Overview:
Consignment is the process of delivering a vehicle by an automotive manufacturer to a dealer without creating an outbound invoice. This is usually required if dealer does not have an end customer but wants the vehicle for convincing prospective customers or at times when manufacturer wishes to support its dealer financially.
The vehicle which falls under the consignment category although stored at the dealer premises is owned by the manufacturer and the dealer is not obliged to pay for these vehicles till the time the vehicles are on consignment stock. The dealer has the option to either consume the vehicles from the consignment stock if they have an end customer or return the vehicle back to the manufacturer once the consignment period is over.
Business Process Highlights:
The decision making process and determination of consignment vehicles is done by Manufacturer based on the requests sent across by the dealer
As long as a vehicle is marked as a consigned vehicle, it cannot be Outbound Invoiced. However, the physical delivery does not get affected.
In the period of consignment all vehicles will financially remain on manufacturer stock
The vehicle can be put on consignment earliest when ordering the vehicle. The latest that a vehicle can be put on consignment is before the vehicle exits the dealer premises en-route to the end customer premises.
The actual consignment period starts only when the vehicle reaches the dealer premises.
While a vehicle is on consignment amendments to the vehicle order or dealer trades cannot be performed.
The vehicles on consignment are marked as special stock which allows for the vehicles on consignment to be tracked separately
Consignment stock is managed separately within the manufacturer stock so that the information is available as to exactly what stock is stored at the dealer location.
Process Flow:
Vehicle Consignment Fill Up:
This is the process by which a manufacturer stores the vehicle at the dealer premises but the manufacturer remains the owner of the vehicle. Sales order type for consignment filling is – KB
In vehicle consignment fill up only order and vehicle delivery takes place
The steps to create the Vehicle Consignment Fill Up within SAP are as follows:
Step 1: Enter the Transaction Code VA01 in the Command Field
Step 2: The order type to be entered is KB (Consignment Fill Up)
Step 3: The Sales Organization/Distribution Channel/Division has to be entered.
Step 4: Once all fields are filled hit the “Enter” key to move to the next screen
Step 5: Enter Sold to Party / Ship to Party / PO Number/ PO date / Material /Order Quantity.
Step 6: Click on the 
button
Step 7: The message as shown below is displayed on the screen
Vehicle Consignment Issue:
The dealer can choose take a vehicle from the consignment stock and use it as a normal dealer stock wherein generally the vehicle is sold to an end customer. If this happens then the manufacturer will raise an invoice to the dealer who will then raise an outbound invoice to the end customer to whom the vehicle is sold. The outbound invoice also triggers the delivery of the vehicle from the dealer premises to the end customer premises.
This process is the vehicle consignment issue, and the sales order type is KE.
For Vehicle Consignment Issue, Order, Delivery and Invoices take place
Step 1: Enter the Transaction Code VA01 in the Command Field
Step 2: The order type to be entered is KB (Consignment Issue)
Step 3: The Sales Organization/Distribution Channel/Division has to be entered.
Step 4: Once all fields are filled hit the “Enter” key to move to the next screen
Step 5: Enter Sold to Party / Ship to Party / PO Number/ PO date / Material /Order Quantity.
Step 6: Click on the button
Step 7: The message as shown below is displayed on the screen
Vehicle Consignment Return:
Once a vehicle has been issued to a dealer from the consignment stock the vehicle can be returned by the dealer to the manufacturer based on factors like damaged vehicle, failure in quality checks etc. The process of returning the vehicle is called vehicle consignment returns
This process is the vehicle consignment return, and the sales order type is KR. For Vehicle Consignment Return, Order, Delivery, Invoices and Credit memos can take place
Step 1: Enter the Transaction Code VA01 in the Command Field
Step 2: The order type to be entered is KR (Consignment returns)
Step 3: The Sales Organization/Distribution Channel/Division has to be entered.
Step 4: Once all fields are filled hit the “Enter” key to move to the next screen
Step 5: Enter Sold to Party / Ship to Party /Material /Order Quantity.
Step 6: Enter Order Reason
Step 7: Click on the 
button
Step 8: The message as shown below is displayed on the screen
Vehicle Consignment Pickup:
At the end of the consignment period the manufacturer might take back the vehicle into its own stock. The vehicle is moved from the dealer premises to the manufacturer premises. This process is the vehicle consignment pickup or consignment cancellation.
The sales order type used over here is KA. In this case for the vehicle order and return delivery takes place.
Step 1: Enter the Transaction Code VA01 in the Command Field
Step 2: The order type to be entered is KA (Consignment pickup)
Step 3: The Sales Organization/Distribution Channel/Division has to be entered.
Step 4: Once all fields are filled hit the “Enter” key to move to the next screen
Step 5: Enter Sold to Party / Ship to Party /Material /Order Quantity.
Step 6: Click on the 
button
Step 7: The message as shown below is displayed on the screen
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