Customer Consignment

Topic :Customer Consignment

Exercise: Add initial stock

Purpose of ExerciseIn order to run through this sales scenario, you have to have materials available in stock. Once you create the initial stock, you will have ample stock available to run the sales process. Once the stocks have been used up, execute this activity again to create more.

Menu Path: Logistics Materials Management Inventory Management Goods Receipt Other

Transaction Code: MB1C

Movement type : 561 (initial stock) Plant : 1000 Storage Loc : 0001 Enter Material : CPEN_ _ _ Quantity : 500

(Save)

Record the system message:Message

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Special Business Processes in SalesIn addition to carrying out routine sales order processing in the SAP Sales & Distribution module, you can also implement more specialized business processes, such as the processing of make to- order items, third-party business transactions, and configurable products.

Topic : Customer Consignment

Consignment goods are goods which are stored at the customer location but which are owned by your company. The customer is not obliged to pay for these goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods which are not required. Consignment processing offers the participating partners several advantages. Customers store the consignment goods at their own warehouses. The customer can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for the actual quantity taken.

Process Flow

There are four main transactions for processing consignment stock in the R/3 System, all of which support separate management of stock:

Creating a Consignment Fill-Up Creating Consignment Issue Creating a Consignment Pick-Up Displaying Consignment Returns

Exercise : Consignment Fill-Up

1. You agree to make material CPEN_ _ _ available immediately as consignment goods for your customer. Check the stock.

Navigation

Menu Path Logistics Material Management Inventory Management Environment Stock Stock Overview

Trans Code MMBE

Check the consignment Material Stock Material : CPEN_ _ _ Plant : 1000 Execute Unrestricted Use : ____________ Consignment Stock : ______________

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Consignment fill-up

Consignment fill up is used to supplement the customer’s consignment stock. Goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock). The goods remain in the possession of the vendor. When you ship consignment stock to the customer, you record the transaction by creating a consignment fill-up order. As a result, the system carries out the following actions:

If special stock does not yet exist in your inventory for the customer (or special stock partner), the system creates it when goods issue is posted

The relevant quantity is removed from regular inventory in your plant and is added to the special stock for the customer. The total valuated stock for the plant remains the same.

The transaction is not relevant for pricing since the consignment stock remains the property of your company.

Consignment Fill-up Process Flow

Consignment fill-up order : The company owned stock at customer site has to be replenished. An order can be triggered by a customer's call or report or even without any customer initiative.

Outbound delivery : A delivery is created in order to transfer the goods to the consignment stock. Within the delivery, the physical quantity is picked.

GI consignment : After the goods have been picked, the delivery is posted for goods issue.

Stock Overview : The goods are now in the customer's consignment stock. The stock overview will reflect the transfer of products.

2. Send 100 units of the material to the customer’s consignment warehouse by entering a consignment fill-up.

Navigation

Menu Path Logistics Sales and Distribution Sales Order Create

Trans Code VA01

Order Type : CF (Consignment Fill-up) Sales Organization : 1000 Distribution Channel : 10 (Final Customer Sales) Division : 00 (Cross-Division) Enter Sold-to-party : 301 15 Purchase Order : (Type Any number)

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Purchase date : Today’s Date Req. Delivery Date : Today’s Date Material : CPEN _ _ _ Quantity : 100 units

(Save) Consignment Fill-up 14515 has been saved


Exercise: Create Delivery Note for Sales Order

Purpose of ExerciseThe purpose of this exercise is to create a delivery based on the customer’s order. Creating the delivery brings your order to the point where stock availability is re-determined, and the quantity of ordered items are moved to a scheduled for delivery stock status.

Navigation

Menu PathLogistics Sales and distribution Shipping and Transportation Outbound Delivery Create Single Document With reference to Sales Order

Trans Code VL01N

Enter the following information:

Shipping point : 1000

Selection date : Enter a date 10 days from today

Order : Enter the order number of the sales order

created earlier

(Enter)

Picking Tab:

Verify system selected: Plant/Sloc: = 1000 / 0001 for item 10

Picking Quantity-100

(Save)

Record the system message:

Message Outbound Delivery ________80017282_______has been save

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Exercise : Pick (Transfer Order) AVOID

Exercise ObjectiveThe purpose of this exercise is to create a transfer order as a basis for goods movement in the warehouse and to print the picking list.Navigation

Menu Path Logistics Sales and distribution Shipping and Transportation Picking Create Transfer Order Single Document

Trans Code LT03


Warehouse Number : 010 Plant : 1000 Foreground/Background : Background Adopt picking quantity : 1

(Enter)

(Save)Record the system message:

Message Transfer Order _______________has been saved

Exercise : Post

Purpose of ExerciseThe purpose of this exercise is to pick and post.

Navigation

Menu Path Logistics Sales and distribution Shipping and Transportation Outbound Delivery Change

Trans Code VL02NEnter the following

Outbound Delivery : _____80017282 ______

Select

SaveRecord the system message:

Message

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Exercise : Check the consignment Material Stock.Navigation


Trans Code MMBE

Check the consignment Material Stock Material : CPEN_ _ _ Plant : 1000 Execute Unrestricted Use : _______900_____ Consignment Stock : ___________100___

BELOW SCREEN VIEW HAS BEEN PUT BY ME

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Exercise :Try to create billing document from the delivery document. Is this possible?

Navigation

Menu Path Logistics Sales and Distribution Billing –> Billing Document Create

Trans Code VF01 Enter document number of the delivery: ____________ EnterCheck Log: No Billing Documents were generated.

Reason: Billing has not been defined for a consignment fill-up in Customizing. There are no default values for sales document type CF for Order-and delivery –related billing documents.

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Exercise : Check the document FlowNavigation

Menu Path Logistics Sales and Distribution Sales Order Change

Trans Code VA02

Enter Consignment Fill up Number :

Press (Document Flow)

Put by me

Consignment issue

The customer informs you that they have used 50 units of the material in the consignment warehouse. Enter a consignment issue. Deliver the order and post the goods issue.

Consignment Issue Process Flow:

Consignment issue order : The articles and quantities sold by the customer are entered. Outbound delivery : An outbound delivery is created to reflect the material movement out of

the companies stock. No physical picking is carried out, but the batches sold by the customer must be specified.

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Goods issue : When the goods issue is created, the transfer from the consignment stock is carried out. This means that the articles are no longer in the property of the company.

Invoice : Once the goods issue has been posted, the delivery can be invoiced. Appropriate accounting and controlling documents are generated.

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Navigation


Trans Code VA01 Order Type : CI (Consignment Issue) Sales Organization : 1000 Distribution Channel : 10 (Cross-Division) Division : 00 Enter Sold-to-part : Your customer Purchase Order : 1234 Purchase date : Today’s Date Req. Delivery Date : Today’s Date Material : CPEN _ _ _ Quantity : 50 units

(Save) 14531Record the system message:

Message



Navigation


Trans Code VL01N

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Order : Enter the order number of the sales order

created earlier

(Enter)

Picking Tab:

Verify system selected : Plant/Sloc: = 1000 / 0001 for item 10

(Save) 80017293


Outbound Delivery _______________has been save

Exercise : Post


Navigation



Enter Outbound Delivery Number :

Select

Save


Exercise : Check the consignment Material Stock.

Navigation


Trans Code MMBE

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Check the consignment Material Stock Material : CPEN_ _ _ Plant : 1000 Execute Unrestricted Use : ____________ Consignment Stock : ______________

PUT BY ME

Exercise : Bill the consignment Issue. Is this possible?Navigation


Trans Code VF01

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Enter document number of the delivery: ________90039064____ Enter and Save


Billing is possible. Reason: Billing document type F2 has been proposed for delivery-related billing

in sales document type CI.

3. Check the document Flow

Navigation


Trans Code VA02 Enter Consignment Issue Number

Press (Document Flow) PUT BY ME

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Consignment Pick-Up

Any consignment goods stored at the customer’s warehouse that haven’t been used can be reposted to your company’s warehouse with a consignment pick-up.

If the customer returns consignment stock to you, you record the transaction in the system by creating a consignment pick-up order. As a result, the system carries out the following actions:

When goods issue is posted, the relevant quantity is deducted from the customer’s special stock and is added back into your regular stock at the plant where the goods are returned. Your total valuated stock remains the same since the returned stock was regarded as part of your own inventory even while it was at the customer’s premises.

This transaction is not relevant for billing.

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4. The Customer informs you that they don’t need the remaining consignment goods. Enter a consignment pick-up .Deliver the order and post the goods receipt.

Consignment Pick-up Process Flow:

Consignment pick-up order : The consignment pick-up triggers the return of goods from the customer's custody.

Returns delivery for the order : For the shipment of the company's goods from the customer consignment stock back to the warehouse, a delivery of the type LR (returns delivery) is created.

Goods movement (GR consignment return)

Navigation


Trans Code VA01

Order Type : CP Consignment Pick-up Sales Organization : 1000 Distribution Channel : 10 Division : 00 (Cross Division) Enter Sold-to-party : Your customer Purchase Order : 1234 Purchase date : Today’s Date Req. Delivery Date : Today’s Date Material : CPEN _ _ _ Quantity : 50 Remaining units

Save

Record the system message: 60000115

Message



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Navigation


Trans Code VL01N




Order : Enter the order number of the sales order created earlier

(Enter)

Picking Tab:


(Save)

84000058Record the system message:

Message Outbound Delivery _______________has been save

Exercise : Post


Navigation



Delivery : ___________

Select

Save


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Exercise :Check the consignment Material Stock.

Navigation


Trans Code MMBE Check the consignment Material Stock Material : CPEN_ _ _ Plant : 1000 Execute Unrestricted Use : ____________ Consignment Stock : ______________

PUT BY ME

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Exercise : Try to create billing document from the delivery document. Is this possible?

Navigation


Trans Code VF01

Enter document number of the delivery: ____________ Enter

Check Log : No Billing Documents were generated.

Reason: Billing has not been defined for a consignment pick-up in Customizing. There are no default values for sales document type CP for Order-and delivery –related billing documents.

Exercise : Check the document Flow

Navigation


Trans Code

Enter Consignment Issue Number


Consignment return

Consignment returns are used for when your customer wants to return goods to the consignment stock.

If the customer wishes to claim on consignment goods which have already been issued, you can record this transaction by creating a consignment return order. As a result, the system carries out the following actions:

When goods issue is posted, the relevant quantity is added to the customer’s special stock at the plant where the goods are returned

Since the ownership of the goods is passed from the customer back to your company, the transaction is relevant for billing. In this case, the customer receives a credit memo for the returned goods.

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Depending on the settings in Customizing for Sales, you can create consignment returns with direct reference to a consignment issue. The consignment issue appears in the document flow for the consignment return. This function is not supported in the standard version of the SAP R/3 System.

When you create consignment returns in the standard version of the SAP R/3 System, the system automatically sets a billing block. To credit a return, you must first approve the request for a credit memo by removing the billing block in the return header. You can control the automatic setting of a billing block in Customizing for Sales.

Consignment Return Process Flow:

Consignment return order : The consignment return triggers the return of goods from the consumer to consignment customer.

Returns delivery for the order: For the shipment of the company's goods from the consumer to consignment stock, a delivery of the type LR (returns delivery) is created.

Goods movement (GR consignment return): Stock Overview : The goods are now again in the customer's consignment stock. Credit memo : Once the goods receipts has been posted, the delivery can be invoiced.

Appropriate accounting and controlling documents are generated.

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Exercise :Create a sales order using sales order type CONR.

Navigation


Trans Code VA01 Order Type : CONR (Consignment Returns) Sales Organization : 1000 Distribution Channel : 10 Division : 00 Enter Sold-to-party : Your customer Purchase Order : Purchase date : Today’s Date Req. Delivery Date : Today’s Date Order Reason : Returns Material : CPEN _ _ _ Target Quantity : 50

Save PUT ORDER REASON


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Message



Navigation


Trans Code VL01N




Order : Enter the order number of the sales

order created earlier

(Enter)

Picking Tab:


(Save)


Outbound Delivery _______________has been save

Exercise : Post


Navigation


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Trans Code VL02N

Enter the following Outbound Delivery : _____________

Select

Save


Exercise : Check the consignment Material Stock.

Navigation


Trans Code MMBE Check the consignment Material Stock Material : CPEN_ _ _ Plant : 1000 Execute Unrestricted Use : ____________ Consignment Stock : ______________

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Exercise :Create Returns Credit Memo document from the delivery document. Is it possible?

Navigation


Trans Code VF01

Enter Consignment returns number: ____________ Enter

Check Log : No Billing Documents were created.

Reason : The document is blocked for billing. Exit

Exercise :Release the Billing Block

Navigation


Trans Code VA02

Enter your Consignment Returns number Press Enter

In Sales Tab you will find the billing block. Release the billing Block. Click on the drop down list and select “Blank” (Last Option).

Save


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Message

Exercise : Create Returns Credit Memo document from the delivery document. Is it possible?

Navigation


Trans Code VF01

Enter Consignment returns number: ____________ Enter

Save


Exercise :Check the document Flow

Navigation


Trans Code VA02

Enter Consignment Returns Number


Key Points

The physical shipment of goods to the customer and the sales process are completely separated. The shipment of goods to the customer site represents a stock transfer from free stock to customer

consignment stock. The products at the customer site are reflected in the company's stock overview. The scenario is designed for trading goods as well as for finished goods (from the company's own

production).

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