SD Consignment Sales Process

Consignment Process is where product are stored at the

customer(Dealer) location but the owner of this product is still
company.
Consignment Sales Process in SAP
The consignment process in SAP standard consists of four small
processes: 
1. Consignment fills up (send materials to customer
consignment). 

Here you have a consignment fill up order and a consignment fill up

delivery. 

2. Consignment issue (issue materials from customer(Dealer)

consignment to the customer)
Here you have a consignment issue order, consignment issue
delivery and a consignment issue invoice. (the flow is very
similar to a normal OR flow, but the materials are issued from
the consignment stock instead of plant stock unrestricted). 

3. Consignment return (return materials from customer

ownership to customer consignment) 
Here you have a consignment return order, consignment return
delivery and a consignment return invoice. (The flow is very
similar to a normal RE flow, but the materials are returned to the
consignment stock instead of plant stock returns). 

4. Consignment pickup (pickup consignment stock and move it to

plant stock)
Here you have a consignment pickup order and a consignment
pickup delivery. 
Note that in consignment fill up and consignment pickup there are no
invoices since there is no change of ownership for the materials. 

How to perform a consignment order

In consignment orders you are allowing the stock to set in your
customer location. Once he informs that he used the stock you will
invoice him. If he returns the stock you will accept the stock to take it
back.
It is defined in 4 steps.
1. Consignment fill up: 
Sales document type is KB/CF
Item category KBN
Schedule line category E1
In this step, you are not invoicing the customer. Document flow is
sales order ---- delivery item category. It will not be relevant for
billing and pricing because you are not charging money for these
goods in this step.
In schedule line category, you will set movement type 631 and set for
availability check and TOR.
 
2. Consignment Issue.
Once the customer informed you that he used all the goods or partial
goods then you will create consignment issue for used goods.
Sales document: KE/CI
Item category: KEN
Schedule line category: C0 or C1
Here you are invoicing the customer (because he used the goods). you
are assigning the delivery document and billing document to the sales
document.
In item category, you are setting relevant for billing, pricing, special
stock.
In schedule line category, your setting is 633movement type, relevant
for availability check and TOR.
 
3. Consignment Return:
Customer found that some goods are damaged or he not able to sold
the goods he want to send it back. That you are creating this
document
Sales document type: KR/CONR
Item category: KRN
Schedule line category: D0
You will assign delivery document and billing to sales document. You
will create return order, return delivery, return billing.
You're setting item category relevant for billing, returns, and pricing,
special stock.
You’re setting schedule line item category: 634 movement type, NO
availability NO TOR.
 
4. Consignment Pick up:
Even if you create the consignment return the goods are not come to
direct to your plant. For that you need to create consignment pick up.
Here the owner ship is not changing so you do not need to create
billing.
Assign return delivery to sales document type
Sales document: KA/CP
Item category: KAN
Schedule line category: F0 and F1
Your setting item category relevant for returns, any schedule line
category relevant for 632-movement type, MRP, availability check,
delivery.