Consignment Process and drop ship?

Gurus,
I have a scenarios here where i need your support to give some feedback and suggestion to me on how this can be handle using standard SAP process..
Biz have 2 vendors, let's call V1 and V2. Biz have one product initially was build in house but later decided to get it build by vendor V2. Biz plan to use subcon process to deal with V2 vendor where we have provide some materials to V2 to build the part that we need. Biz will then perform GR vs. Purchase Order on the assembly and parts in V2 location will be consume accordingly. This is standard Subcon process.
But this getting complex when there are few components not ship directly from here to V2, instead we order from another vendor V1 and get V1 to ship directly to V2 vendor. In this case, my biz raise order to V1 to drop the physical part to V2, but V1 later will bill to me. How do i handle this process? Do i need to put this part into my subcon order BOM?
Pls help..

Hi
You have to include all the components (parts sent from the plant to V2 and the parts procured from V1) in the subcontract BOM.
1. Create the subcontracting PO to V2
2. Issue the components available from plant to V2. (Components to be procured from V1 will be short)
3. Create a standard PO for procuring parts from V1. Set the delivery address in the PO as V2.
4. Once V1 dropships the parts to V2 location and sends a confirmation, receive the parts against the PO to V1.
5. Issue the components procured from V1 to V2 against the subcon PO.
6. When you receive the finished product, the components will be consumed.
7. Make payments to V1 and V2 against their respective PO's.
Thanks
Swagat

Similar Messages

Consignment process and Condition types in Export Pricing Procedure

Hi,
Can any body tell me the
1. consignement process i.e which document are used at which level
2. when we are going for exports sales then which condition types are used and on which calulation is based on.
thanks
harmeet singh

Hi there,
Consignment is a business process where the goods are stored at the customer / consignee location but are billed only when they are actually consumed.
It has 4 processes:
Consignment Fillup: order type KB, item catg KBN, Schedule line catg E0 or E1. This is when the stocks are moved from the plant stock to the consignee location.
Consignment Issue: Order type KE, item catg KEN, Schedule line catg C0 or C1. This is when the customer actually uses the goods for cunsumption.
Consignment Return: order type KR, item catg KRN, Schedule line catg D0. This is when the customer puts back the goods into the consignment stock (returns to condignee location)
Consignmnet pickup: order type KA, item catg KAN, schedule line catg F0, F1. This is when the stocks are put back into the plant stock from the consinment special stock. That is from the consignee location to the plant.
For all the above order types it has standard delivery LF & returns delivery LR delivery types.
Stocks at the consignee location are maintained as consignment special stock. Controlled by indicator W in item catg KEN.
Regards,
Sivanand

Consignment process and CIN (CENVAT)

Hi ,
I am clear abt the CENVAT process for normal inventory but not sure how should we proceed in case of CONSIGNMENT inventory.
Can anyone pls let me know the process of taking CENVAT in case of Consignment inventory ?
Regards
Shrey

Hi,
Check on it:-
Freight, Excise in Consignment Process
cenvat account
pherasath

I ordered a 16GB silver iphone 6 on 10/12 and it still hasn't showed up in my order status/order history. Does this mean that the order hasn't been processed yet? If so, when can I expect it to be processed and then shipped out?

I know its only been a couple of days since I ordered it and I shouldn't be concerned that the order hasn't processed yet, but I would like to know when it will be processed. I have an iPhone 4 and its in terrible shape, I'm anxious for the arrival of my iPhone 6.

Thanks for clarifying mattminsch. Other users may have placed the order before you and shipping depends on many factors, down to the time the pre-order was placed. There is no way to forecast if your pre-order will ship sooner than estimated, but if it does you will be able to tract it using the order status page you've been using.
AdaS_VZW
Follow us on Twitter at @VZWSupport

Cost Carrying Over in Drop Ship Processing

Hello Experts...
When doing a drop ship sales order, this is the following situation. Item A has cost at Warehouse 01 (stock warehouse) of $400 and cost at Warehouse 03 (drop ship warehouse) of $425.
When doing a drop ship sales order, the correct cost of $400 from WH 1 is displayed initially until the WH is changed to WH 3, then it displays WH3 cost of $425. However, when the Purchase Order Confirmation Screen is displayed, the cost reverts back to $400. We have done a test 15 times in the Demo SAP B1 and even more information is not passed on using the "Copy To" function (for example, the Delivery does not pick up any costs - it is blank when processing a drop ship).
Of course it could be changed at the Purchase Order Confirmation Screen, BUT a real simple statement comes up of why does a Sales Person have to change it when the cost is in the system and is displaying correctly on the Sales Order. From a common sense perspective of financial matters and productivity, it takes the statement even further - why even put a cost on the Drop Ship Warehouse when the system does not pick it up. It gets even worse when the Gross Profit comes out to being 100%. The whole drop ship process seems to be a mystery in the SAP Documentation.
QUESTION: Is there some setting that needs to be changed so that the correct drop ship cost is carried throughout the system automatically and all of this wasted time is cut out?
The user guide published on Februrary 2009 covering this topic does not say anything about COMPLETE drop ship processing and cuts off at the display of the Purchase Order Confirmation Screen on page 6.
Thanks - Zal

Hello Julie - thanks for your reply...version is 2007 SP01 PL05...
Maybe the problem with the cost being carried over with "Copy To" was corrected in PL07? Will go to the release notes...
This is getting to be a comedy - again, I am using and testing this function on SAP's provided "vanilla" Demo database with no changes, so if SAP cannot set up drop ship functioning properly on their own Demo, who can???
OK - yes, the cost of the product is pulled from the associated vendor which is problem number one - for companies that sell both inventoried and drop ship items on a regular basis, the cost of that product is never the same. For vendors, onsies and twosies being shipped to our customers incurs a higher expense than a shipment to one site of 100 or 200 items and they will quote a different cost to cover those expenses. It just makes common sense that the vendor's incurred expenses to fill the drop ship versus shipment to our waregouse is going to be different, doesn't it? Therefore the actual cost and dollars paid for the product will be different from WH01 over WH03 (or any other area - Base Price versus Discount Purchase Price), and the gross profit is going to be different between the two versions of a sales process. Creating a thousand different price lists certainly is not the answer!
And this begs a very simple question then - why even put in an item cost on the Item Inventory Tab for the drop ship warehouse AND why does the system pull the WH 03 dollar amount into the Sales Quotation/Order Gross Profit Base Price field but not transfer it to the Purchase Order? Why create a constant flood of erroneous Gross Profit information on drop ship AR invoices unless you are happy to have wasted productivity?
I think the real problem is that this is obviously a very bad design for an SAP B1 function and folks are doing all of these workarounds and extra steps (at least in PL05 so far) to get their work done. I think it is hilarious that when trying to enter a ticket directly to SAP on this, I got the reply that "that is the way the system is designed" (albeit bad design and no effort to direct me to documentation) and had to post my question here according to new SAP B1 support standards.
I am going to close this question as there really is not an answer except "way the system is designed" and this thread is leading nowhere.
Many thanks to everyone who took the time to reply - lol - of course, thanks with points!!!
Take care all - Zal

Drop Ship SO, Change Management Issue in 11.5.9

Hi,
Currently Client is using Oracle Apps Release 11.5.9
Requirement :
While updating Drop Ship Sales Order, corresponding requisition and Drop Ship Purchase order needs to be updated automatically
Problem:
This functionality is available in 11.5.10 which automatically updates requisition and PO but not in 11.5.9
I couldn't find the package API which they had used in 11.5.10 for implementing this solution.
Hence Please help me in providing the package(API) which is used in 11.5.10 for auto update of requisition and drop ship PO when drop ship SO is changed. So that i can try to implement the same logic in 11.5.9 for client.
Thanks,
Selvan

marist89 wrote:
In anticipation of an impending maelstrom of regulatory changes, I want to upgrade my 11.5.9 EBS environment to 11.5.10 and at least have a hope of being supported. Upgrading to R12 is just not an option at this point, my users are overwhelmed by it. I know that's the best way to go, but it's not going to happen.
I have an 11.5.9 environment on Solaris running on two tiers. The middle-tier serves Web & Forms. The DB Tier serves DB (10.2), CCM, and Reports.
At the same time I upgrade, I want to move my EBS to Linux. I also want to change my configuration so that I am running Web/Forms/CCM/Reports all on the same tier and isolate the DB to it's own node.
My general thought process was:
1. Move the db from Solaris (10.2) to Linux (11.2) using a combination of (362205.1) and (557738.1).
2. Install 11.5.10 on a new node (Linux) and just run the appropriate driver for the 11.5.10 patch against the db on Linux.
Does this seem like a reasonable approach?No, as it is not supported -- You may log a SR to confirm with Oracle Support.
You need to upgrade 11.5.9 to 11.5.10 (or 11.5.10.2) then migrate the database using export/import and the application tier node. Or, migrate the database then upgrade to 11.5.10/11.5.10.2 then migrate the application tier node.
Oracle Applications Release 11.5.10.2 Maintenance Pack Installation Instructions [ID 316365.1]
Upgrade Path Recommendations for E-Business Suite 11i [ID 364623.1]
Release 11.5.10 Maintenance Pack Installation Instructions [ID 259484.1]
Migrating to Linux with Oracle Applications Release 11i [ID 238276.1]
Debugging Platform Migration Issues in Oracle Applications 11i [ID 567703.1]
Oracle Applications Release Notes, Release 11i (11.5.10.2) [ID 316803.1]
Recommendations To Install Oracle Applications 11i [ID 294932.1]
Thanks,
Hussein

Drop Ship the item if stock is not available

Hi,
We have a requirement where,
A item is about to get expire (No more demand) but organization is having some stock of the item. So Purchase team has stopped procuring the item.
Now, when we receive any order for the specific item, client wants to look at the present stock and ship it if its available. If not, create drop shipment.
Does anyone aware of this functionality where a single item will behave as a stocked item if the stock is available and drop ship item, if stock is not available.
Any help will highly appreciated.

A given item CAN be procured internally or externally.
But that attribute is set when the sales order line is booked.
So you need some kind of a personalization that will look at the available qty of the item being ordered and then set the Source type to External if enough qty is not available.
Hope this helps
Sandeep Gandhi

Drag and Drop Characteristic to Rows in QD

I am trying to drag and drop ship-to characteristic from infoprovider pane to the rows pane in query designer but the system is restricting me from doing that, but I can move other characterisitcs from other dimensions and drop them in the rows area. Only ship-to is the problem. Have I accidentally pressed some key or what? The "ship-to party" was provided as filter in the characteristics restriction section as a variable with manual input, so I removed it as a filter thinking that might be causing some problems but still no success. Any help would be appreciated.

LMAO..You are so right, I knew it would be something simple, but it usually takes an hour or two for my brain to warm up before I can start thinking and functioning.
Thanks, bro..points awarded!

IS-Retail:diff bet retail consignment process & rackjobber module

hi experts,
Can anyone tell me what's the difference between retail consignment process and rackjobbers module in SAP IS-Retail.Explain me the processes and there complete settings step by step in detailed.Thanks in advance.
Regards
Gopal

Hi Gopal,
Consignment Goods,
A consignment occurs when vendor provide article to a retailer (the u201Cconsigneeu201D), who agrees to pay vendor proceeds from the sales minus a commission. If vendor product doesnu2019t sell, the retailer(consignee) can return it.The Consignment processing in retail allows you to transfer the goods from your DC to any location and you have the flexibility to the convert the Stock type from consignment stock to any other stock its depends on the receipient.
Rack Jobber
Vendor provide the merchandise and rack directly in the retail location, and vendor work co-operatively with the retailer to share the profits.Thus relieving the retailer to acquire the merchandise and allow to gain from the sales of merchaside.Hope you understand.
Regards
Abdul

Drop Ship and Consignment Warehouses.

Hi Everyone;
What is the main difference between a Drop Ship and a Consignment Warehouse. As per my understanding example for Drop Ship warehouse would be ebay, as if some company wants to sell it s products it will use ebay as a drop ship warehouse.
Consignment warehouse only has a accounting effect when the products is sold. so example of consignment warehouse will be like Honda selling it s cars through it s dealers..so if a dealer in new york sold one Honda car only then it will have an accounting and warehouse effect in it s headquarters in Detroit and Ny.
Please correct me if i am wrong as i always get confused in this. I am preparing for my B1 certification.
Thanks and Regards
Nitin

Your understanding is correct.
In addition to that, following is as per SAP Help Document
Drop Ship
Select to define the warehouse as a drop ship warehouse. Use when the company does not manage inventory, but receives commission for every order.
Drop ship warehouses cannot be used for serial or batch items.
Inventory Transfers as Customer Consignments
If you deliver items to your customer in the form of a consignment, you can use this function to enter the inventory transfer from your warehouse to the consignment stores in the system.
When items are withdrawn from the consignment stores at the customeru2019s site, you create an outgoing invoice for the appropriate quantity and specify that the items be delivered from the consignment stores.
You have to create a storage location for the consignment to enable the consignment inventory to be managed separately from the rest of your item inventory.
If you maintain consignment inventory for several customers, we advise creating a consignment store for each customer so that the inventory for each customer can be monitored more easily.
You can then display the consignment inventory using the warehouse reports.

Intrastat report in drop-ship process

Hi,
I have drop-ship scenario where plant country belongs to France ( FR) but actual shipment happens from Taiwan(TW).
Butin the sale order we use plant as France(FR) and shipping point as Taiwan(TW).Since these are drop ships dispatched from non EU countries i.e in my case Taiwan(TW), the intrastat report ignores it. i.e on the invoice document in the "Trade/Custom" tab both "Country of origin" and "Dispatch country" will show as France and the same is picked in Intrastat reporting.
But this is wrong since actual shipment has been done from Taiwan country . Therefore how can we change this to Taiwan i.e correct country. One way is change in the user exit of billing.
but is there any other way, i mean process wise ?. If we do third order sales process would this resolve problem. if so how can this be achieved.
What i have noticed is even in third party sales process it has the same problem.
Thankyou in advance

Thankyou for your reply.
even if i use Foreign Trade concept , but my plant in sales order is "France" and shipping point as "Taiwan", then the problem is instrastat will ignore Taiwan as a departure country , it shows only France as departure country , but it should be Taiwan. Therefore how can we resove this problem.
I dont want to change dispatch country as "Taiwan" using user-exit in invoice-> "customs/Trade" tab , because if i change this field then instrastat report will pick-up . But withoug user-exit how can we change via config or process wise.
Thanks in advance

2 - PO process for intracompany drop ship to 3PL.

Our company has a business process where a purchase order is released to a vendor for a long lead time item. The vendor is to deliver the product to a 3PL that is set up as a plant in our system. There are several requirements having heavy influence on this business process:
u2022     We need to take ownership of the product while it is in transit to the 3PL.
u2022     We need to pay the vendor prior to the product arriving at the 3PL.
u2022     We need to be able to show the inventory as being in-transit to the 3PL.
We currently meet these requirements in the following way:
u2022     A PO (#1) is created from a u201Cvirtualu201D plant to the vendor.
u2022     Another Stock Transfer Order (#2) is created from the virtual plant to the 3PL that is to receive the product.
u2022     When the vendor notifies the virtual plant the product has shipped to the 3PL, a virtual goods receipt is done in the virtual plant against PO #1.   This allows an invoice to be entered and the vendor paid.
u2022     A virtual delivery is created against the STO #2 and post goods issued, putting it in transit to the 3PL. An EDI signal is sent to the 3PL as a shipment advice that the product is coming in.
u2022     When the 3PL receives the product from the vendor they post a goods receipt with reference to the STO #2, closing the loop.
This process is less than optimal because:
u2022     Two PO documents must be maintained and kept in sync during the process.
u2022     Products are long lead time, meaning this process of keeping 2 POu2019s in sync must be done for a long time.
u2022     Significant time is spent creating virtual transactions.
Does anyone know of a way that we can more efficiently meet the requirements outlined above WITHOUT having a 2-PO process and virtual transactions? We would love to hear your ideas or recommendations.

Hi Daniel,
   Your scenario is covered under SAP Best Practices V4G: Third-Party Drop Shipment with Vendor Invoices and Returns.
In third-party order processing, your company does not deliver the items requested by a customer. Instead, you pass the order along to a third-party vendor who then ships the goods directly to the customer and bills you. The standard sales order automatically creates a purchase requisition for the materials to be delivered by the third-party vendor.
In this scenario, the vendor sends a shipping notification. The incoming invoice from the vendor updates the billing quantity, so that the customer-billing document is only possible after entering the invoice from the vendor.
If the customer does not accept the delivered goods from the third party vendor, the customer disposes of the goods. A credit memo is issued to the customer reversing the revenue and cost of goods sold. Then a MM credit memo is created for the third party vendor. A statistical goods receipt reversal is performed for the goods in order to close out the original purchase order. The vendor credit memo may initially be blocked for payment, if previous agreement for this with vendor exists.
For Further details please refer to the below link
http://help.sap.com/bp_mediav1600/Media_US/HTML/contentlibrary.htm
With Regards
Srinivas

G/L A/C Determination for Drop Ship and Regular Ship of Same Item

Hello Friends,
We have a scenario,
Stock is Sales order valuated stock
For the same material, some times we do a drop shipment from vendor and some times we do a regular shipment from our plant.
Being sales order valuated stock the GL account (On the PR generated from sales order) for drop shipment is getting picked up from BSX. (standard SAP)
Our Finance team dont want the G/L account from BSX to be picked up.
Because the BSX G/L account is a finish good G/L account and we dont want to use that for drop ship.
How do we solve this issue?
What is the standard process to get the G/L account if the same material is drop shipped and regular shipped?
Thanks for your help.
Thil

Hi,
The most common way to solve your problem is to use split valuation.
This can be easily done. I you want to know how to use split valuation let me know I will detail steps you need to follow.
Regards
Srinivas

3rd Party Drop Ship Process

Hello Friends
I was told to create a third party drop ship process and its going to be only one product for now , please help me to show steps to create this.
Thank's

Hi Balaji
I create the 3rd party process steps , and i also saw the configuration in the system already done in the past , so i created the sales order but i want item category to be automatically on the sales order , but i am not sure about this. so i tried changing manually and this was the error ...item category ZTAS is not defined for this item.please advise how to fix this
Regards

Drop Ship workflow Process Name

Hello,
Does anyone know the seeded Process Name that could be used for drop ship orders. According to the documentation I've read about drop ship, they explained to use the Generic Order Flow which I did. The problem is with the line level process name. I've tried Line Flow Generic and several other process names but my orders get stuck at the booking level. Other types work just fine. I've also changed the source type to external but nothing works!
I'm using Vision 11.5.7
My setup is as follows:
Item = transactable, stockable, customer ordered, customer orders enabled, shippable, oe transactable
transaction type: Drop ship, order category= order, order workflow = order flow- generic, Assign line flows-->Process name= Line flow- generic
Line type --> source type= external
Set up defaulting rules as well
Orders get stuck at booking! Should be awaiting receipt
Your help will be appreciated
Cheers
Riad

Hi Sandeep,
Are you sure whether the Workflow Background Process has picked the order line and workflow activity is not errored out? Please check the workflow, has it completed Purchase Release activity or is it still in the Purchase Release - Deferred state?
If the workflow is in the Purchase Release - Deferred state, then the line will be in the Booked status. So, run the WBP program (item key - OM Order Line, Process Stuck - Y, Process Timeout - N) & see the line workflow activity & the line status should be progressed to Awaiting Reciept.
Also, make sure you have provided the List Price (greater than zero) & Default Buyer in the Purchasing tab at the Item master level for the dropship item. If these information are not provided then the Requisition will not be created.
Regards,
Hemanth

Consignment Process and drop ship?

Similar Messages

Maybe you are looking for