The consignment process in SAP SD:,
This includes creating orders, delivery documents, and invoices to manage the transfer of goods
between a company and a customer.
Steps in the consignment process
Consignment fill-up: Stock is filled up at the warehouse
Consignment issue: Goods are removed from the warehouse and become the property of the customer
Consignment return: Goods are returned to the manufacturer by the customer
Consignment pickup: Goods are returned to the manufacturer from the customer
Steps in the consignment issue process
1. Create a consignment issue order with the order type KE and the item category KEN
2. Create an outbound delivery
3. Perform PGI
4. Reduce the consignment stock at the distributor
5. Create an invoice against the distributor
Considerations
The company owns the consignment goods, but the customer is not responsible for paying for them until they are removed from consignment stock
The price of the material for the vendor must be maintained in a purchasing info record
but the owner of this product is still company. Customer stores the and customer billed for product for quantity consumes.
consignment stock at their own warehouse. Customer can consume product from warehouse at any time
Consignment Sale Sales Order Delivery PGI Billing Accounting Stk at cust's loca
Consignment Fillup - KB 1000 1000 1000 NA NA 1000
Consignment Issue - KE 200 200 200 200 200 800
800 800 800 800 800 200
PGR
Consignment Return 100 100 100 100 100 100
Consignment Pickup 100 100 100 NA NA
Fillup Issue Return Pickup
Order Type 48 KB 45 KE KR KA
Item Category KBN KEN KRN KAN
Schedule line E0 C0 D0 F0
Delivery Block NA NA NA NA
Billing Block NA NA NA NA
Order Reason NA NA Yes Yes
Delivery Type 80000028 LF LF LR LR
Movement Type 631 633 634 632
Billing Type (ZF8) F2 F2
Related Billing Delivery Related Delivery Related
Accounting / Journal Entries Cust Dr+ Cust Cr-
Sale Rev Cr- Sale Rev Dr
Tax Ac Cr- Tax Ac Dr
HP Consignment Issue 158 has been saved.
Outbound Delivery 80000108 saved, material document 4900000900 created
Invoice Document 90000219 has been saved.