Consignment Sales Process in SAP
Consignment Sales Process in SAP
The consignment process in SAP
standard consist of four small processes:
A D V E R T I S E M E N T
Consignment fillup (send materials to
Here you have a consignment fillup order and a consignment
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
Note that in consignment fillup and
consignment pickup there are no invoices since there is no change of ownership
for the materials.
How to perform a consignment order?
In consignment orders you are allowing
the stock to sit in your customer location. Once he informs that he used the
stock you will invoice him. If he returns the stock you will accept the stock to
take it back.
It is defined in 4 steps.
1. Consignment fill up:
Sales document type is KB
Item category KBN
shedule line category E1
In this step, you are not invoicing the
customer. document flow is sales order ---- delivery item category. It will not
be relevent for billing and pricing because you are not charging money for these
goods in this step.
In schedule line category, you will set
movement type 631 & set for availability check and TOR.
2. Consignment Issue.
Once the customer informed you that he used all the goods
or partial goods then you will create consignment issue for used goods.
Sales document: KE
Item category: KEN
shedule line category: C0 or C1
Here you are invoicing the
customer(because he used the goods). you are assigning the delivery documnt and
billing document to the sales document.
In item category, you are setting
relevent for billing, pricing, special stock.
In schedule line category, your setting
is 633 movement type, relevent for availability check & TOR.
3. Consignment Return:
Customer found that some goods are damaged or he not able
to sold the goods he want to send it back. that you are creating this document.
Sales document type: KR
Item category: KRN
Shedule line category: D0
You will assign delivery document and
billing to sales document. you will create return order, return delivery, return
Your setting item category relevent for billing, returns,
pricing, special stock.
Your setting schedule line item category: 634 movement
type, NO availability NO TOR.
4. Consignment Pick up:
Even if you create the consignment return the goods are
not come to direct to your plant. For that you need to create consignment pick
up. here the owner ship is not changing so you do not need to create billing.
Assign retrun delivery to sales document type.
Sales document: KA
Item category: KAN
schedule line category: F0 & F1
Your setting item category relevent for
returns. any shedule line category relevent for 632 movement type, MRP,
availability check, delivery.