Consignment Process

[Former Member]

hi all,

i need to few points about consignment process:-

1. What is Consignment Stock? How to create Consignment Stock? How to check Consignment Stock?

2. How Cosignment Process gets configured in System?

also, if there is something, which is important, and required to know about process - Please share.

thanks..

[Former Member · Accepted solution]

Dear Yogi,

Defintion - Consignment Stock: The stock supplied by the vendor is in the companies premises with the company having no liability for the same. The liability for the company will only be affected when the goods are issued from the consignment stock for use.

[Consignment Stock and Steps involved in consignment Cycle|]

Creation - Consignment Stock: Everything is the same as a normal PR or PO, except: Enter the item category u201CKu201D for the consignment item. This ensures that the Goods Receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Also, do not enter a net price.

[Create Consignment Stock w/o PO|]

To Check Consignment Stock:

T. Code: MD04 - company owned stock as well as the consignment stock, together.

T. Code: MB52 - separate out the consignment from our company owned stock

Enter plant, tick the "also select special stocks" flag, and enter special stocks indicator as "k"

[Consignment Settlement|]

Now, as far as Consignment Proces is concerned:

In consignment processing, the vendor provides materials and stores them on the enterpriseu2019s premises. The vendor remains the legal owner of the material until materials are withdrawn from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, it can also be arranged with the vendor that the ownership of the remaining consignment material is taken over after a certain period of time.

Features:

• The consignment stock is managed under the same number as the enterpriseu2019s own stock. Consignment stock can, therefore, be transferred to the available stock.

• It is possible to define consignment prices in foreign currency. The currency in which the order is placed with the vendor applies for consignment withdrawals.

• It is possible to determine period-specific consignment prices.

• The consignment price can be specified in any unit of measure. The conversion factor is stored in the info record.

• Using consignment info records, the enterprise can make use of other condition functions used in Purchasing, such as discounts and price quantity scales.

• Consignment stocks of the same material from different vendors can be managed independently from one another and at the price of the individual vendors.

Consignment stocks are not valuated. When the material is withdrawn, it is valuated at the price of the respective vendor.

• A consignment material can be allocated to one of three stock types:

--> Unrestricted-use stock

--> Quality inspection stock

--> Blocked stock

It can be possible to make transfer postings between these three stock types. Withdrawals can only be posted from unrestricted stock, however.

[Consignment Process Training Material|http://www.sapdb.info/wp-content/uploads/2008/11/consignment-procedure.pdf]

However, I tried to provide related materials/ information, Its impossible to Cover Basic-Settings/ knowledge, in theory.

Best Regards,

Amit

Note: Few more references -

[Processing Consignment Orders in ERP|http://esoadocu.sap.com/socoview(bD1lbiZjPTAwMSZkPW1pbg==)/render.asp?packageid=DBBB6D8AA3B382F191E0000F20F64781&id=F5E40D4186867001E10000000A114AB6]

[Consignment Process - Pick-up and Return|http://www.sap-basis-abap.com/sd/consignment-pickup-and-consignment-return-process.htm]

[Consignment Stock Status|http://www4.turbos-bwauto.de/sap/its/mimes/mbw1_PU1/60/EN/info/docu_mbw1.html]

[Former Member]

thanks, for sharing the knowledge.

[Lakshmipathi]

Assuming that you are asking about consignment process from SD side, I give below a brief note for your questions.

What is Consignment Stock?

Those stocks that are moved from unrestricted to special (warehouse) stock are called consignment stock which cannot be transferred to alternate customer

How to create Consignment Stock?

In consignment process, four stages are there. They are consignment fillup, consignment issue, consignment pickup and consignment return.

In the first stage, you create consignment stock. That is you would be moving the stock from unrestricted to your warehouse via 631 movement type

How to check Consignment Stock?

There are standard TCodes like MMBE, MB5B through which you can check the consignment stock

How Cosignment Process gets configured in System?

Check this WIKI for consignment process configuration

[Consignment Process|https://www.sdn.sap.com/irj/scn/wiki?path=/display/erplo/consignment+process]

thanks

G. Lakshmipathi

[Former Member]

Hi,

Consignment stocks are special stock. They are two types of consignment, vendor or customer related.

For details on consignment refer the link below

http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b8f4c43ad11d189410000e829fbbd/frameset.htm

For details regarding customer consignment refer the link

http://help.sap.com/saphelp_47x200/helpdata/en/4c/420a10470a11d1894a0000e8323352/frameset.htm

Hope this helps.

Regards

Anand.