Intercompany Trading - Consignment Model

Hi,
Scenario, - Two Company codes operating under one holding company within the FMCG Sales and Marketing.
Company A manages all sales, distribution promotions & invoicing, while Company B (the Brand owner) manages production & marketing.
The trading agreement between these 2 companies is a consignment model, i.e. transferred from Company B to Company A @ Zero price, once sold Company A returns 100% of revenue to Company B and recieves a % commission in return for their services.
Two scenarios
1 - STO replen PO -> Outb GI (Comapny B) -> Inb GRN (Comapny A) -> IV (Company B @Zero Price)
2 - Cust. Sales Order -> Outb GI (Company B) -> Cust Invoice (Company A) -> IV (Company B @Zero Price)
Issues
A. How can Company B accrue the revenue from Company A's sale into their accounts?
     - COS are posted at point of goods issue and transferred to COPA through intercompany invoice
     - Revenue & Commission currently journalled as AR-COPA journal at month end
B. How can Company B accrue Retro promotional spend from Company A's sale into their account?
     - All promotional spend (retrospective Rebates) are settled to customer by Company A but recharged to Company B
     - Company B currently accrue this at month end
Thanks

Similar Messages

Intercompany STO Consignment Return

Hi gurus,
I am giving support to a company with Intercompany consigment process. The process works but I am meeting a problem with the return process . If a click on the flag return item, the shipping tab of the position dissppears so I cannot create the delivery. Please if anyone knows let me know!!
Some details:
Order type NB,
Stock type K
I have customized the:
delivery determination
returns from plant to plant
All master data is correct cause the process is working (only the return are not working)
Thanks in advance!
Mikel

I have never heart of an Intercompany STO Consignment process.
However, you usually create a consignment fillup to get the material to your customer (still owned by you)
when the customer uses this material, you create a consignment issue.
if any unused material shall be returned, then this is not a return, it is called consignment pickup, this process starts as well in SD.
A consignment return would only ocur after a goods issue was done, a return will then return the material into consignment stock at customer location.
About which return are you talking? the pickup or the real return?

Intercompany + Customer Consignment Sales Scenario (triple loop)

Re: Customer consignment with intercompany process
Posted: Nov 24, 2010 12:23 AM in response to: Pamela79 Edit Reply
Hello Intercompany Gurús
I would like to know in case posible, the drawbacks of the folloing situation:
We have 2 plants, 1 selling plant (Plant1)in company code and 1 shipping plant (Plant2) in anothr company code working inside interconmpay + consignment process, plant 2 ships directly to cutomer consignment of plant 1´s customer (no phisical recepction in plant 1)
Customer place a Consignment fill up order in plant 1
Plant 1 place a PO for qtys needd to plant 2 as the consignment fill up order is intrcompany as well so PO is generated
Plant 2 generates a New Consignment Fill Up order with sold to as plant 1 and ship to customer consignment door
Plant 2 makes PGI and place stock in cutomer consignment line (ship to) and plant1 (sold to)
Plant 2 generates an intercompany invoice to plant 1
Customer will invoice to plant 1 base on consumption
So no reception is needed in plant 1
Is it posible this scenario?
Thanks and regards

Hi Jacopo,
Are you using the IC? We implemented the agent inbox to go look at past ERP sales orders. Can be configured to get this data.
Of course there are many ways to skin a cat, so you could use activity categories or something similiar. So that every activity linked to the ERP sales order has the same category you can easily see this in the customer history.
Another idea maybe extending the worklist used in salespro. Haven't used this so unsure.
Cheers
Andrew

InterCompany Customer Consignment stock with Valuated

Hi
Any one help me in understanding the Customer Consignment Process.
First a normal consignment Process with Valuated Stock
Second thing We need to move the Goods from one Company to another Company directly to Customer Consignment Valuated Stock. Please Give the full Process Step with the detailed Transaction . A has the SO .The stocks are Available in B Company .We need to Move the Stock from one company to direct consignment.
Any help will be highly appreciated .
Thanks
Jeevan

Hi Nick,
1. Go through Consignment Stock Processing
Purpose
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.
Since consignment stocks still form part of your valuated stock, you must manage this stock in your system.
However, consignment stock must be
Managed separately from the rest of your stock so that you know exactly what stock is stored at the customer location
Managed separately for each customer
In inventory management, the consignment stock is managed as special stock in your inventory and is assigned to specific customers. This enables you to keep track of returnable packaging stock by customer.
If the consignment stocks are not managed by the sold-to party but by a central office, you can use the partner function for special stock partner.
Prerequisites
Special Stock Partner
The special stock partner has been defined for carrying out consignment stock processing by means of a third party rather than the customer. This means you can manage all special stock under one partner. It makes sense to use the special stock partner if your customer is using decentralized order processing but manages consignment stock centrally.
Inventory Management Using the Special Stock Partner
If you want to process your consignment goods using a special stock partner, proceed as follows:
Create a customer master record for the special stock partner (account groups 0001 and DEBI are defined for this purpose in the standard system).
Enter the special stock partner in the relevant customer master record on the partner screen using the partner function SB.
When you create an order for this customer, the system automatically proposes the partner function SB in the document header and the document items. Consignment goods which have been entered in a consignment fill-up are always posted to the stock of the special stock partner when goods issue is carried out. You can also enter the partner function SB manually in the document header or in the relevant items if a special stock partner is required and is not proposed from the customer master record. If a special stock partner does not exist in the document header, inventory management is carried out using the sold-to party.
Process Flow
There are four main transactions for processing consignment stock in the R/3 System, all of which support separate management of stock:
Consignment fill-up
Consignment fill up is used to supplement the customers 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 (order type KB). 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 pick-up
Consignment issue enables the customer to take consignment goods from the special stock for their use or to sell.
Consignment issue involves removing the goods from the special stock and making it the property of the customer.
When the customer removes consignment stock to use or sell, you record the transaction in the system by creating a consignment issue order (order type KE). As a result, the system carries out the following actions:
When goods issue is posted, the relevant quantity is deducted from both the customers special stock and your own total valuated stock.
The transaction is relevant for pricing since the goods now become the property of the customer.
Consignment issue
Any consignment goods stored at the customers warehouse that havent been used can be reposted to your companys 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 (order type KA). As a result, the system carries out the following actions:
When goods issue is posted, the relevant quantity is deducted from the customers 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 customers premises.
This transaction is not relevant for billing.
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 (order type KR). As a result, the system carries out the following actions:
When goods issue is posted, the relevant quantity is added to the customers 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.
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.
The following order types used in the standard system for processing consignments:
Transaction
Sales order type
Consignment fill-up
KB
Consignment issue
KE
Consignment pick-up
KA
Consignment return
KR
Pricing and Availability Check
Whether pricing is carried out for the individual transactions depends on the item category. The schedule line category controls the availability check and the transfer of requirements in each of the transactions. The schedule line category itself is determined by the item category and the MRP type of the material. The order types KE and KA check against the consignment stock for the customer involved and order type KB checks against your own plant stock. Requirement records for consignment stock are stored as individual requirements, independently of the setting in the material master record.
2. You can sell the products to the same customer through other sales areas with configuration of common divisions and distribution channels.
3. Go through the IMG settings Sales and distribution --> billing ---> Inter company billing
I hope It will give you some Idea,
Regards,
Murali.

B2B : Hub trading partner model

Dear All,
We are facing an issue while using the hub model.
Use case :
1# We need to send an EDI 850 document from TP1 and TP2 to TP3.
Source : TP1 , TP2
Target : TP3
We configured the agreements between following.
TP1 --> host TP --> TP3
TP2 --> host TP --> TP3
The files are getting generated successfully.
But we could not have the Source TP name in the ISA segment from TP value. We see the HiostTrading partner name.
What configuration change we need to do , So that TP1 / TP2 name will be shown in generated ISA segment fromTP element.
Thanks in advance.
Siddhardha.

Hi Naresh,
As of now only directory name (leaf folder) or filename can be used for TP identification in case of File/FTP (except EDI). If your use case does not allow any of these, then please file an enhancement request with support.
Regards,
Anuj

Intercompany Consignment STO

Dear Experts,
We have an Intercompany STO process.
Purchase order type NB
Delivery type NLCC
Invoicing IV afrer PGI
The PGI makes Mvt 645 at supplying plant and Mvt 101 at receving plant
For Consignment inventory we need that the 645 will be Stock Type "K"
Does this supported by SAP , and how can we Implement it in IMG?
Thanks,
Moshe

Please check this answered link:
Re: Intercompany STO Consignment Return
Intercompany Stock transfer with Consignment
Re: Intercompany Consignment Stock Transfer
Edited by: Afshad Irani on Jun 17, 2010 5:55 PM

Intercompany Stock Transfer starting from Plant Maintenance

Dear SAP Experts,
We are planning to implement Intercompany Stock Transfer Process starting from Plant Maintenance side.
We would like to be able to order for maintenance work order material which belongs to different plant.
After adding such material to work order system should automatically create purchase requisition with Item Category U – Stock Transfer.
Such purchase requisition will be then converted to P.O. Then standard MM process will follow meaning on supplying plant side Delivery & Goods Issue will take place. And on receiving plant side Goods Receipt against P.O.
Can you please let me know whether there is standard process which covers what was described above especially part on Plant Maintenance side?
If there is no standard process can you please advise (propose some best practices) how we can realized such request?
Many thanks in advance.
Grzegorz

Grzegorz
From memory, with intercompany trading you need to create a PO/PR on Company A and a corresponding Sales Order on Company B.
This can be automated via MM
I would suggest you ask the question in the MM Forum..
PeteA

Trading partner issue

Hi Guru's
when i have tried to clear GL account 556699 (inter company account) is was giving an error saying that consolidated companies are different,
I have checked with OSS note and activate intercompany trading field for documents type in test system and it worked
my query is why it is giving this error now as we used to do beofre without any error.
there are no changes on master data for this cahgnes.
any help from expetrs?
thanks
Sunitha

Hello,
Is the doc type master data not changed by somebody?You can verify through change logs.

Intercompany Currencies

I have the following setup done in Intercompany Solution:
Branch 01
Localization = USA
Local Currency = USD
System Currency = USD
Branch 02
Localization = USA
Local Currency = USD
System Currency = USD
Branch 03
Localization = UK
Local Currency = GBP
System Currency = GBP
Branch 04
Localization = Germany
Local Currency = Euro
System Currency = Euro
Head Office
Localization = USA
Local Currency = USD
System Currency = USD
Consolidation Co
Localization = USA
Local Currency = USD
System Currency = USD
I have set the consolidation to be done using the System Currency.
Will the above scenario work for:
1. Financial consolidations for financial statements?
2. Intercompany trading scenarios, distribution of costs scenarios, etc.?
J. Rupert

Agneesh Jain,
Thank you for your reply.
I have only been running Intercompany for March and April. I have exported and imported the journal entries for three USD companies into the USD consolidation company for March. I have not exported any JE's from the GBP or Euro databases yet. I planned to do that for April.
Is it possible for me to change the "Consolidation Source" from "System" to "Local" currencies and then export the GBP and Euro databases as well as the USD databases for April?
If I change this setting, this is where the IIS application will use the exchange rates to convert the journal entry amounts correct?
See comments below:
The following comment comes from the SAP B1 User Guide for Version 9.0 (page 119):
Consolidation Source –indicates whether the financial data for consolidation is retrieved from the company in the company’s local currency or in its system currency. Choose an option from the dropdown list. If you choose System Currency, the system assumes that the system currency is same as the consolidation currency (that is – Local Currency Code of the Consolidation Company).
So when you are setting up the consolidation company, you have two options for choosing the Consolidation Source – Local or System currency which operate as follows:
“Local” currency option
Comments:
If you choose Local Currency, the system assumes that the local currency is not the same as the consolidation currency (that is – Local Currency Code of the Consolidation Company).
Since the above comment would be true, then this assumes that since all the currencies would all be the different that there are calculations being done using exchange rates. The calculations are done using the exchange rates as defined under the “Consolidation Translation Method” and using:
Historical Rate
Closing Rate
Average Rate
                These rate are being used in the calculations of the Journal Entry amounts and NOT the      account balance.
3. The calculations using the exchange rates are being done as the Journal Entries are being      exported from the various company databases into B1i server and then imported into the consolidation      company database.
“System” currency option
Comments:
If you choose System Currency, the system assumes that the system currency is same as the consolidation currency (that is        – Local Currency Code of the Consolidation Company).
Since the above comment would be true, then doesn’t this assume that since all the currencies would all be the same that there are no calculations being done using exchange rates. All that is being done here is “adding together” all of the journal entries relating to the same account. (There is actually no calculation being done using the exchange rates.)
J. Rupert

Consignment sale

hii,
we have our own retail outlets, from we sell to the end customers. can anyone suggest whether to go for a consignment model or to create the outlet as a plant, keeping in view with the central excise and taxes implication.
some times there could be transfer of stock from one outlet to other outlet.
This is rather urgent.
Thanks in advance.
Suri.

Hi Suryanarayan,
It is advisable to have your retail outlets has different plants.
But if you have more retail outlets then maintenance would become a big issue which one of my clients had faced.
In that case the best advisable thing would be to have your outlets has storage locations.
Please reward if helpful.
Thanks
Murtuza

Consignment Pick-up order - confirmed inventory qty

Greetings,
We are using the SD customer consignment model, using sales order types, consignment fill up orders ZKB (copy of KB), consignment issue ZKE (copy of KE), consignment return ZKR (copy of KR) and consignment pick-up ZKA (copy of KA). We have a specific requirement to build a consignment pickup order ZKA, deliver and post goods receipt the delivery before we process the ZKR consign returns and so we go negative in the customer consigned inventory. My issue is that SAP will not allow us to confirm the qty on the ZKA sales order so we can deliver it (no schedule lines created to deliver), we need to circumvent this and just confirm and deliver the consign pick-up. This a unique situation where we are replicating transactions from another system and it's done out of order, the inventory would be negative literally a couple of hours.
Thanks!

Agis -
Thank you for your input, I believe this is part of the problem however I believe the core of my problem is in the availability check and schedule line processing. If I have no consigned inventory for a particular customer and material I still need to book a Consignment pickup as I'm replicating transactions from an external system and will catch up and reconcile inventory within the day. I can create my ZKA (KA) order with the ZKN (KN) line item category, I can create a schedule line with the schedule line category of F0 (consPickup w/o AvCh) however when I deliver the pickup a delivery is created with the line item but with no delivery quantity and a log entry of "Only 0 EA of material XXXXX available".. What I need to do is supersede this and create the delivery with qty and post goods return it, letting the consignment inventory go negative, this will be caught up hours later when I post consignment receipts.
Any ideas?

Trading partner in TBB1

Hi guru's,
We have a problem related to intercompany trading partners (VBUND) Our customer needs to know all deals related to an intercompany trading partner on GL level.
When we post our TRM deal with TBB1, the system fills in the trading partner of the broker, the customer on the other hand says that this is of no use, because it should fill iin the trading partner of the issuer.
Can anybody comment or help?
kr,
Stef

Hello
Regarding this issue, could you please have a look at SAP note 603715.
"This exit is only to be used for releases up to and including EA-FINSERV
1.10, since as of EA-FINSERV 2.nn the operative depreciation area is
integrated in the position management. Other exits are available there.
To change field 'VBUND' use BADI 'TPM_ACCIF_TRAC' with method
'ACCIT_VBUND_EXIT'."
Therefore this depends on your release.
For BAdI TPM_ACCIF_TRAC you will find the method ACCIT_VBUND_EXIT.
Here you will get the flow information (IM_DATA). You get some
general information (e.g. security-id and so on), the flowtype
im_data-dis_flowtype and some more information.
The badi will be called for each flow.
You may change the paramters CH_ACCIT_VBUND_D and CH_ACCIT_VBUND_C
(debit&credit) to fulfill your requirment.
Best regards,
Jasmine

Intercompany Stock transfer with Consignment

Experts -
I ran into one scenario for intercompany stock transport order with Consignment
Company A: USA 3000, Plant 3000
Company B: Germany 1000, Plant 1000
Germany 1000 orders parts from USA (3000)
Condition here is "Ownership remains to 3000, unless 1000 move parts to their own stock"
Is this possible with intercompany STO?
I can do processing without Consignment, but with consignment it is giving following error:
"No delivery type defined for supplying plant 3000 and document type NB - Message no. 06694" -
We are running ECC 6.0
Thanks-

Hi,
For PO document type + Supplying Plant combination, you will have to assign the InterCompany delivery type NLCC
SPRO>Materials Management>Purchasing>Purchase Order>Set up Stock Transport Order-->Assign Delivery Type and Checking Rule
But, for companies across countries, like US and Germany, regular SD's consignment sales process may be ideal. I have recently designed one complete scenario for this and working fine...
Consignment Fill-up, Consignment Issue, Consignment Pickup and Consignment Returns process ....This perfectly works with standard SAP solution and very rarely you would require any modifications in this area.
Reward if helpful
Regards

India: Customer consignment with trading goods

Dear all,
we need to implement customer consignment process with trading goods on a depot in India.
But I am lacking understanding how the process works with SAP:
Step 1) consignment fill-up:
We do goods issue, then J1IJ and then a create a proforma invoice. This invoice holding the RG23D entries goes along with the goods to the consignment location. But it is not relevant for payment towards the consignment customer as I have learned.
2) Consignment issue: When we do a consignment issue, how do we get the correct tax amounts into our invoice (BED, CESS, SeCess)? I am told that the excise is only billed to the consignment customer for the actual consumed quantity. This would be with the invoice for the consignment issue. But the pricing procedure does not pick up the partial excise values from RG23D as we do not create any excise invoice for consignment issue, but only SD invoice. So how to get the correct values in the excise conditions?
Can anybody explain to me how this scenario can be handled in SAP without entering condition values manually in the invoice?

Dear tortyv,
As per my understanding of the requirement,
You please check the "VL06" report if it satisfies your requirement you enter the execution parameters and execute.
System will give the list of out bound deliveries. Select one of those and click the details icon (ctrlshiftf3) according to the item view or headder view.
If it does't suit you have to go for z report.
I f you want that please provide the input fields in order to fetch the required data for the report.
Thanks&Regards
Raghu.k

Customer consignment with intercompany process

Hello,
Has anybody worked on Customer consignment with intercompany process. If yes, what are the main points to be taken into or configured for this process ?
regds

Hello Intercompany Gurús
I would like to know in case posible, the drawbacks of the folloing situation:
We have 2 plants, 1 selling plant (Plant1)in company code and 1 shipping plant (Plant2) in anothr company code working inside interconmpay + consignment process, plant 2 ships directly to cutomer consignment of plant 1´s customer (no phisical recepction in plant 1)
Customer place a Consignment fill up order in plant 1
Plant 1 place a PO for qtys needd to plant 2 as the consignment fill up order is intrcompany as well so PO is generated
Plant 2 generates a New Consignment Fill Up order with sold to as plant 1 and ship to customer consignment door
Plant 2 makes PGI and place stock in cutomer consignment line (ship to) and plant1 (sold to)
Plant 2 generates an intercompany invoice to plant 1
Customer will invoice to plant 1 base on consumption
So no reception is needed in plant 1
Is it posible this scenario?
Thanks and regards

Intercompany Trading - Consignment Model

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