Consignment Business Process
Consignment is the business process where by the business appoints consignment agent on behalf of business.
Consignment agents sell the materials to the end customer (may be on commission basis).
Consignment agent receives the material and he sells the material to the end customer.
Consignment agent has the right to return the materials if he does not want to sell the remaining goods.
Business treats the consignment stock as special stock (indicated in item category).
We can map the business process of consignment in 4 phases.
(1) Consignment fill – up.
(2) Consignment issue.
(3) Consignment returns
(4) Consignment pick – up.
Consignment Fill – up
Document type = KB
The consignment fill – up stage/phase business fills the stock with consignment agent.
This phase will have only delivery.
Item category = KBN
Schedule lines = EI (stock transferred to consignment/order without acknowledgement)
Procurement tab Movement type 631
VOV7 of KBN:
NIL
VOV6 of EI:
Movement type [631] = Goods issue – Consignment: Lending
Item relevant for delivery
TOR
Availability
NOTE: When a consignment fill – up is carried out, the system checks the available quantity of stock in the
delivering plant to see if this quantity can be met. When the system proceeds with a consignment issue or
consignment pick – up, the system checks the stock represented at the customer’s site to see if there is an available
quantity.
Consignment Issue
Document type KE
In this process consignment agent sells the goods to the end customer.
Movement type = 633
Schedule line category [C1] = Consignment issue without availability check
VOV7 of KEN:
Special stock [W]
Billing relevance [A]
Pricing [X]
VOV6 of C1:
Movement type [633] = Customer consignment
Item relevant for delivery
Requirement/Assembly (TOR)
Availability
Consignment Returns
Document type KR
As end customer returns the damaged goods to the consignment agent.
Consignment agent has to receive those damaged materials.
Item category = KRN
Schedule line category [D0] = Consignment returns
Movement type = 634
VOV7 of KRN:
Special stock [W]
Billing relevance [B]
Pricing [X]
VOV6 of D0:
Movement type [634] = Goods receipt customer consignment
Item relevant for delivery
Consignment Pick – up
Document type KA
The consignment agent returns the remaining goods to the business. So that business has to pick up the stock from
the consignment agent.
Item category = KAN
Movement type = 632
Schedule line category [F1] = Consignment pick – up with availability check.
VOV7 of KAN:
NIL
VOV6 of F1:
Movement type [632] = Goods issue consignment return delivery
Item relevant for delivery
Requirement/Assembly (TOR)
Availability
NOTE: Item categories, Schedule lines, Movement type numbers are very important for INTERVIEW.
The complete consignment process
