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Consignmentprocess
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SrinivasuluAlgaskhanpet,Sr.SAPSDConsultantatAccenture
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PublishedonDec28,2014

ThisdocumentprovidesoverviewofConsignmentprocessanditsrelatedconfigurationinSAPSD
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Consignmentprocess
1. 1.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page1
Consignmentgoodsaregoodswhicharestoredatthecustomerlocationbutownershipremainswiththe
companyitself.Thecustomerisnotliabletopayforthesegoodsuntiltheyremovedfromconsignment
stock.Customersstoretheconsignmentgoodsattheirownwarehouse.Thecustomercanaccessthegoods
intheconsignmentwarehouseatanytime.Consignmentstockisbilledwhentheyareremovedfromthe
warehouseandonlyfortheactualquantitytaken.Generallycompanieswilldoconsignmentprocessfor
slowmovingitemsornewlylaunchedproducts.Whenevermanagementdecidestodumpthestockon
consignmentbasis,companywillinformtoallthecustomers.Ifcustomeracceptsthenwedoconsignment

fillupprocess.Consignmentprocessisclassifiedinto4types:1.ConsignmentFillUp2.Consignment
Issue3.ConsignmentPickUp4.ConsignmentReturnsWewilldiscussonebyonenow.1.Consignment
FillUp:Consignmentfillupisallaboutdumpingthestockatcustomerslocationwithoutbilling.Process:
Consignmentfillup>Delivery>ProformainvoiceCF>KBN>E1>631Documenttype:CF
2. 2.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page2Item
Category:KBNFromscreenshotwecanseethatconsignmentfillupisnotrelevantforbilling.Inthiscase
forIndianscenarioswewillcreateproformainvoice.SchedulelineCategory:E1Movementtype:631
3. 3.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page3From
abovescreenshotwecanseethatmovementtypeforconsignmentissueis631.Theeffectofmovement
type631isitwillreducethestockfromunrestrictedstockanditwilladdthestocktoconsignmentstock.
IntheabovescreenshotwecanseethestocklevelsofSMobile.Letsdotheconsignmentfillup
process:CreateOrder:T.Code:VA01Wecanseethat,asconsignmentfillisnotrelevantbillingthenet
valuefortheorderwillbeZERO.Savetheorder.
4. 4.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page4Create
Delivery:T.Code:VL01NEnterthepickingquantityanddothePGI.Andcheckthestockoverview.
T.Code:MMBEWiththemovementtype631stockisreducedfromunrestrictedstockandaddedto
customerconsignment.Inconsignmentfillupaccountingdocumentwillnotbegenerated.Process:
Consignmentfillup>Delivery>ProformainvoiceCF>KBN>E1>631
5. 5.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page52.
ConsignmentIssue:Inconsignmentissueourcustomersellsthegoodstotheendcustomer.Process:
ConsignmentIssue>Delivery>InvoiceDocumenttype:CIItemCategory:KEN
6. 6.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page6Inthe
abovescreenshotwecanseethatconsignmentissueisrelevantforbilling.KENItemcategorywillhave
specialstockindicatorW.ThespecialstockindicatorWcontrolsthatwhiledoingdeliveryin
consignmentissue,systemconsiderstheconsignmentstock.SchedulelineCategory:C1Theeffectof
movementtype633isitwillreducethestockfromconsignmentstockandsystemgeneratesinventory
accountingdocument.Theaccountingdocumentis:COGSa/cDr.ToInventorya/cCr.Whenwedeliver
thegoods,systemdeductsthestockfromconsignmentstockwiththehelpofspecialstockindicatorW
initemcategoryKEN.Consignmentissueisrelevantforbilling.Weraiseinvoicetothecustomer.
ConsignmentFillupandconsignmentissuearerelevantforavailabilitycheck.
7. 7.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page7Create
Order:CreateDelivery:IntheabovescreenshotwecanseethatpickedquantityisZERO.Thereasonis
wealreadydeliveredgoodstothecustomerintheConsignmentFillupitself.Andclickonpostgoods
issue.These50quantityaredeliveredtotheendcustomerfromourcustomer.
8. 8.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page8Q.Whywe
aredoingdeliveryagaininconsignmentissueaswealreadydeliveredthegoodstothecustomerin
consignmentfillup?A.i.Totransfertheownershipii.Toreducethestockfromconsignmentstock.Check
thestocklevelsusingt.codeMMBE.Afterdoingconsignmentissuewecanseethatstockisreducedto50
quantityaswecreatedconsignmentissuefor50quantity.Consignmentisrelevantforbilling.Create
Invoice:Thisisallabouttheconsignmentissues.Nextwelldiscussaboutconsignmentreturns.
9. 9.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page93.
ConsignmentReturns:Whenendcustomerreturnstheconsignmentgoodstoourcustomersthenwedo
consignmentreturns.Documenttype:CONRItemCategory:KRN
10. 10.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page10KRN
itemcategorywillhavespecialstockindicatorW.ThespecialstockindicatorWcontrolsthatwhile
returninggoodsstockwillbeaddedtoconsignmentstock.Consignmentreturnsisrelevantforbilling.
Schedulelinecategory:D0Theeffectofmovementtype634isitwillreducethestockfromconsignment
stockandsystemgeneratesinventoryaccountingdocument.Theaccountingdocumentis:Inventorya/c
Dr.ToCOGSa/cCr.Consignmentreturnsisnotrelevantforavailabilitycheck.Process:Consignment
return>Returnsdelivery>CreditforreturnsWellstartwithcreatingreturnorder.
11. 11.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page11Create
Order:CreateReturnOrder.Whilecreatinganyreturnorderweneedtomentiontheorderreason.Billing
blockshouldalwaysbeblank.Wecanseethatsystemisproposingnetvalueastheconsignmentreturnsis
relevantforbilling.CreateDelivery:
12. 12.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page12Herewe
canseethepickedquantityisZERO.Thereasonishereendcustomerisreturningtoourcustomer.So,
thestockwillbeaddedtoconsignmentstockandnotunrestrictedstock.Companyisnotpickingany
materialinConsignmentreturns.AfterdoingPGI,checkwiththestockoverviewusingt.codeMMBE.

Herewecanseethatwhateverstockisreturnedbytheendcustomerisaddedtoconsignmentstockbutnot
unrestrictedstock.IthappenswiththespecialstockindicatorW.Consignmentreturnsisrelevantfor
billing.CreateInvoice:Herewecanseethatwearecreatingcreditforreturnsnothingbutacreditmemo
asitisareturnsprocess.
13. 13.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page134.
ConsignmentPickup:Ifthereisanyunsoldstockwiththecustomer,customersaskstotakebackthe
consignmentstock.Thenwedoconsignmentpickup.Documenttype:CPItemCategory:KAN
14. 14.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page14
Consignmentpickupisnotrelevantforbilling.ButinIndianscenarioswearegoingtocreateproforma
invoice.Schedulelinecategory:Theeffectofmovementtype632isitwillreducethestockfromthe
consignmentstockandstockwillbeaddedtounrestrictedstock.Andinventoryaccountingdocumentwill
notbegenerated.Process:Consignmentpickup>Returnsdelivery>ProformainvoiceCreateOrder:
15. 15.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page15Inthe
abovescreenshotwecanseethatsystemisnotproposinganynetvalueasconsignmentpickupisnot
relevantforbilling.Weneedtomentiontheorderreasonandremovebillingblockifany.Createdelivery:
Herenoneedtopickremaining75quantityastheownershipofthestockisstillwiththecompanyitself.
AfterdoingPGI,checkwiththestockoverviewwitht.codeMMBE.Herewecanseethatafterdoing
consignmentpickup,completeconsignmentstockisaddedtounrestrictedstock.Thisisallaboutthe
consignmentbusinessprocess.Letussummarizethewholeconsignmentprocessonce.
16. 16.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page16
Summary:Consignmentgoodsaregoodswhicharestoredatthecustomerlocationbutownershipremains
withthecompanyitself.Thecustomerisnotliabletopayforthesegoodsuntiltheyremovedfrom
consignmentstock.Customersstoretheconsignmentgoodsattheirownwarehouse.Thecustomercan
accessthegoodsintheconsignmentwarehouseatanytime.Consignmentstockisbilledwhentheyare
removedfromthewarehouseandonlyfortheactualquantitytaken.Generallycompanieswilldo
consignmentprocessforslowmovingitemsornewlylaunchedproducts.Whenevermanagementdecides
todumpthestockonconsignmentbasisthecompanywillinformtoallthecustomers.Ifcustomeraccepts
thenwedoconsignmentfillupprocess.Consignmentprocessisclassifiedinto4types:1.Consignment
FillUp2.ConsignmentIssue3.ConsignmentPickUp4.ConsignmentReturns1.ConsignmentFillUp:
Consignmentfillupisallaboutdumpingthestockatcustomerslocationwithoutbilling.Documenttype:
CFItemCategory:KBNSchedulelinecategory:E1Consignmentfillupprocessisnotrelevantforbilling.
ButinIndianscenarioswewillcreateproformainvoice.CF>KBN>E1>631Process:Consignment
fillup>Delivery>ProformainvoiceTheeffectofmovementtype631isitwillreducethestockfrom
unrestrictedstockanditwilladdedtotheconsignmentstock.Inventoryaccountingdocumentwillnotbe
generated.Whilecreatingconsignmentfillupwecanseethatsystemwillnotproposeanynetvalueasitis
notrelevantforbilling.
17. 17.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page17When
wedodeliverysystemdeductsthestockfromunrestrictedstockandaddstotheconsignmentstockwith
thehelpofmovementtype631.2.ConsignmentIssue:Inthisstepourcustomersellsthegoodstotheend
customer.Documenttype:CIItemcategory:KENSchedulelinecategory:C1ItemcategoryKENwill
havespecialstockindicatorW.ThespecialstockindicatorWcontrolsthatwhiledoingdeliveryin
consignmentissuesystemconsiderstheconsignmentstock.Consignmentfillupprocessisrelevantfor
billing.CI>KEN>C1>633Process:Consignmentissue>Delivery>BillingTheeffectofmovement
type633isitwillreducethestockfromconsignmentstockandsystemgeneratesinventoryaccounting
document.Theaccountingdocumentis:COGSa/cDr.ToInventorya/cCr.Q.Whywearedoingdelivery
againinconsignmentissueaswealreadydeliveredthegoodstocustomerinconsignmentfillup?A.i.To
transfertheownershipii.Toreducethestockfromconsignmentstock.Inconsignmentissuewecansee
thatsystemwillproposenetvalueasitisrelevantforbilling.Whenwedeliverthegoods,systemdeducts
thestockfromconsignmentstockwiththehelpofspecialstockindicatorWinitemcategoryKEN.3.
ConsignmentReturns:Whenendcustomerreturnstheconsignmentgoodstoourcustomersthenwedo
consignmentreturns.
18. 18.CONSIGNMENTPROCESSBySrinivasuluAlgaskhanpet(Sr.SAPSDConsultant)Page18
Documenttype:CONRItemcategory:KRNSchedulelinecategory:D0CONR>KRN>D0>634
Process:Consignmentreturns>Returndelivery>CreditforreturnsKRNItemcategorywillhavespecial
stockindicatorW.ThespecialstockindicatorWcontrolsthatwhilereturninggoodsstockwillbe
addedtoconsignmentstockandinventoryaccountingdocumentwillbegenerated.Itisrelevantforbilling.
Theeffectofmovementtype634isitwillreducethestockfromconsignmentstockandsystemgenerates
inventoryaccountingdocument.Theaccountingdocumentis:Inventorya/cDr.ToCOGSa/cCr.4.

ConsignmentPickup:Whenourcustomeraskstotakebacktheconsignmentstockthenwedo
consignmentpickup.Documenttype:CPItemcategory:KANSchedulelinecategory:F1CP>KAN>
F1>632Process:Consignmentpickup>ReturnsdeliveryTheeffectofmovementtype632is,itwill
reducethestockfromconsignmentstockandthestockwillbeaddedtounrestrictedstock.Inventory
accountingdocumentwillnotbegenerated.
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