SAP SD - Special Business Process

In SAP Sales and Distribution module, along with the processing of normal sales orders, you can also create special business processes like configurable products, items manufactured on order, etc.

Consignments Processing

Consignments are known as products, which are owned by your company and are located at the client location. It is not required for the customer to pay for these goods, until they are moved from the consignment stock. The customers can also return the products in consignment stock, which are not required.

Key Features of Consignment Stock

The goods in a consignment stock can be accessed by the customer at any time.
Consignment goods are stored by the customers at their warehouse.
Customer has to only pay for goods, which are removed from the stock and only for the quantity taken.

As the consignment stock is still a part of company’s valuable stock, so there is a need to manage this in the system. You must manage the consignment stock separately, so that company should be aware, which stock is available at the customer location. This should be managed separately for each customer.

For an organization, consignment stock is managed as a special stock in inventory and this helps you to track returnable goods from the customer. Consignment stock management includes four key activities in the system, which are −

Creating a Consignment Fill-Up (Stock is fill up at warehouse).
Creating Consignment Issue (Stock issued from warehouse).
Creating a Consignment Pick-Up (Stock return to manufacturer).
Displaying Consignment Returns (Stock return from customer).

Creating a Consignment Fill-up

In this, stock is stored at the customer location and owned by the company. This is called Consignment fill up (CF) and sales order –KB is used for this.

T-Code: VA01