Consignment Sales
Over View:
Consignment stock is the stock which is dumped at customer location but the ownership of the stock
remains company only. Usually this kind of scenario takes place for slow moving items, newly lunched
products and sometimes to meet the sales target of company in month ends or year ends and lastly there
could be another scenario when there is a space constraint in the company.
Customer will pay only for the stock he buys.
Consignment Sales is classified into FOUR types.
Sales Item Schedule line Movement
Process Type doc type category Category Type
Consignment Fill-up CF KBN E1 631
Consignment Issue CI KEN C1 633
Consignment Returns CONR KRN D0 634
Consignment Pick-up CP KAN F1 632
Consignment Fill-Up
In this process we only dump the stock at customer location.
Process steps Order->Delivery & PGI – No Invoice
Configuration Settings:
Document type VOV8-CF
Item Category- VOV7- KBN
Schedule line category- VOV6- E1
Note: the above all three are standard settings. You can define new Z documents, item category &
Schedule line category by copying the standard ones.
Along with the above you also need to make sure VOV4,VOV5 and copy controls.
VOV4
VOV5
Maintain copy control -> VTLA->(CF-LF-KBN)
Test Results:
Step1: Create a Sales Order in t code VA01: document type CF
Before doing delivery keep the stock in the above material in T code MB1C
After stock posting
Step2: Create Delivery in VL01N:
Do picking and PGI.
After doing PGI please check the stock in MMBE
MB58 also will be useful to check the customer consignment stock view.
No Invoice
Document flow:
2nd Process: Consignment Issue: Order->Delivery &PGI->Invoice
Configuration steps:
Sales Document Type: CI- VOV8
Item Category: VOV7- KEN
Schedule line Category: VOV6
Along with the above also need to make sure VOV4,VOV5 and copy controls.
VOV4
VOV5
Copy control- VTLA(CI-LF-KEN) & VTFL(LF-F2-KEN)
In this process, customer consume the consignment stock hence we bill the customer.
Test Results:
Step1: Create a Sales Order ->VA01- Sales Order type is – CI
It’s relevant for pricing and billing.
Step2: Create Outbound Delivery in t code - VL01N
Note: After PGI system will reduce the stock from special stock (customer consignment)
It is not relevant for pricking because stock is at customer location
Now check the MMBE
You can observe system has reduced the special stock.
Step3: Create Invoice in t code VF01
Document flow:
3rd Process: Consignment Returns:
Process flow: Consign Return Order-Return Delivery-Return Invoice
Configuration Steps:
Sales document type VOV8- CONR
Item Category: VOV7- KRN
Schedule Line Category: VOV6
Along with the above settings, also need to make sure VOV4,VOV5 and copy control
VOV4
VOV5
Copy control: VTLA ( CONR-LR-KRN) & VTFA ( CONR-RE-KRN)
In this process: Our customer usually sells the stock end customer-> let us assume end customer returns
the stock (because the stock is expired) to our customer then our customer will inform to our company
through email or by phone to take the stock back for that quantity we will create Credit for Returns…
Here the return stock is added to customer consignment stock (because the end customer is returning to
our customer). In SAP control is in KRN-> Special stock indicatory W
Test Results:
Step1: Create a Consignment Return Order – VA01-CONR
Since it is return order we need to maintain order reason (reporting purpose) why customer is returning
the stock, also need to maintain the billing block which is needed because before giving credit some
manager has to approve it.
Step2: Create Delivery: VL01N:
In this step it is not relevant for picking and do PGR
Now check the stock level in MMBE: you will observe that special stock is added. Previously it was 5.
Now it is increased to 8.
Step3: Crate Credit for Returns: VF01:
Before creating invoice first remove the billing block (it is nothing but the approval manager is approving
it)
Its order related invoice:
4th Process: Consignment Pick-Up
In this process: whatever the left quantity with our customer will pick it back.
Process steps: Order->Return Delivery->PGR- NO Invoice
Configuration Steps:
Sales document type: VOV8- CP
Item Category- VOV7- KAN
It is almost similar like Consignment Fill-up
Schedule Line Category- VOV6
Along with the above steps, also required to maintain VOV4,VOV5 and copy control
VOV4:
VOV5:
Copy Control: VTLA(CP-LR-KAN)
Note: you will find two types of schedule line categories in consignment sales. E1/E0, C1/C0, D0 and
F1/F0 : the difference is 0 is without availability check and 1 is with availability check.
Step1: Create Consignment Pick-Up Order: VA01-CP
Currently special stock is 8 : this stock I wanted to pick it back.
It is not relevant for pricing and billing
Step2: create return delivery: VL01N
After doing PGR, just check the stock over view in MMBE & you can observe the special stock is removed
and added to plant stock (un restricted stock type).
Now check the MMBE stock over view: the special stock is removed and added to Plant stock.
No Invoice:
Document flow:
