how to manage customer supplied materials in own warehouse

[Former Member]

Hi Experts,

We have a scenario where the customer supply some material to us which will store in our own warehouse and dispatch material to ship to parties after received customer confirmation.

Key points :

1. Maintain customer material stock in self warehouse.

2. Charge from customer for transportation of material from Plant to self warehouse.

3. Charge from customer for handling services for dispatch material from self warehouse to various stations.

can you please let me know how to map this scenario in SAP where we should mange the materials that are supplied by our customers which needs to be supply to further ship to parties after received customer confirmation

Thanks

Suresh Kumar

[phanikumar_v3]

""""1. Received material from customer plant to our warehouse through delivery for that we               take transportation charge from customer. We hire vehicles for transportation service.

2.  We dispatch material as per customer order and take handling charge for that from customer. We hire vendor for provide handling services.""""

Dear Suresh--when you are receiving goods from another person to your ware house--this another person has to be VENDOR or CUSTOMER.

If he is customer: might be returned goods--so parent sales order will exist here.

If he is vendor: Both of the above will not be applicable.

As per your first point --you collect the fee for vehicles---ask your client how currently they are doing this???

Who is the actual owner for the stock lying at your ware house??

For your second point--have you configured SD pricing route???

Also your explanation of ''''''Regarding customer excise we are not aware that how they handle it and it is not effected to our business""""

Very surprising reply--as a consultant you should be aware of this.

By the way are you an SD consultant or MM consultant???

Have you tried Vendor consignments as suggested by Mr Vemuri???

Pl update...

Phanikumar

[Lakshmipathi]

Answer the following:-

1. Whether your client are a manufacturer-seller or trader-seller?
2. How about the inventory of customer supplied product (Valuated or non-valuated) ?
3. Through which movement type, it would be inwarded?
4. Is further process being done on such of those products?
5. Are the customer supplied product sold to alternate customer or within their own branches?
6. How tax and duty are being handled currently?

G. Lakshmipathi

[Former Member]

1. Our client are a manufacturer-seller.

2. Inventory of customer supplied product is non-valuated.

3. Material is in-warded through delivery.

4. No further process being done on such of those products just keep in stock and wait for      customer order for further dispatch.

5. Customer supplied product sold to alternate customer or within their own branches also.

6. We provide our services so we charge service tax on handling service from customer.

Thanks

Suresh Kumar

[Former Member]

can someone please through some light on this issue. Any suggestion would be of great help.

[Lakshmipathi]

Our client are a manufacturer-seller

If your client are operating the business from India, how excise duty is addressed currently.  When they inward the material, duty has to be considered for those products and similarly, when they sell the products, duty has to be levied.

When selling the customer supplied product, whatever your client would like to charge can be maintained as a condition record based on which, system would populate the price accordingly.  Similarly, for service charge, have a separate condition type where you can maintain different scales to charge based on the number of days the material is stored.

G. Lakshmipathi

[Former Member]

Regarding customer excise we are not aware that how they handle it and it is not effected to our business.

Customer is direct selling his material he just dispatch material from our warehouse which we store earlier. Service charge can be handle by condition types. But i am need guideline about inbound material which we received through our self delivery and shipment. I want to received material with sale order OR inbound delivery but system not allowed to me create inbound delivery with out PO and as i explain my process there are no any PO for me. So please advise to me process that how i received material through delivery and dispatch it again.

Suresh Kumar

[Former Member]

can someone please through some light on this issue. Any suggestion would be of great help.

[Lakshmipathi]

Please try to understand only based on certain assumptions and understanding from your post, you got some suggestions and each and every time, you came out with different explanations which is very difficult from members point of view.

If you want to approach in a right direction, you have to explain what efforts you have put in so far and where you are not able to proceed further.  Had you given a clear cut requirement in your initial post, you would have got couple of suggestions but since you have not given that, members are not able to understand and that is the reason, nobody is willing to give.

As I already indicated, please explain what exactly the client requirement is, what configuration / customization is made in SAP and what are the issues you face when testing.

G. Lakshmipathi

[Former Member]

My business process is : -

1. Received material from customer plant to our warehouse through delivery for that we                         take transportation charge from customer. We hire vehicles for transportation service.

2.  We dispatch material as per customer order and take handling charge for that from customer. We hire vendor for provide handling services.

Business mapping in SAP : -

1. I want to received material with sale order OR inbound delivery but system not allowed to me create inbound delivery with out PO and as i explain my process there are no any PO. So can i received material through return sale order process or any other best way is exist to handle this.

I want to know best way for received material as per my business process.

Thanks

Suresh Kumar

[former_member183501]

Why do you not receive the Material from your supplier through PO.In standard process you should create PO & Once stock is unloaded in warehouse then do the MIGO & if there would be any difference then make a comparison sheet & correct it with transfer posting  rather than doing Inbound Delivery with reference to Sales Order .

I hope it will help.

Regards

Kamlesh

[Former Member]

Thanks for reply.

As i explain that we received material through delivery from customer which is non-valuated for us and we make invoice to customer on base of delivery for transportation service so that's why i plan to handle this through SD process. Is this way is best or other option available for handle this.

[former_member183501]

1. Received material from customer plant to our warehouse through delivery for that we                         take transportation charge from customer. We hire vehicles for transportation service.

Please make sure you receive Material from customer or from Vendor .

Please follow what suggested by Respected .

I think PO process in case Inbound Material will be best for business process.

Kamlesh

[former_member186385]

Hi,

you cannot receive material from Customer as per standard

you have to create the customer as vendor also and follow MM process such as Vendor consignment process instead of SD route

Vendor consignment will answer all you questions

[Former Member]

But confusion about provided services like transportation and handling service which we provide to customer.

We have also hire vendor for transportation & handling service.

Thanks

Suresh Kumar