Consignment stock process

consignment stock process

Hi Deva
Please find the Consignment Sales Process in SAP
Consignment fillup (send materials to customer consignment).
Here you have a consignment fillup order and a consignment fillup delivery.
Consignment issue (issue materials from customer consignment to the customer).
Here you have a consignment issue order, consignment issue delivery and a consignment issue invoice. (the flow is very similar to a normal OR flow, but the materials are issued from the consignment stock instead of plant stock unrestricted).
Consignment return (return materials from customer ownership to customer consignment).
Here you have a consignment return order, consignment return delivery and a consignment return invoice. (the flow is very similar to a normal RE flow, but the materials are returned to the consignment stock instead of plant stock returns).
Consignment pickup (pickup consignment stock and move it to plant stock).
Here you have a consignment pickup order and a consignment pickup delivery.
Note that in consignment fillup and consignment pickup there are no invoices since there is no change of ownership for the materials.
Regards
Vishal
"The Strongest principle of growth lies in Human choice"

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Consignment stock - consumption advice for lot controlled item

Consignment stock - consumption advice for lot controlled item
Just have a look at consignment stock processing in 11.5.10. One question I have is how a supplier receives a consumption advice. I try to print the blanket release and I cant. Also from all I can see I cant see where on the consumption advice the lot numbers/serial numbers used are indicated.
Can anyone help?

Hi,
SAP does availability check based on IM stock and not on WM stock.
So I dont think there are any such reports available that shows WM stock with considering delivery and sales order quantity.
regards,

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.

Transfer consignment stock between special stock partners

Dear Friends,
we have a scenario wherein i have two special stock parnter defined for the consignment stock processing. i want to transfer some material from one stock partner to another stock partner.
can someone help regarding this scenario.

Dear rahul patil
To reduce special stock for a particular sold to party, you can use MB1A / 291W so that it will ask for customer code, where you need to define the sold to party. Similarly to add stock, you can use MB1A / 292W. But b4 doing this, check in development and get concurrence with your FI people also for accounting implications.
thanks
G. Lakshmipathi

Consignment Vendor Stock Process

Dear Gurus,
I've been studying the Consignment Procedure in the web and read a lot of documentation about it. However, I'm still puzzled on the proper steps. Sorry I'm new to MM.
Can you help me with the procedure? Tcode?
1. Create Consignment PO (K)
2. GR Consignment PO (101 K)
3. Upon consumption, transfer these stock to own WH via 411K.
No my next question is, how to proceed on the payments, invoicing, etc? Our closing period is at the end of the month.
Kindly help. Thank you!

Hi,
Follow the below steps to achieve consignment process..
Firstly create consignment inforecord in tcode me11 and its mandatory for consignment.
Create PO with Item category as K.
GR in tcode migo with 101 K
Check in tcode MMBE and you can look at your stock as consignment stock.
Goto MIGO-Goods issue 201 K and issue the goods for consumption.
Then make selttlement to vendor for the qty which is consumed through tcode MRKO.
Note-Here price comes into MRKO from your inforecord.
Thanks

Vendor return process for consignment stock not yet own by you

Hello guru,
I need some help from you on the following type of vendor return.
We receive vendor consignment goods into our warehouse and we notice we would like to return back to the vendor after several defects
defect were spotted few month later, how to execute vendor return like this given that the stock still own by the vendor
in accounting perspective?
Should I just create another PO and flag the return indicator and perform a movement 161 in MIGO? Is this method workable way
of doing this?
What if we need a delivery document to be generated after 161 movements is posted in MIGO?
Appreciate it.
Tuff

Hi,
   The vendor consignment stock has no accounting impact till the stock is issued to own stock or consumed (411K or 201K movement).
   Standard SAP recommends to use direct return delivery using 122 movement in MIGO to return the consignment stock material back to vendor.
   If you still wanted to proceed with return PO, then maintain the message ME640 as warning message (W) in the path: OLME - Environment Data - Define Attributes of System Messages - System messages. Now, create a return PO and create GR against the return PO.
   If you want proceed with SD route for returning to vendor, refer the thread: Return PO with Text material shipping tab
Regards,
AKPT

What is the process for transferring Consignment Stock from Article to Article?

Dear Gurus
Just like the Movement Type 309 is used to transfer the stocks of a particular article to Another Article, Is there a Movement Type for transferring the Consignment stock from one article to the other?
As I see, in MB1B there is no Movement Type 309K.
How should I go about this. Kindly suggest.
Regards
Sahil G.

Hello,
As mentioned by Sridhar, we cannot directly transfer article into another in consignment. The reason is that valuation affects during article to article transfer and consignment stocks are not valuated.
You have to trasfer the consignment stock to own stock using 411 K (MB1B). Now, use movement type 309 to transfer the stock from article to another. Afterwards, transfer back to consignment using 412 K..
Thanks,
Venu

Request for help on Vendor Consignment stock and Customer Consignment Stock

HI Experts,
We have a requirement to segregate the Customer Consignment stock and Vendor consignment stock from the total Consignment stock available in the BW report.
Currently in the report the calculation of total consignment stock is based up on Issued consignment stock and Received consignment stock .
The calculations of the Issued and Received consignments stocks are specified below.
Issued consignment Stock
The below following parameters are checked when the quantity is considered as Issued consignment Stock
Transaction or Process keys : 100, 101, 104, 105, 106, 110
Application    :   MM
Stock relevance : 1
Adding to the above conditions,
u2022     When the stock category is u2018Ku2019, the Quantity in Base Unit of Measure is assigned to Issued Consignment Stock. or
u2022     When the stock category is blank and the stock type is u2018Eu2019 or u2018Ku2019 or u2018Lu2019 then also the Quantity in Base Unit of Measure is assigned to Issued Consignment Stock.
Received Consignment Stock :
The below following parameters are checked when the quantity is considered as Issued consignment Stock
Transaction or Process keys : 000, 001, 004, 005, 006, 010
Application    :   MM
Stock relevance : 1
Adding to the above conditions,
u2022     When the stock category is u2018Ku2019, the Quantity in Base Unit of Measure is assigned to Received Consignment Stock. or
u2022     When the stock category is blank and the stock type is u2018Eu2019 or u2018Ku2019 or u2018Lu2019 then also the Quantity in Base Unit of Measure is assigned to Received Consignment Stock
Only stock category and stock type are available in the BW report for determining the type of consignment stock . So, with respect to stock category and stock type, could you please kindly advise if it is possible to determine the Customer consignment stock and Vendor consignment stock in the report
Thanks a lot
Warm Regards,
Jeswanth
Edited by: jeswanth kadali on Jun 23, 2009 4:10 PM

Hi,
We can settle consignment goods to vendor through MRKO transaction.Even user transafers consignment stock to own stock through MB1B transaction.We can use same document to settle vendor through MRKO transaction.
What is implications of such Action (like Goods issue, 1 step transfer) on SAP.
Nothing will happpen after after stock converted to own stock.
Regards,
JS

Return of customer consignment stock

Dear all,
If, in the standard SAP system, a return delivery from customer consignment stock is done (sales doc: KA, Mvt: 632) the goods are moved to the unrestricted stock.
This isn't a very good solution, as the users often forget to move the goods to blocked stock (after good receipte from consignment stock) and then, theses goods are included into the MRP Run.
How do you handle returns from consignment stock? Do you have a 'One - Step' solution (consignment customer stock --> blocked stock) in place? If yes, could you please explain me the process you are using?
Do you know why SAP did not implemented the direct movement to blocked stock?
Thank you for your help.
Best regards,
Thomas

Hi
It is not possible to post to blocked stock as 632 movement is actually reversal of 631 movement.
631 movement transfer stock from 'unrestricted' to 'customer consignment' .
Business standards will always be to send to 'customer consignment' from unrestricted stock only.
Nobody will ask for sending from 'blocked' to 'customer consignment' and hence SAP did not provide for the same. So reverse also could not be found to put the same to blocked.
Why don't you type below movement type for requirement.
655---goes to QI inspection straight away (you can move them back to unrestricted t code MB1B with movement type 321)
or
657----blocked stocks (you can move them back to unrestricted t code MB1B with movement type 343)
Regards
Antony

Stock Transport Order (STO) for Consignment Stock

Hi Gurus,
I have a business process that need a STO of Consignment Stock material process.
Example:
In Plant B the stocks of material XYZ is 10 Pcs, but separated with two condition 3 PCs of Unrestricted Stock and 7 PCs of Consignment (Vendor) Stock.
Plant A need 5 pcs of material XYZ from Plant B.
The requirement is to allocate 5 qty in delivery as below:
3 PCs picked from Unrestricted Stock (priority to allocate from unrest.stock first)
2 PCs picked from Consignment Stock (second priority)
How can we do STO Plant to Plant for Consignment (from Vendor) Stock material like I mention above ?
Regards,

Hi ...
Sorry .. I have to inform the requirement details ..
The requirement is "without make it as own stock, so the material consignment stock directly transport from Plant A to Plant B using delivery process as STO standard process"
Is there any best practice to do this ?
Regards,

Consignment Stock - Free Items - MM

Dear All,
Regarding consignment stock from vendor and handling free items with existing current stock.
We have 100 pcs consignment stock from vendor A.
As this stock issued time to time based on requirement and paid to vendor for the utilized quantity, now want to handle the below process.
Consignment stock : 100 pcs.
As per the vendor current offer - every 10 pcs 1 pc free. Now we have 100 pcs, so if we consider 90 pcs issued and rest 10 pcs as free - how to handle this in MM inventory and pay amount for 90 pcs only to vendor and remaining 10 pcs as free.
PR - PO - GRN created for 100 pcs earlier.
Please suggest the procedure to handle this in system.
Regards,
Syed Hussain.

Solved..... submitted for FI verification.....

Return to Consignement stock for Return sales order

Hi,
For Home delivery Sales order- Sale is being performed from Vendor consignment stock & it works good with 601K movement .For Return in this case, Return sales order is created & PGR is performed against delivery.While doing this - the returned consignment material goes to unrestricted blocked stock. But we need this to go back to Consignment stock.
Can any one suggest a solution on this ?
Thanks in advance for quick solution, sharing your inputs
Krish

Standard movement types for processing returns in SD (651 to return stock, 653 to unrestricted, ...) are not capable to post to special stock K (consignment).
It would be probably best to use the reverse to normal issue - movement type 602 K, though I have never tried this scenario. This should work fine, so make sure the movement type in your returns order (entered in the schedule line category) is 602 (or a copy of 602).
If you still have problems (it is not 100% certain that the system will correctly determine the vendor for the consignment, and stock determination might not help either), then you can always alter the copy control order --> return order (if you are creating by reference), or try implementing BAdI - either LE_SHP_DELIVERY_PROC to enter the special stock indicator and vendor in the returns delivery item, or LE_SHP_GOODSMOVEMENT to modify the generated article document). But these are all non-standard solutions...
regards
Krzysztof

Consignment stock GR Posting - system creates additional quant

During GR posting for an Inbound delivery in WMS system, System is not clearing the negative quant created for consignment stock in interim storage area, instead it posts an addiitonal quant in the interim area.
Observation: Inbound delivery replicated in WMS system is having special stock number (Field name - SONUM) with four leading zeros ( 0000113000). Later during TO creation system creates negative quant in 902 with 10 Leading zeros
(0000000000113000) and positive quant gets created in XXX destination storage type with 10 leading zeros after TO confirmation.
The GR posting was supposed to clear the negative quant , but it creates an additional quant with 4 Leading zeros resulting in totally 3 quants .
Since system attempts to take 4 leading zeros probably from the inbound delivery , it is unable to clear the negative quant already created with 10 leading zeros.
When we replicated the consignemnt putaway process in centralized WM system, things are working fine.
Any guess as to how and why system is creating additional zeroes? (which inturn is the reason why it creates another quant)
Regards
Prajith

No answers at all

Consignment Stock

Hi,
We have a scenario with our client with Consignment Stock. All the materials are non-valuated materials. For the same materials, some of them are procured externally and for some the vendor stocks the material at the client's premises and he is payed as per consumption. Can anyone suggest on how to handle this.
Thanks
Hari

Hari,
I don't think this is going to be as simple as it may appear.
You mentioned that All the materials are non-valuated materials.
I would assume this implies that all your materials belong to a non-valuated material type (UNBW or similar).
And now you want to use the consignment process for your some of these materials.
This is not possible as such because your non-valuated materials require an account-assignment category (such as cost center K - since these are expense items) in your PO for their procurement; the consignment process requires item category K (consignment) in your PO, and SAP does not allow this combination. There is actually a config setting (check the purchasing->account assignment menu) where you can maintain combinations of allowed item categories/account-assignment categories but unfortunately this will also not help (since this has been hard-coded by SAP - basically item category K cannot be used with an account assignment category). In effect, this is violating the basic premise of consignment - consignment stock is vendor's stock which you are storing at your premises - this stock has to be valuated stock - you cannot manage it as non-valuated stock.
So, the only options I can think of is to actually convert all your non-valuated materials into valuated materials. There are multiple options (changing material type, dummy plants, new material masters etc) with this and each one has to be analyzed.
Hope this helps.
H Narayan

Customer consignment materials - process flow

Hi PP Guru's,
pls explain customer consignment materials - process flow ?
how to recd parts and transaction for consignment parts.
customer ordered FG, but some of the components (items) customer consignment parts, other parts buying from other vendor.
Regards,
Sankaran

One alternative would be:
- Customer material (CM) are non valuated ones.
- BoM contains both CM and normal raw materials (CS01)
- Routing ot Recipes is the base for manufacturing costing (CA01 or C201).
- Create a process order for the product (COR1)
- Do the whole processing of the order (release, GI, GR, Confirmation, Settlement).
-.Delivery the product to the customer (and eventually the remaining CM )
The process is just like the normal, only there are some differences in costing, and the stock of CM has no value.

Consignment stock process

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