Credit management for consignment sale

[Former Member]

Hi,

It is well accepted that in Standard SAP , for consignment sale process credit check is done in Consignment issue level as in this phase material stock is logically got diminished from valuated stock. But business dynamics need some solution with nature of business needs and from that point we need that how the same can be managed with consignment fill up. Consignment fill up is the stage where material is moved from plant gate to reach consignment agent's premises which is geographically may be located far away and this is the phase where user can want the credit check before dispatching more quantity with that of payment have received or with a threshold value of credit limit though the stock is under ownership of plant and that same will be transferred to customer after consignment issue.

now we have configured system in that way, KBN and KEN item category has been configured  perfectly as needed(like credit indicator checked for KBN and unchecked for KEN item category).

But the problem is faced like following way.

Suppose I am doing a transaction of delivery against a consignment fill up order with value of 2 Lakh with that much credit limit and after making the delivery it got updated in FD32 open sales value (2 Lakh) which is correct in this context.

Secondly at the time of consignment issue delivery further open sales value is not updated with 2 Lakh which is also correct(as credit check is inactive as it should not be update the open sales value as 4 Lakh)

Lastly when we are preparing the consignment commercial invoice with reference of consignment issue delivery then after posting 2 lakh got updated in receivables in FD32 which is also correct but at the same time open value should be diminished to zero which is not updating and this is wrong as then credit exposure is calculated wrongly for next transaction. so huge value will be accumulated in open sales value for consigmeet agent and the same cannot be rectified by standard program RVKRED77 like normal customers.

So please explore what may be the solution for the same(may be any configuration setting) or if there any another correction program exists.

Regards

Indranil

[phanikumar_v3]

""""the requirement of credit check at consignment fill up stage as material should be blocked for delivery before vehicle starts from factory gate"""

In this case you can try with delivery block--but why you preferred credit check that to for Consignment fill-up?

In normal Credit active field will be inactive in KBN-but active in KEN(But you are following just reverse--why client wants Credit checks for this requirement can done with a normal delivery block)

Phanikumar

[Former Member]

Dear Mr. Phanikumar,

Normal delivery block set is not the solution here. Please read my query in my first blog in detail and it will be clarified why business needs it. Always  business needs some diversity that's why we need customization. Otherwise there was no need for that.

But any way thanks for your initiative. But thing is not why requirement is reversed, thing is that the requirement is not supported by SAP.

Regards

Indranil

[eduardo_hinojosa]

Hi

First, see note 492831 - Consignment and credit management, it's the standard behavior.

So, I believe you need to use userexits in OVA8. See note 1464839 - How to customize credit control in transaction OVA8 using checks USER 1, USER 2 and USER 3

Regards

Eduardo

[Former Member]

hi Eduardo,

Thanks for your reply. please suggest anyhow open sales value not updated after posting of commercial invoice. If we create the consignment issue with reference to the consignment fill up and then we create delivery from consignment issue and for item category KEN credit check is not active, in this case open sales value not updated. It is correct.

   But after creation of commercial invoice with reference of issue delivery receivables got updated but corresponding sale value which got updated at the time of consignment fill up, is not diminished though there is a document flow updated in VBFA table with this commercial invoice with consignment issue order.

    Thus open sales value is accumulated with a huge value.

Is there any standard program for this rectification like RVRKED77 which update the S067 table.? Or is there any setting? Please explore.

Regards

Indranil

[Lakshmipathi]

At the outset, you have nicely frammed your requirement in such a way one can understand your knowledge in SAP.  Coming to your requirement, since as you rightly pointed out, you were deviating the standard credit management and that is why, system is not updating the value as you were expecting.  This has also been confirmed in note 492831.  So in order to achieve this, as already suggested, you need to try with user exits

G. Lakshmipathi

[Former Member]

Dear Mr. Lakhshmipati,

Thanks for your reply.

I need the input to be given that we are running the credit check with update group 000015 . So in this case S066- OEIKW will not update anytime.

As per note 492831 is declaring that for consignment fill up if the credit indicator is active but the table S066 - OEIKW will not update for open sales value in case of consignment fill up

But we have tested that after creation of the delivery against consignment fill up open sales value updated in FD32 (as item category KBN has set as credit active) and the same figure is coming from the table S067 - OLIKW.

But it is not duplicated with creation of the delivery from consignment issue(as for item catefory KEN this check is inactive) and after creation of the commercial invoice receivable got updated but same value should be cleared from S067 - OLIKW.

You can understand the situation.

Now there can be three aspects of it. Please check my points below and suggest if I am wrong.

1. For update group 000015, this table S067 is updated for delivery of fill up in standard SAP but never adjusted in after that and also there is no standard program for correction. So in this case either we have to forcefully update the table (by exit or by program) though it should not be the practice as there may be some inconsistency or we should discard this process.

2. We have to deactivate the credit check at consignment fill up level and to carry with credit check at consignment issue level as in that case under update group 000015 , after creation of commercial invoice posting receivables got updated with modification of open sales value by diminishing that much value.

3. We have to withdraw the credit check for case of consignment agent.

please suggest if any other aspect keeping in mind that we have to try our best to reach the requirement of credit check at consignment fill up stage as material should be blocked for delivery before vehicle starts from factory gate.

with last effort if there is really no way , so we have to go with standard SAP.

Regards

Indranil

[Former Member]

Dear Mr. Lakhshmipati,

Thanks for your reply.

I need the input to be given that we are running the credit check with update group 000015 . So in this case S066- OEIKW will not update anytime.

As per note 492831 is declaring that for consignment fill up if the credit indicator is active but the table S066 - OEIKW will not update for open sales value in case of consignment fill up

But we have tested that after creation of the delivery against consignment fill up open sales value updated in FD32 (as item category KBN has set as credit active) and the same figure is coming from the table S067 - OLIKW.

But it is not duplicated with creation of the delivery from consignment issue(as for item catefory KEN this check is inactive) and after creation of the commercial invoice receivable got updated but same value should be cleared from S067 - OLIKW.

You can understand the situation.

Now there can be three aspects of it. Please check my points below and suggest if I am wrong.

1. For update group 000015, this table S067 is updated for delivery of fill up in standard SAP but never adjusted in after that and also there is no standard program for correction. So in this case either we have to forcefully update the table (by exit or by program) though it should not be the practice as there may be some inconsistency or we should discard this process.

2. We have to deactivate the credit check at consignment fill up level and to carry with credit check at consignment issue level as in that case under update group 000015 , after creation of commercial invoice posting receivables got updated with modification of open sales value by diminishing that much value.

3. We have to withdraw the credit check for case of consignment agent.

please suggest if any other aspect keeping in mind that we have to try our best to reach the requirement of credit check at consignment fill up stage as material should be blocked for delivery before vehicle starts from factory gate.

with last effort if there is really no way , so we have to go with standard SAP.

Regards

Indranil