Consignment sale and contract difference
What is the basic difference between consignment sale and contract ?
Thank u gurus
Consignment Sales is a sale, in which initial ownership of the stock is with us, the stock being in the premises of the customer. The ownership is transfered on sale of material.
Contract may be quantity contract or Value contract, in which the stock remain in our owm premises, but it ia an agreement to delivery some'x' quantity of material or materials to the tune of decided valuue.
<b>Consignment Stock Processing:</b>
Consignment Stock Processing
Purpose
Consignment goods are goods which are stored at the customer location but which are owned by the 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 that are not required.
Consignment Fill-Up: Consignment fill-up replenishes the stock at the customer site. Since the goods remain the property of the company, this process is not relevant for pricing and consequently not for invoicing either.
Create a sales order using order type KB.
Enter the required data on the customer, the consignment goods and the delivering plant.
Enter all other relevant data and save the order.
Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.
The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer concerned. If special stock of this kind already exists in the delivering plant for this customer, the goods are posted to this special stock.
Order type: KB (document category C: sales order)
Std. Delivery type: LF
Item category: KBN (not relevant for pricing and billing)
Schedule line category: E1 (relevant for deliveries, uses availability check, 631 (GI consignment: lending) to post the stock into a special consignment category in the delivering plants stock for that particular customer and material)
Copy control rules for the sales doc, item category, and schedule line category.
Use trans MB58 or MMBE to check the stock.
Consignment Issue: The Consignment issue enables the customer to withdraw consignment goods from the special stock that are to be used or sold.
Create a sales order using order type KE.
Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.
Enter all other relevant data and save the order.
Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.
The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces your total stock.
Invoice the delivery which issues the consignment goods.
Order type: KE (document category C: sales order)
Std. Delivery type: LF
Invoice: F2
Item category: KEN (relevant for pricing and deliver related billing, special stock indicator W, should determine cost too)
Schedule line category: C1 (relevant for deliveries, uses availability check, 633 (GI issue: customer consignment)
Consignment returns: proceed as follows: Consignment returns enable your customer to return goods to the consignment stock that has already been issued from it.
Create a sales order using sales order type CR.
Enter the required data on the customer and the consignment goods.
Enter all other relevant data and save the order.
Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The goods issue posting cancels the goods issue posting which was carried out when the consignment goods were issued. This posting records the return of the goods to the plant where goods receipt was carried out.
Create a credit memo for the consignment return you created in Step 1.
Order type: KR (document category H: returns)
Delivery type: LR
Credit for Returns Order type: RE (delivery or order related billing)
Item category: KRN (relevant for pricing and deliver related billing, special stock indicator W
Schedule line category: D0 (relevant for deliveries, no availability check, 634
Consignment Pick-Up: The company uses consignment pick-up to take back consignment goods that are faulty or excess materials that the customer does not need. This process is not relevant for billing since the goods remain the property of the company.
It may be beneficial to have a mandatory reference such as the consignment fill-up. In addition to it copy control rules can be used to further control it. In the copy control rules indicate the document flow. As the stock is coming back into the warehouse or plant, you can specify a returns shipping point to be automatically determined. No invoice is necessary, as the goods are not changing ownership.
Create a sales order using order type KA.
Enter the required data for the customer, the consignment goods and the plant to which the goods are to be returned.
Enter all other relevant data and save the order.
Create a returns delivery for the sales order (the system automatically chooses delivery type LR). The transaction is completed by the goods issue posting which initiates a transfer posting from the customer's special stock to your plant stock.
Order type: KA (document category C: sales order)
Delivery type: LR
No invoice
Item category: KAN
Schedule line category: F1 (relevant for deliveries, availability check against the stock on the customers consignment, 632 (Consignment pickup)
<b>Contracts</b>
Contracts represent special business relationships with customers based upon material, price, and qty. They guarantee a special price agreement with the customer and are usually called outline agreements in std SAP terminology.
There are four different types of contracts provided by SAP. They are:
1) Quantity contracts
2) Value contracts
3) Service and maintenance contracts
4) Master contracts
Regards,
Rajesh Banka
Similar Messages
-
HOW TO CALCULATE NET SALES AND CONTRACT PRICE?
Dear experts,
I have the requirement of sales price report
the report layout should be
Prod descr material Number Contract type contrcat name rebate net sales contract price units
we have the master data information is reside already in multiprovider and transaction information how to calculate in frond end ?
for sales pricing report how to manipulate teh net sales and contract price
value?
any standard formulaes is there?
plz suggest me
regardsHi,
For quick and best response unless someone answer's in this forum, post your question in SAP Community Network Forums » SAP Solutions » ERP - Sales and Distribution (SD) General or something related to your question.
Check this link if it helps -
http://help.sap.com/saphelp_46c/helpdata/en/93/74353e546011d1a7020000e829fd11/frameset.htm
Thanks,
Shambhu. -
Business Flows for Sales and Contracts process
Hi,
I needs Business Flows for sales and contracts process for my project.
Does anybody knows where i can find these BFA ?
Thanks
Regards
MehdiHi mehdi;
Please check below and see its helpful:
R12 Responsibilities And Roles Based On Business Flows [ID 406401.1]
Regard
Helios -
Business One T-Installation and Contract differences
Dear All,
What are the differences between Business One T-Installation and Contract ? Where could I find the file explain about it ?
TIA
Rgd,
SteveI am sure that there is no specific different that will give bad influence for the customers of SAP B1.
I suggest you to ask the sales or marketing dept. It seems that they could know it more detail about it or asking SAP support can also be helpful
Rgds, -
Difference in partner functions in normal and consignment sales
hi,
What is the major difference in partner functions in normal sales and consignment sales Processing?
regards
prabudhDear Prabudh
I dont think there is a difference in normal sales and consignment sales, as for as Partner Functions are concerned. The impact will be on inventory where it will get reduced immediately once you make direct sales whereas it is NOT in consignment process.
Thanks
G. Lakshmipathi -
Difference between Olant sale and Depot sale
What is the basic difference between plant sale and depot sale? is there any difference with respect to their confighration part?
Hi !
With regards to your query, as per the business requirements of a company a company can have depots and plants for retail sales , and sales directly to customers from manufacturing plants.
For this there can be different codes for depots locations and plants and different storage locations respectively.
Also pricing may vary both for raw materials and FG, since manufacturing might be carried out under a contract agreement,scheduling agreement etc and retail sales may be at standard market rates.
Thus the pricing procedures would vary.
The norms for customer account groups and credit exposure would also vary.
Plz reward points if helpful.
Rgds,
Shamik. -
Third party sales and individual purchase order MIGO DIFFERENCE?
Hi experts,
any difference between third party sales and individual purchase orders goods receipt(MIGO). What's the stock levels chages after goods receipt in both cases? How the system knows that its third party migo and individual purchase order MIGO? Can anybody clarify my question?
regards,
rajuHi
In third party you will not be able to create automatic PO
The schedule line category CS settings in VOV6 order type NB, MM item category 5 and account assignment category settings as X and in VOV7 for TAS create automatic PO ticked will ensure PR creation only and not PO
As suggested by the other friend you need to run t code ME59N or ME59 for automatic PO creation but certain condition to be met
1) In the Purchasing View of the material master data, the "Autom. PO" field must be clicked;
2) In the Purchasing View of the Vendor Master Data, the "Automatic Purchase Order" field must be clicked;
3) The Outline Agreement or Purchasing Info Record shall be maintained which will allow the automatic copying of unit price and other conditions into PO;
4) The Source List shall be maintained for the nominated vendor which was shown in either the Outline Agreement or Purchasing Info Record.
You have to run ME59N transaction manually or schedule this as a background job
Regards
Raja -
Want to pass STRS2 field into sales order and contract.
Hi Friends.
I am creating Sales order using function module IDOC_INPUT_ORDERS and Contract using SD_SALESDOCUMENT_CREATE.
Now I want to pass STRS2(House number field into Sales Order/Contract). In IDOC I tried to pass E1EDKA1-STRS2, but its not coming into Sales order output.But SD_SALESDOCUMENT_CREATE dont have an option to pass the field value.
So in that case how can I achieve the desired functionality, Is there any user exit or let me know the suitable method to achieve the functionality.
Thanks
GowrishankarYes I tried that also.I passed the value from program to user exit MV45AFZZ and updated the structure XVBADR in USEREXIT_SAVE_DOCUMENT_PREPARE, but its not getting reflected in Sales Order/Contract.
Anyone have suggestion..plz let me know.
Thanks
Gowrishankar -
Difference between intercompany sales and STO (inter)?
HI Experts
Can any one tell me what is the difference between between intercompany sales and STO(inter)?
LNaiduhi..
Intercompany sales trans.
the customer orders stock from the sales org (3001)..that belongs to comp code 3000...the Sales org 3001 then creates the sales order and indicates the delivering plant as a plant that belongs to different company code i.e. 1000..
The sales org 3001 then invoices the customer for material purchased..the system automatically creates the inter-compnay billing doc at the same time as the customer's billing doc is created,,,This inter-compnay invoic ius sent from the delivering plant to selling sales org..
Two billing doc..1. standard customer billing doc that is sent from the sales org to the customer.
2. inter-compnay doc that is sent from delivering plant ot sales org..
Inter compnay STO..
comp code 3000 has plant 3000 creates purchase order to purchse stock from plant 1000 based in comp code 1000..
the stock is delivered to plant 3000. comp code 1000 then creates an inter compnay invoice and bills compnay code 3000 for the stock...
hope it works..
Thanks -
How to extract User status for Sales and purchase contracts
Hello,
We need to load the User status linked to sales and purchase contract.
I think that there is no datasource in BI content.
What is the better solution ?
- Enhance a standard datasource like 2LIS_11_VASTH with a status field (This solution is not ok for Purchase contract)
- Create a spécific datasource to extract this status
- Others
Thanks for your help
Best regards
ChristopheHi,
In your scenario its better to use generic extractor to get the reqd data. This data can than be stored in a DSO on the BI side.
And you can look up for the user status using a routine .
Regards,
Rahul -
Difference between Mobile sales and Mobile Service
Hi All
Can anybody help and explain me what are the major defferences between Mobile Sales and Mobile Service,What are the configuration settings required in Mobile Service,Because we have to start support project for Mobile Service.
Regards
KrishnaHi Krishna,
The difference is Mobile Service is used by field technicians who provide a service to customers. Eg: an engineer who goes out to customer site to fix machinery. They can fill out the deatils on the Mobile Service application. Time spent, parts used etc..
Sales is used by sales reps, who are selling a product.
The configuration is the same for both. In fact its possible to have bothe sales and service installed on the same machine.
Regards,
Gervase -
Hi All,
Is it possible to do consignment sale process using third party. That is instead of stock being supplied by the Company a third party supplies the goods directly to the customer but this stock is to be treated a consignment stock.
Is this possible....if yes then howHI ,
Generally in Third party scenario no Movement type will trigger in SAP. just to create Invoice GR has been posted in SAP, check with MM team is there any Movement type is there to post the Stock to consignment while doing GR.
Movement 631 is Unrestricted to Consignment stock
May be similar kind of movement can be used.
Maintain the third party Item as Consignment fill up item except Billing relevance.
its just work around above explanation.
Other wise whenever Third party order created better to post the Consignment stock with order quantity quantity using user Exit and based on Invoice created u can reduce the quantity, if you want just for reporting purpose.
Thanks,
pavan. -
Worklfow driven Approvals for Inquiry/Quoatation, Sales Order and Contract,
Hello,
What scenarios/ processes within SAP SD are supported by standard SAP for auto workflow driven approval.
We need workflow driven approvals for-
Customr Inquiry/ Quotation,
Sales Order,
Contract
and Credit Approval.
Can we do these workflow scenarious in SAP? Are they supported by std SAP.
Thanks.Hi,
I would suggest you to check the standard template in SAP workflow also.
To check the standard template, goto transaction SWDD, and search by using structure seach, you will find the standard templatea under sales and distribution area.
Regarding to your requiements , you need to create the new object by extend from the standard object BUS2032 by using transaction SWO1.
[Workflow Tutorial|http://www.sdn.sap.com/irj/scn/weblogs;jsessionid=(J2EE3417100)ID1399619950DB01372531338821066946End?blog=/pub/wlg/7288]
Best regards, -
Difference between the R/3 internet sales and CRM Internet sales
Hello
I want to know the difference between the R/3 internet sales and CRM Internet sales
If there is any document send it to my email
[email protected]
Regards
Jacopo francoisJacopo,
R/3 ISA and CRM ISA differ in terms of Backend and some of the functionalities.
CRM ISA:
- CRM system as backend.
- Till 4.0, Marketing functionalities only available in CRM ISA
- IPC, Trex mandatory
- Items not in catalog can be ordered
- Catalog views supported
R/3 ISA:
- R/3 system as backend. Suitable for organizations without CRM.
- No MArketing till 4.0 (am not sure about 5.0 though!)
- IPC, Trex not mandatory
- Items not replicated through catalog cannot be ordered
- No catalog views supported
From the code level, you have to use different java packages to make changes. XCM scenarios too are different for both.
Generally, if you have CRM, it makes sense to deploy CRM ISA. But, if there is no CRM, then you can go for R/3 edition of ISA.
-Pat -
What is the difference between unlocked and contract free
hello
i want to know what is the difference between unlocked iphone and contract free iphon?Unlocked means that you can use any sim card in the phone all the time and keep swapping and the phone will still work. You will pay full price for the phone.
Contract actually means that you will buy the phone for the full price, but the phone will then become locked to the first carrier whos sim card you insert into the phone and if you want to use another sim card, you'll need to get the phone unlocked from that carrier.
If you want an unlocked phone, then buy an unlocked phone and not a contract free phone - if you pay full price for the phone it's a no brainer to buy anything less.
Maybe you are looking for
-
Iphone won't automatically re-connect to wi-fi; have to re-enter password each time
I just "upgraded" my wi-fi router to a Netgear WNDR3400. Everything seems to be set up fine, and I'm able to connect with our various iphones, ipads, and AppleTV. But our iphones won't automatically re-connect to the network after the connection is
-
In FAGLL03 GL related Vendor name display
Hi When i execute report in FAGLL03 for retention account, is it possible to display GL related vendor name feild in FAGLL03 report?
-
How do I get firewire support under XP running on OSX 10.8.2?
I have an old Nikon film scanner that is bundled with Nikon scanning software that requires Windows XP. The film scanner has only a firewire cable. My iMac is running OSX 10.8.2. I installed Oracle's (free) VirtualBox and was able to get XP runnin
-
Can a Salesforce lead be created automatically upon completion of an Echosign widget?
I have created an Echosign widget that is hosted on my website to collect information from potential customers. I would like the information collected in that widget to be sent to Salesforce to create a new lead. Much of the documentation I see is ho
-
Hi friends There is critical issue that i need to configure the picklist out put. Please explain me step by step configuration, assignment, out put type used,condition record and from where we have to generate the pick list out put? whether in delive