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 stock may also be
the business to the customer on maintained at company.
Consignment
1 Consignment is called Consignment
Fill-up
Fill-up. That is material is delivered
to the Customer without Billing.
The details of the material being Stand. Consign. Fill-up
Consignment delivered as consignment stock are Order - CF
2
Fill-up Order recorded as Consignment Fill-up
Order.
Though the material may sit at Billing is not carried out.
Ownership / Customer’s place the ownership
3
Billing would be with the company till
Consignment Issue is not carried out.
The Consignment Stock is managed To check : MMBE /
as special stock which is triggered MB58
4 Special Stock
after PGI in Consignment Fill-up
process.
A Sales Document, Consignment Item Category
Fill-up [KB] is created followed by - KBN
Standard Delivery [LF], Picking and Sched. Line Cat.
Goods Issue are carried out without - E0/E1
Billing.

5 Process Flow PGI

KE LF Picking

2 – CONSIGNMENT ISSUE
S.No Item Description Remarks

SAP SD Kiran
vCentric Consignment Stock Process

In a Consignment Issue process Consignment Issue will

Customer consumes [either for have delivery and
Consignment
1 internal consumption or for resale] the billing.
Issue Process
Consignment stock and he is billed for
the same.
When the customer removes some Stand. Consign. Issue
stock from the Consignment [either Order - CI
Consignment
2 for consumption or resale] this
Issue
transaction is recorded in the system
as Consignment Issue Order.
During this process ownership of the Pricing and Billing are
material changes. After PGI in CI carried out.
Ownership /
3 process the Customer’s special stock
Billing
and company valuated stock gets
deducted.
Consignment Issue Order is followed Item Category
by standard delivery[LF], PGI and - KEN
4 Process Flow
Billing[F2] 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 Returns Process triggers
Consignment
defective the customer places the Returns Delivery and
01 Returns
material back into the Consignment Billing [Credit Memo]
Process
Stock and a credit memo is issued.
Consignment Returns order is a Stand. Consign. Returns
Consignment Returns Order which records the Order –
02
Returns Order details of the material being returned CR
to the consignment stock.
Here the ownership again is passed Pricing and Billing are
on to the company from the carried out.
Ownership /
03 customer. After PGI in CR process
Billing
the Customer’s special stock and
company valuated stock goes up.
04 Process Flow Consignment Returns Order is Item Category
followed by returns delivery [LF], - KRN
PGR and Billing [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 Involves Returns
Consignment
from the Consignment Stock is Delivery
01 Pick-Up
brought back to the company in
Process
Consignment Pick-up Process.
Consignment Pick-up order is an Stand. Consign. Pick-up
Order which records the details of Order –
Consignment
02 the material being brought back to CP
Pick-Up Order
the company from the consignment
stock.
Here the ownership remains with the Billing is not required.
company only. After PGR in CP
03 Ownership process the Customer’s Consignment
stock is transferred to Company’s
stock.
Consignment Pick-up Order is Item Category
followed by returns delivery [LR] - KAN
and PGR. 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 ]
2 Consignment C0 Consignment 633  - -
Issue Issue w/o AC [ GI Issue - Customer
Consignment ]

SAP SD Kiran
 vCentric Consignment Stock Process

633
Consignment   
C1 [ GI Issue - Customer
Issue with AC
Consignment ]
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