Timing of Confirmation from Consignee to Company during Consignment Issue

Hi, The consignment process is something where the company keeps his stocks at consignee place with full ownership (consignment fill-up). When the consignee sells the stock then the consignee informs the company and company invoices the consignee (consignment issue). Now my question is what happens if the consignee sells the item and informs the company (owner) after sometime ? e.g. if consignee sells an items and informs the company after say 1 year, then by this time the consignee might have earned some interest on the sold items for year and after 1 year it pays the amount to the company (owner). So the consignee profits more (one through higher selling price and second by informing and paying the amount to the company after sometime). To prevent this, is there any stock checking carried out from company side to the consignee ? Or does any other sort of process take place to prevent this ? Thanks.

Hi there,
In consigment process, stock is maintained as consignment special stock. When a consignment fillup happens, stock will still be under the pocession of the company but under consignment special spock.
If you see the item catg KEN (consignment issue item) in VOV7, you will find that there is a special stock indicator W. When you raise a consignment issue order KE, basing on the item catg determination, automatically KEN will be proposed. So when you PGI a KEN item, stock will automatically deducted from consignment special stock. When the stock in consignment special stock reduces, it means that a consignment issue has happened.
Also KEN item catg is relevant for billing. So when you PGI a KEN item, automatically system do pricing & will generate billing. (Note that for consignment fillup item KBN, there is no pricing or billing relevance).
Basing on these settings, when a consignment issue happens, there is no need for some1 to inform the company. Even though the stock is there at a different location, consignment stock visibility is available in SAP.
Hope this clarifies.
Regards,
Sivanand

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