consignment process.pdf

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4.7

March 2004

English

Customer Consignment

Process (J58)

SAP AGNeurottstr. 1669190 WalldorfGermany

Business Process Procedure



SAP Best Practices Customer Consignment Process (J58): BPP

© SAP AG Page 2 of 24

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ICONS

Icon Meaning

Caution

Example

Note

Recommendation

Syntax

TYPOGRAPHIC CONVENTIONS

Type Style Description

Example text Words or characters that appear on the screen. These include fieldnames, screen titles, pushbuttons as well as menu names, paths andoptions.

Cross-references to other documentation.

Example textEmphasized words or phrases in body text, titles of graphics and tables.

EXAMPLE TEXT Names of elements in the system. These include report names,program names, transaction codes, table names, and individual keywords of a programming language, when surrounded by body text, forexample, SELECT and INCLUDE.

Example text Screen output. This includes file and directory names and their paths,messages, source code, names of variables and parameters as well asnames of installation, upgrade and database tools.

EXAMPLE TEXT Keys on the keyboard, for example, function keys (such as F2) or the

ENTER key.

Example text Exact user entry. These are words or characters that you enter in thesystem exactly as they appear in the documentation.

<Example text> Variable user entry. Pointed brackets indicate that you replace thesewords and characters with appropriate entries.





ABBREVIATIONS

R Required entry field

(used in the end-user procedures)

O Optional entry field


C Conditional field






Contents

Contents .......................... .......................... .......................... ........................... ......................... 5

J58 Customer Consignment Process...................... .......................... .......................... ..................... 6

Purpose............................... ........................... .......................... .......................... ......................... 6

Consignment Fill-Up ......................... .......................... ........................... .......................... ............ 6

Consignment Fill-Up Order .......................... .......................... .......................... ......................... 6

Delivery for Consignment Fill-Up ......................... ........................... .......................... ................ 7

Picking for Consignment Fill-Up................................ ........................... .......................... ........... 8

Goods Issue for Consignment Fill-Up ............................ .......................... .......................... ..... 10

Stock Overview after Consignment Fill-Up.............................. .......................... ...................... 11

Billing for Consignment Fill-Up............... ........................... .......................... ............................ 12

Consignment Issue........................... ........................... .......................... .......................... .......... 12

Consignment Issue Order........ ........................... ............................. .......................... ............. 12

Delivery for Consignment Issue ............................ .......................... .......................... .............. 13

Picking FOR CONSIGNMENT ISSUEUse .............................. .......................... ...................... 14

Goods Issue for Consignment Issue .............................. .......................... ........................... .... 14

Billing for Consignment Issue .......................... .......................... ........................... .................. 15

Consignment Pick-up.............. ........................... .......................... ............................. ................. 16

Consignment Pick-Up Order............................ ........................... .......................... .................. 16

Delivery for Consignment Pick-Up ............................ ........................... .......................... ......... 17

Goods receipt for Consignment Pick-Up ............................ .......................... ........................... 18

Billing for Consignment Pick-Up....................................... ........................... ............................ 19

Consignment Return.............................. .......................... ........................... .......................... ..... 19

Consignment Return Order.......................... .......................... .......................... ....................... 19

Delivery for Consignment Return......................... ........................... .......................... .............. 20

Goods Receipt for Consignment Return.................................... ............................ .................. 21

Release Credit Memo to Billing......... ........................... ............................ ........................... .... 22

Billing for Consignment Return ............................. .......................... .......................... .............. 23





J58 Customer Consignment Process

Purpose

This scenario describes how finished products and trading goods are handled within a consignmentprocess, i.e. when the products, shipped to the customer are still owned by the company until theyare sold by the customer to a third party. The materials, which are usually stored in the customer’sstore or warehouse, are posted in a stock (consignment stock) that is assigned to the correspondingcustomer. This allows the customer’s current stock to be viewed at any time.

When billing is carried out, the material prices are posted to the corresponding accounts and costcenters.

Consignment Fill-Up

Consignment Fill-Up Order

Use

Even a consignment fill-up does not represent a real physical sale of goods to a customer themechanism’s during the order entry are the same as for a standard order entry, e.g. when an orderis entered, an availability check is performed for the material, and the shipping point is determinedautomatically.

Prerequisites

The required master data (for example, customer, articles, prices, conditions, batches) must bemaintained. To represent the entire process flow of, there must be a sufficient stock quantity of thematerials in the corresponding plant (BP01) by installing Building Block J64 or J49 or post initial

stock directly.

Procedure

1. Access the activity using one of the following navigation options:

Menu path Logistics Sales and Distribution SalesOrder Create

Transaction code VA01

2. Make the following entries:

Field name Description R / O / C User action and

values

Note

Order type R KB Consignment fill-up

Sales organization BP01 Sales Org. BP01

Distr. channel 01 Direct sales

Division 01 Product Division 01

Enter





Sold-to party R C6100

Purch. ord. no. R <Purch. ord. no.>

Material R C20040

Order quantity R 100

Material R C20050


Enter

Save alternatively: Ctrl + S

Result

A complete consignment fill-up order exists. Note that the sales order does not contain anypricing conditions (different from zero).

Delivery for Consignment Fill-Up

Use

When the delivery is created, a new availability check is performed.

Prerequisites

A complete consignment fill-up order exists.

Procedure

1. Access the transaction choosing one of the following navigation options:

Menu path Logistics Sales and Distribution Shipping and Transportation

Outbound Delivery Create Single DocumentWith Reference to SalesOrder

alternatively:

Logistics Logistics Execution Outbound Process Goods Issue for

Outbound Delivery Outbound Delivery Create Single Document With Reference to Sales Order

Transaction code VL01N


Field name Description R / O / C User actionand values

Note

Shipping point R BP01 Shipping Point BP01

Selection date Selection date for thedelivery

<Date> Current date + 10days





Order Number of sales order R <Order number>

Enter


Result

The system contains a complete delivery document.

Picking for Consignment Fill-Up

Use

As the picking quantities reflect the physically picked quantities of specific batches transferred to thecustomer’s site, the batch determination has to be carried out before the picking quantity can beentered. The batch determination may be triggered automatically during delivery creation ormanually. Usually automatic batch determination will be carried out automatically. However, if no

batch matches the selection criteria, the batch determination can be triggered manually. Thefollowing scenario will explain the manually triggered batch determination.

Prerequisites


Procedure


Menu path Logistics Logistics Execution - Outbound Process Goods Issue for

Outbound Delivery Outbound Delivery Change Single Document



Field name Description R / O / C User action and values Note

Outbound delivery Number of delivery R <Delivery number>

Enter

Menu Goto Item Batch split

Batch Choose New batch determination

Screen: Batch Determination SD: Select BatchesBatch Determination:

Fieldname

Description Req./Opt. /Dep.

User action and values Comment

Choose Selection criteria(optional you can also createyour own selection criteria)





Enter

Choose Strategy info...

Sort rule FIFO expiration

date, shelf life

023_001S Sort:

MHD / Exp. Date All available batchesare displayed.

Cancel

Choose Copy The proposed (orentered) quantities perbatch are copied intothe delivery document

Back

Picking quantity:

Fieldname

Description R / O / C User action and values Note

Batch

Display batchstructure

Select Batch Split Indicator

PickQuantity

C20040

C20050

100

100

Enter Overall status pickingto C = fully picked

Save

Result

A fully processed picking document exists (overall status picking: C = fully picked)





Goods Issue for Consignment Fill-Up

Use

After the goods have been picked, the delivery is posted for goods issue. When the goods issue isposted, the transfer to the consignment stock is carried out.

No accounting and controlling documents are generated, since this is a transfer within the sameplant (even though the product is no longer physically stored in the warehouse but shipped to thecustomer site).

Prerequisites

A fully processed picking document exists (overall status picking to C = fully picked)

Procedure


Menu path LogisticsLogistics Execution Outbound Process - Goods Issue for

Outbound Delivery - Post Goods Issue - Outbound. Delivery SingleDocument





Select Post goods issue

Result

The goods issue for the delivery has been posted. The goods issue document has "completed"status.

The document flow should appear as follows (Menu: Environment Document flow):

Document Date Overall Processing

Status

. BP Consign. Fill-up <Doc No> <Date> completed

BP Consignment Deli.<Doc No> <Date> completed

. Picking request <Doc No> <Date> completed

. Confirmation of service <Date> completed

. Confirmation of service <Date> completed

. GI consgmt: lending <Doc No> <Date> completed





Stock Overview after Consignment Fill-Up

Use

The goods are now in the customer's consignment stock. The stock overview will reflect this transferof products

Prerequisites

A fully processed delivery document exists.

Procedure


Menu path LogisticsMaterials Management Inventory Management - Environment

- Stock - Stock Overview

Transaction code MMBE


Field name Description Ent./Opt./Dep User action and values Note

Material R C20040respectivelyC20050

Plant BP01

Stock typeselection

Also select specialstocks indicator

Execute Alternatively: F8

Select Customerconsignment

Choose

Result

The stock of 100 pieces has been posted to the Customer C6100. The stock overview for customerconsignment of material C20040 as well as C20050 in plant BP01 appears as follows:

Stock type Customer Consignment

Customer C6100

Unrestricted use 100.000Quality inspection 0.000

Restricted use 0.000

Alternatively, the consignment stocks can be queried directly via transaction MB58 (Displayconsgnmt and return. pack. stocks at customer )





Billing for Consignment Fill-Up

Use

No billing is carried out.Order and delivery status are "completed" after the goods issue.

Consignment Issue

At regular intervals, the customer reports either how many articles he has sold, or how many articlesare in his current stock (inventory):

A corresponding order is entered, which documents the issue from the consignment stock.

A billing document is created for the issue from the external stock at the customer’s site.

Consignment Issue Order

Use

The articles sold by the customer are entered in the corresponding quantities. When an order isentered, an availability check is performed for the material against the customer’s stock. The pricingprocedure is carried out as usual.

Prerequisites

The required master data (e.g. customer, articles, prices, conditions, batches) must be maintained in

the system. The consignment fill-up process has been completed.

Procedure


Menu path Logistics Sales and Distribution Sales Order Create



Field name Description R / O / C User action and

values

Note

Order type R KE Consignment issue




Enter







Material R C20040

Order quantity R 55

Material R C20050


Enter


Result

A complete consignment issue order exists.

Delivery for Consignment Issue

Prerequisites

A complete consignment issue order exists.

Procedure



Outbound Delivery Create Single Document With Reference to SalesOrder

alternatively:

Logistics Logistics Execution Outbound Process Goods Issue for

Outbound Delivery - Outbound Delivery Create Single Document With Reference to Sales Order





Selection date Selection datefor the delivery

<Date> Current date + 10days

Order Number ofsales order

R <Order number>

Enter






Result

A complete delivery exists. Batch determination is done automatically during delivery creation.

Picking FOR CONSIGNMENT ISSUEUse

No picking needs to be carried out.

Goods Issue for Consignment Issue

Use

After the goods have been delivered, the delivery is posted for goods issue.

When the goods issue is posted, the transfer from the consignment stock is carried out.

This means that the article is no longer the property of the company. Appropriate accounting andcontrolling documents are generated.

PREREQUISITES


Procedure


Menu path Logistics Logistics Execution Outbound Process Goods Issue for

Outbound Delivery Post Goods Issue Outb. Delivery Single Doc.





Select Post goods issue

Result

The goods issue for the delivery is posted, and the goods issue document has status "completed",whereas the delivery is still “Being processed”.





Billing for Consignment Issue

Use

Once the goods issue has been posted, the delivery can be invoiced.

Prerequisites

A delivery with goods issue posting is required for billing.

Procedure


Menu path Logistics Sales and Distribution Billing Billing document - Create

alternatively:

LogisticsLogistics Execution Outbound Process Goods Issue for

Outbound Delivery Billing Billing document Create

Transaction code VF01


Field name Description R / O / C User action andvalues

Note

Document Number of delivery R <Delivery number>

Execute alternatively: Shift + F1


Result

A billing document has been generated and the delivery status is now completed. The correspondingdocuments were generated for financial accounting, profitability analysis, and cost centeraccounting.

The stock of 55 pieces of C20040 and 100 pieces of C20050 was posted for goods issue. Thecurrent stock overview for material C20040 in plant BP01 appears as follows:


Customer C6100

Unrestricted use 45.000

Quality inspection 0.000






Consignment Pick-up

Goods that are not required or sold can be returned from the customer back to the centralwarehouse. The goods must not be defective. They are posted directly into free stock.

Only goods that still belong to the company can be returned by means of this process. Thisis not a return scenario in the strict sense of the term, but rather a stock transfer from theconsignment store to the central warehouse.

Consignment Pick-Up Order

Use

The consignment pick-up triggers the return of goods from the customer’s custody.

Just as there can be various reasons for the return, the physical inbound delivery of the goods fromthe customer to the central warehouse can have various features. The customer can write or phoneto request that the goods be picked up, or can deliver the goods himself. The return can also beinitiated by office-based personnel (for example, call back for expiring or defective articles).

When an order is entered, an availability check is performed for the material against the customer’sstock.

While the orders are being handled, the shipping point is determined automatically.

An order reason for the consignment pick-up must be entered.

Prerequisites A consignment stock exists for the customer.

Procedure






Note

Order type R KA Consignment Pick-up








Enter


Purch. ord. no. O <Purch. ord. no.>

Material R C20040

Order quantity R 45

Order reason R 101Consignment pick-up: leftover

Select order reason(variable)

Enter


Result

A complete consignment pick-up order exists.

Delivery for Consignment Pick-Up

Use

A delivery of the type YB2 (returns delivery) will be created. When the delivery is created, a newavailability check is performed. Batch is entered manually in the delivery for the returned products.

Prerequisites

A complete consignment pick-up order exists.

Procedure




alternatively:

LogisticsLogistics Execution Outbound ProcessGoods Issue for










Selection date Selection date

for the delivery

<Date> Current date


R <Order number>

Enter

Picking tab Click the tab ‘Picking’

Batch <Batch number> Locate the relevantbatch in theassociated delivery.E.g. Batch can besearched via ‘Batchfor Plant Material


Result


Goods receipt for Consignment Pick-Up

Use

When the goods issue is posted, the transfer from the consignment stock is carried out at the

same time as the direct posting into the free stock of the central warehouse. No quality inspectiontakes place.

No accounting and controlling documents are generated, since this is a transfer within the sameplant.

Prerequisites

A complete delivery document exists.

Procedure


Menu path LogisticsLogistics Execution Outbound Process - Goods Issue forOutbound Delivery -Post Goods Issue -Outb. Delivery Single Doc.









Select Post goods receipt

Result

The goods issue for the return delivery has been posted.

The goods issue document has "completed" status.

The document flow should appear as follows:

Document Date Overall Processing Status

. Consignment pick-up <Doc No> <Date> completed

Returns delivery <Doc No> <Date> completed

. GI consgmt: ret delvy <Doc No> <Date> completed

The issue sends the remaining 45 pieces of C20040 back to the distribution center. Consequently, atthe end of the scenario, there should be no stock of article C20040 in the customer’s consignment.

Billing for Consignment Pick-Up

Use

No billing is carried out.

Consignment Return

Goods that are sold to end customer (consumer) from consignment customers can be returned backto the consignment customer. The goods must not be defective. They are posted into customerconsignment stock.

This is not a consignment pick up scenario in the strict sense of the term, but rather acustomer return from the consignment customer though products are still in consignee’slocation physically.

Consignment Return Order

Use

The consignment return triggers the return of goods from the consumer to consignee.

When the orders are being handled, the shipping point is determined automatically.

An order reason for the return must be entered.





Prerequisites

A stock must not belong to the company.

Procedure






Note

Order type R KR Consignment Return




Enter



Material R C20040

Order quantity R 45

Order reason R 101 Select order reason(variable)

Enter


Result

A complete consignment return order exists.

Delivery for Consignment Return

Use A delivery of the type YB2 (returns delivery) will be created. When the delivery is created, batch ofthe returned products must be entered manually.

Prerequisites

A complete consignment return order exists.





Procedure




alternatively:

LogisticsLogistics Execution Outbound ProcessGoods Issue for






Selection date Selection datefor the delivery

<Date> Current date


R <Order number>

Enter

Picking tab Click the tab ‘Picking’

Batch <Batch number> Locate the relevantbatch in theassociated delivery.

E.g. Batch can besearched via ‘Batchfor Plant Material’.


Result


Goods Receipt for Consignment Return

Use

When the goods issue is posted the stock of the returned products are booked under CustomerConsignment Stock.

Prerequisites

A return delivery is created.





Procedure


Menu path LogisticsLogistics Execution Outbound Process - Goods Issue for

Outbound Delivery -Post Goods Issue -Outb. Delivery Single Doc.





Select Post goods receipt

Result

The goods receipt for the return delivery has been posted.

The goods issue document has "completed" status.

The document flow should appear as follows:

Document Date Overall Processing Status

. Consignment return <Doc No> <Date> being processed

Returns delivery <Doc No> <Date> completed

. GI consgmt: ret delvy <Doc No> <Date> completed

Release Credit Memo to Billing

Purpose/Use

Customizing settings are made to ensure that manual release of the order for the bill is necessary.This is done to ensure that the entries are correct.

Procedure

1. Access the transaction using:

Menu Not available in standard SAP menu pathTransaction code V.23

2. Enter the necessary data.

Field name Description User action and values Comment

Sales organization BP01





SD document Consignment return order no. If unknown, skip.

BUTTON Execute

CHOOSE Consignment return

order no.BUTTON Delete billing block

Back

Back

Billing for Consignment Return

Use

Once the goods receipt has been posted, the delivery can be invoiced.

Prerequisites

A delivery with goods receipt posting is required for billing.

Procedure

1. Call up the transaction as follows:

Menu path Logistics Sales and Distribution Billing Billing document - Create

alternatively:

LogisticsLogistics Execution Outbound Process Goods Issue forOutbound Delivery Billing Billing document Create

Transaction code VF01



Note

Document Number of delivery R <Delivery number>

Execute alternatively: Shift + F1


Logistics Salesand distribution

Billing Billing

document Change

‘Credit memo no.’

R button Release to Accounting

Release to FI/CO




O button Accounting

Dialog-box List of documentsin accounting

Double-click Accountingdocument

The various accountsand offsetting entries arelisted.

Back

Result

A credit memo document has been generated and the delivery status is now completed. Thecorresponding documents were generated for financial accounting, profitability analysis (if J17 hasbeen installed), and cost center accounting.

The stock of 45 pieces was posted to the customer consignment stock again. The stock overview formaterial C20040 in plant BP01 appears as follows:


Customer C6100

Unrestricted use 45.000

Quality inspection 0.000


Documents

consignment process.pdf