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Consignment goods are goods which are stored at the customer location, but which are owned by your company. The customer is not obliged to pay for these
goods until they remove them from consignment stock. Otherwise, the customer can usually return consignment goods which are not required.
Consignment processing offers the participating partners several advantages. Customers store the consignment goods at their own warehouses. The customer
can access the goods in the consignment warehouse at any time. They are only billed for the goods when they are removed from the warehouse and only for
the actual quantity taken.
Since consignment stocks still form part of your valuated stock, you must manage this stock in your system.
However, consignment stock must be
• Managed separately from the rest of your stock so that you know exactly what stock is stored at the customer location
• Managed separately for each customer
In inventory management, the consignment stock is managed as special stock in your inventory and is assigned to specific customers. This enables you to keep
track of returnable packaging stock by customer.
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.
Consignment Process is where product is stored at the customer location, but the owner of this product is still company. Customer stores the consignment
stock at their own a warehouse. Customer can consume product from warehouse at any time and customer billed for product for quantity consumes. In
Consignment Stock Processing, there are four main transactions in the SAP System, all of which support separate management of stock:
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• Consignment Return (Stock return from customer).
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74
Step 1) Create Consignment Fill Up
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2. Enter Order type CCFU (consignment fill up).
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3. Enter sales area in organizational data.
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Step 2)
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1. Enter PO number.
2. Enter PO Date.
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3. Enter Order Quantity.
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Step 3)
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A message as below is displayed.
Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.
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The underlying goods movement type is a stock transfer. This ensures that when goods issue is posted, consignment special stock is created for the customer
concerned. If special stock of this kind already exists in the delivering plant for this customer, the goods are posted to this special stock.
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1.2. CONSIGNMENT ISSUE
Consignment issue enables the customer to take consignment goods from the special stock for their use or to sell.
Consignment issue involves removing the goods from the special stock and making it the property of the customer.
When the customer removes consignment stock to use or sell, you record the transaction in the system by creating a consignment issue order (order type KE).
As a result, the system carries out the following actions:
• When goods issue is posted, the relevant quantity is deducted from both the customer’s special stock and your own total valuated stock.
• The transaction is relevant for pricing since the goods now become the property of the customer.
Step 1)
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1. Enter order type CCIS (Consignment issue).
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1. Enter all other relevant data and save the order.
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2. Create a delivery as the subsequent document for this sales order and, after picking has been completed successfully, post goods issue.
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3. The goods are then reduced by the relevant quantity in the special stock assigned to the customer. This goods issue also reduces your total stock.
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4. Invoice the delivery which issues the consignment goods
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1.3. CONSIGNMENT RETURN
Consignment returns are used for when your customer wants to return goods to the consignment stock.
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If the customer wishes to claim on consignment goods which have already been issued, you can record this transaction by creating a consignment return order
(order type KR). As a result, the system carries out the following actions:
• When goods issue is posted, the relevant quantity is added to the customer’s 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 custom er
receives a credit memo for the returned goods.
Depending on the settings in Customizing for Sales, you can create consignment returns with direct reference to a consignment issue. The consignment issue
appears in the document flow for the consignment return. This function is not supported in the standard version of the SAP System.
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2. Enter order type CCRE (Consignment Returns).
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Step 2)
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2. Enter Order reason.
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3. Enter Material and ordered quantity.
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Step 3)
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Create a returns delivery for the sales order (the system automatically chooses delivery type LR ). The goods issue posting cancels the goods issue posting
which was carried out when the consignment goods were issued. This posting records the return of the goods to the plant where goods receipt was carried
out.
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Create a credit memo for the consignment return you created in Step 1.
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