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Consignment Process: Goods are delivered to the customer but remain the property of the company until they

are actually used. All requirements transferred from consignment sales orders to MRP are transferred as individual requirements. Regardless of what checking group you set on material master. Customer consignment location is rep by special stock location within the plant and tracked separately by special stock indicator W-Customer consignment stock. Consignment fill up (Send materials to customer consignment) KB KBN E1 631 AC TOR CF- Outbound delivery- Goods Issue Goods issue set up special stock ay customer location 631 - @ GI, posts stock inot special consignment category in delivering plants stock for that particular customer and material. Consignment Issue (issue materials from customer consignment to the customer). Materials issued from Cons Stock. KE KEN C1 633 AC TOR Special Stock to consume from special stock CI- Outbound delivery Goods Issue Billing document. During goods issue, plant stock as well as special stock gets reduced. Consignment Return(return materials from customer ownership to customer consignment) KR KRN DO 634 NAC NTOR special stockActually customer return and not pick up of your own inventory from consignment location. Consignment return returns delivery- goods receipt Credit memo Consignment Pick up(pickup consignment stock and move it to plant stock) - KA KAN FO 632 AC TOR NO Special Stock Consignment pick up returns delivery- goods receipt 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 customer consignment stock (as seen here) to see if there is an available quantity. The item category has a special stock indicator that is used to indicate that the material being controlled must be controlled as special stock. For consignment, the special stock indicator used is a W. The movement type associated with the transaction checks for available consignment stock at the consignees site.

Special Stock Partner: If the consignment stocks are not managed by the sold-to party but by a central office, you can use the partner function for special stock partner.

carrying out consignment stock processing by means of a third party rather than the customer. This means you can manage all special stock under one partner It makes sense to use the special stock partner if your customer is using decentralized order processing but manages consignment stock centrally.

Inventory Management Using the Special Stock Partner If you want to process your consignment goods using a special stock partner, proceed as follows: 1. Create a customer master record for the special stock partner (account groups 0001 and DEBI are defined for this purpose in the standard system). 2. Enter the special stock partner in the relevant customer master record on the partner screen using the partner function SB. When you create an order for this customer, the system automatically proposes the partner function SB in the document header and the document items. Consignment goods which have been entered in a consignment fill-up are always posted to the stock of the special stock partner when goods issue is carried out. You can also enter the partner function SB manually in the document header or in the relevant items if a special stock partner is required and is not proposed from the customer master record. If a special stock partner does not exist in the document header, inventory management is carried out using the sold-to party. Consignment Fill up: If special stock does not yet exist in your inventory for the customer (or special stock partner), the system creates it when goods issue is posted The relevant quantity is removed from regular inventory in your plant and is added to the special stock for the customer. The total valuated stock for the plant remains the same. The transaction is not relevant for pricing since the consignment stock remains the property of your company.

Consignment issue: When goods issue is posted, the relevant quantity is deducted from both the customers special stock and your own total valuated stock. The transaction is relevant for pricing since the goods now become the property of the customer.

Consgnemnt pick up: When goods issue is posted, the relevant quantity is deducted from th e customers special stock and is added back into your regular stock at the plant where the goods are returned. Your total valuated stock remains the same since the returned stock was regarded as part of your own inventory even while it was at the customers premises.

Consignment return: When goods issue is posted, the relevant quantity is added to the customers special stock at the plant where the goods are returned Since the ownership of the goods is passed from the customer back to your company, the transaction is relevant for billing. In this case, the customer receives a credit memo for the returned goods

A special stock partner is a partner that is assigned to the customer master record in the sales order. This partner need not be the sold to ,ship to, bill to or even payer. However, this partner may be the partner who actually consumes the materials. For example, should a large organiztion have a central depot where all consignment stock goes, then the consignment stock is shipped directly to each customers plant in the system as a partner. For both returnable packaging and consignment stock, you can have special stock partners. You must first create a new customer for them using the same account group as if you were creating a sold to party. One must then assign these special stock partners to the relevant sold to parties customer master records. When materials are consumed by the special stock partner, should there by any consignment stock or returnable packaging, the system automatically picks up the special stock partner and records the stock in the system as being stored at their site.