pe kb credit represent pe 09 09

b) Define partner determination procedure. c) Assign partner functions to partner determination procedure. d) Assign partner determination determination procedure to account group. e) Assign partner functions to account group. For sales document. a) Define Partner functions to sales document header 1) Define partner functions img -> sd -> basic functions -> partner determination -> setup partner determination > set up partner determination for sales document header 2) Define partner determination procedure. 3) Assign partner functions to partner determination procedure 4) Partner Determination procedure assignment.

WE20 - How To Determine Process Code

WE20 - Partner Profiles: Inbound Parameters - How to Determine Process Code Process code does not exist f. BBPCO01, BBPIV01. Check and if necessary, correct the following entries: 1. Assign function module to message type Transaction WE57 The following entries are required: Module IDOC_INPUT_BBP_IV IDOC_INPUT_BBP_ACC_PO Type F F Basic type BBPIV01 BBPCO01 Msg type BBPIV BBPCO Direction 2 2

Object type BBPBUS2081 (not for Release 3.1) Note that object type BBPBUS2081 is not defined in Release 3.1*. In this case, the 'Object type' entry remains empty.

2. Characteristics of inbound function modules Transaction BD51 The following entries are required: Inbound FM IDOC_INPUT_BBP_IV IDOC_INPUT_BBP_ACC_PO Input type 1 1 03.09.2008 Page 2 of 3 Note 330401 - Process code does not exist f. BBPCO01, BBPIV01 Dialog allowed No

3. Create the missing process code with Transaction WE42 (change inbound process code). You can name the process code whatever you want. 'IV01' or 'CO01' are examples. The entry should look like this: Process code IV01 (CO01) Description BBPIV (BBPCO) inbound invoice Option ALE Processing with ALE service Processing Type Processing by function module Save the entry. You are then on the detail screen. Enter: Module (inbound) Function module

IDOC_INPUT_BBP_IV (IDOC_INPUT_BBP_ACC_PO) Application object Object type BBPBUS2081 (- no entry -)

4. Maintain the process code that has just been created in the partner profile for the logical system. Transaction WE20 Partner type 'LS'