The consignment process in SAP standard consist of four small processes: Consignment fill-up (send materials to customer consignment). Here you have a consignment fill-up order and a consignment fill-up 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 fill-up 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. Process Flow: Consignment Fill Up: • • • • Create Consignment fill up (KB) using VA01 Outbound Delivery using VL01N Perform picking, packing and Goods issue using VL02N (Special Stock (W) Customer Consignment will be debited) Create Proforma invoice (If Required) using VF01 Consignment Issue: • • • • Create Consignment fill up (KE) using VA01 Outbound Delivery using VL01N Perform picking, packing and Goods issue using VL02N Create Commercial invoice using VF01 Consignment Return: • • • • Create Consignment fill up (KR) using VA01 Outbound Delivery using VL01N Perform picking, packing and Post Goods Receipt using VL02N Create Credit Memo using VF01 Consignment pick Up: • • • Create Consignment Pick Up (KA) using VA01 Outbound Delivery using VL01N Perform picking, packing and Post Goods Receipt using VL02N Upon consignment pick up remaining stock from the customer consignment (W) will be posted back to unrestricted stock It is defined in 4 steps. 1. Consignment fill up: Sales document type is KB Item category KBN schedule line category E1 In this step, you are not invoicing the customer. document flow is sales order - delivery item category. It will not be relevant 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 schedule line category: C0 or C1 Here you are invoicing the customer (because he used the goods). you are assigning the delivery document and billing document to the sales document. In item category, you are setting relevant for billing, pricing, special stock. In schedule line category, your setting is 633 movement type, relevant for availability check & TOR. 3. Consignment Return: Customer found that some goods are damaged, or he is not able to sell the goods, he wants to send it back. Hence you are creating this document. Sales document type: KR Item category: KRN Schedule 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 relevant 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 return delivery to sales document type. Sales document: KA Item category: KAN schedule line category: F0 & F1 Your setting item category relevant for returns. any schedule line category relevant for 632 movement type, MRP, availability check, delivery. Now you check your plant stock. Stock will increase Steps for executing consignment process within SAP As you can imagine from the above example, execution of a consignment process in an end to end manner requires several steps. These steps happen in different time period in real life. Let us look at these four stages in consignment process. 1. 2. 3. 4. Consignment Fill-up Consignment Issue Consignment Return Consignment Pickup Consignment Fill-up It is a process in which products are filling up at the customer site from company warehouse, but the owner of the stock is the company itself. Sales order type for consignment fill-up is CF. The following are the steps to perform consignment fill-up in SAP. Step 1: • Enter transaction code VA01 in SD Master Data Screen. Step 2: • • Enter order type as CF, sales organization, distribution channel, and division. In our example sales organization is 1000, distribution channel is 10, and division is 00. Step 3: • • • • Enter sold-to-party, ship-to-party, and PO number. Enter Material and quantity of a product. Click on Save. In our example, sold-to-party is 1000, ship-to-party is 1000, PO number is 50, material is R-1140, and quantity is 20. • The following message will be displayed. Consignment Issue The customer can sell or utilize the product at any time and company will issue the invoice for the used product. This invoice is called as consignment issue. Sales order type for consignment issue is CI. The following are the steps to perform consignment issue in SAP. Step 1 • • • Enter transaction code VA01 in SD Master Data Screen. Enter order type as CI, sales organization, distribution channel, and division. In our example sales organization is 1000, distribution channel is 10, and division is 00. Step 2: • • • • Enter sold-to-party, ship-to-party, and PO number. Enter Material and quantity of a product. Click on Save. In our example, sold-to-party is 1000, ship-to-party is 1000, PO number is 50, material is R-1140, and quantity is 20. • The following message will be displayed. Consignment Return The customer can return the product due to damage, poor quality, expiry to the company. This is called as Consignment return. Sales order type for consignment return is CONR. The following are the steps to perform consignment return in SAP. Step 1: • • • Enter transaction code VA01 in SD Master Data Screen. Enter order type as CONR, sales organization, distribution channel, and division. In our example sales organization is 1000, distribution channel is 10, and division is 00. Step 2: • • • • • Enter sold-to-party, ship-to-party, and PO number. Enter Material and quantity of a product. Select Order Reason as Damaged in transit from drop-down. Click on Save. In our example, sold-to-party is 1000, ship-to-party is 1000, PO number is 50, material is R-1140, and quantity is 20. • The following message will be displayed. Consignment Pickup When a customer requests the company to take back the damaged or poor-quality products, then the company will take back the products from customer warehouse. This is called as Consignment pickup. Sales order type for consignment pickup is CP. The following are the steps to perform consignment pickup in SAP. Step 1: • • • Enter transaction code VA01 in SD Master Data Screen. Enter order type as CP, sales organization, distribution channel, and division. In our example sales organization is 1000, distribution channel is 10, and division is 00. Step 2: • • • • • Enter sold-to-party, ship-to-party, and PO number. Enter Material and quantity of a product. Select Order Reason as Returns from drop-down. Click on Save. In our example, sold-to-party is 1000, ship-to-party is 1000, PO number is 50, material is R-1140, and quantity is 20. • The following message will be displayed. By following the above steps, you can carry out consignment process in SAP. Another blog post containing how to configure consignment process will be taken up in future. We sincerely hope that this was useful, and any comment of feedback will be very helpful.
