1).

Hi Consignment process is basically of four different types Consignment process basically we are doing because there is no confirmed requirement from the customer and we send our stocks to the customer thinking that he will use it so that we can make a sale When a company introduces new products there is no demand for those products so the dealers will not buy it This is one such occasion the company uses this consignment process and sends the goods the dealers on consignment and simultaneously market these products and slowly build the demand from the consumers so that dealers start selling these consignment stocks and the whole cycle goes on and after sometime when these new products's demand is estabilished then the company start practising the normal sale order process Consignment Fillup ---->This means that we are sending goods to our customer say material X say 100 units This remains our vaulated stocks but at customers place (thinking that the customer will with draw something from that qty so that we can make a sale) Since it is our stocks this is not relevent for Commercial billing Consignment Issue ----> If out of this 100 units if the customer withdraws 60 units this is Consignment Issue and this is billable we make commercial billing for this customer for 60 units Consignment Pickup ---->The balance 40 units we take it back through Consignment Pickup and this is not relevent for billing Consignment Returns -----> Out of this 60 units which was sold thro Consignment Issue if your customer returns 5 units that is Consignment Returns and this is billable that is credit note issue When you make a consignment fill up for a customer if you check the stocks in MMBE these 100 units will be in a special heading called customer consignment under that customer's name In this WIKI section of SDN there are some excellent odcumentation on consignment Process and i have pasted herewith one such document for you to read and understand Conginemt process is keeping the stock in customers premises, but until the constomer consumes or sell it, it will be a part of the company. (It is not mandatory that we should stock the consignment stock in the customers premises, we can store it in the company premises too). The consignment process in SAP standard consist of four small processes: Consignment fillup (send materials to customer consignment). Here you have a consignment fillup order and a consignment fillup delivery. Consignment issue (issue materials from customer 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). 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). Consignment pickup (pickup consignment stock and move it to plant stock). Here you have a consignment pickup order and a consignment pickup delivery. Note: In consignment fillup 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 sit 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 Item category KBN shedule line category E1 In this step, you are not invoicing the customer. document flow is sales order ---- delivery item category. It will not be relevent 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 & 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 Item category: KEN shedule 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 relevent for billing, pricing, special stock. In schedule line category, your setting is 633 movement type, relevent for availability check & TOR. 3. Consignment Return: Customer found that some goods are damaged or is not able to sell the goods he would to send it back. Then we need to created the following document to accepts those goods. Sales document type: KR Item category: KRN Shedule line category: D0 Assign delivery document and billing to sales document. Create return order, return delivery, return billing. The settings of item category is relevent for billing, returns, pricing, special stock. The settings of 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 retrun delivery to sales document type. Sales document: KA Item category: KAN schedule line category: F0 & F1

The settings for item category relevent for returns. The settings for shedule line category :- 632 movement type, relevant for MRP, availability check and delivery. Check your plant stock. Stock will increase.

consignment is nothing but vendor maintain stock of material in company premises.Liability of stock remains with vendor unless and until it is removed from consignment stock and posted to warehouse stock

Find detail information given in SAP Help Managing Special Stocks - Vendor Consignment Definition - Stock comprises consignment material belonging to the Vendor that is stored on your premises. When buying goods on consignment, the ordered goods still belong to the vendor, even after delivery. The goods only become the property of your company when you consume them. The quantity consumed (used) is settled with the vendor periodically, for example on a monthly basis. Pricing for Consignment Stocks Before you order a material from a vendor or post goods receipt to consignment stock, you must maintain the consignment price for the vendor. The price is required for material valuation and accounting purposes. If you order consignment from several vendors, the system maintains consignment stock for each vendor since the individual quantities of the material can have different prices. Create Info Records for Consignment Stocks Logistics>Material Management>Purchasing>Master data>Info Record>Create. Enter following information: Vendor Account Number Material Purchasing Organisation (C001) Plant Tick Consignment selection Press enter. The header data screen appears. Click Purch. Organisation Data 1 Enter Standard Order Quantity Enter Price per pricing unit. Save Procurement of Consignment Material This section deals with creating purchase requisitions and purchase orders for consignment

materials. Creating Purchase Requisitions for Consignment Material You enter purchase requisitions for consignment material in exactly the same way as for other materials. However, you must note the following: Enter K in the Item Category for consignment item to ensure the goods receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Logistics>Material Management>Purchasing>Requisition>Create. Enter following information: Document Type NB ITEM CATEGORY K (NOT ACCOUNT ASSIGNMENT !!!!!) Delivery Date Requested delivery date Plant Your plant code Storage location Your store Purchasing Group Your purchasing group Press enter. Enter material code and quantity required. Select line and click Details. Enter fixed vendor at bottom of screen Save Creating Purchase Orders for Consignment Materials You create a purchase order in order to replenish your consignment stores. You now need to couple your requisition that you created to a purchase order Logistics>Material Management>Pruchasing>Purchase Order>Create>Vendor Known. Enter following information: Vendor Account Number Supplier where materials are to be ordered from. Purchasing Organisation C001. Purchasing Group Your Purchasing Organisation. Item Category K. Plant Your plant code Storage location Your store Click : Ref. To PReq (Create with reference to purchase requisition.) Enter purchase requisition number. Enter Select line(s) of purchase requisition to be ordered. Click Adopt + Details Enter until all lines have been accepted.

Save Posting Goods Receipt for Consignment Material Logistics>Material Management>Inventory Management>For Purchase Order. Enter following information. Document Date Posting Date Movement Type 101 Purchase Order Number Plant Storage Location Enter Select lines received. Adopt + Details Enter through all lines to accept it. Save Displaying Consignment Stock You can display the current stock of consignment material by: Displaying the Consignment Stock Report Displaying the Stock Overview Displaying the Vendor Consignment Stock Displaying the Consignment Stock Report. You can display the Consignment Stock Report as follows: Logistics> Customer Functions > MM > Reports-Plant Stock > Special Stock > Vendor Consign Stock Enter the following data: Plant (Compulsory) Material Vendor Storage Location Execute (If all consignment stocks must be displayed, only enter plant code and execute) Displaying the Stock Overview In the stock overview you can display the consignment stock of a material for all vendors. In addition, all the other stock types (for example, own stock) are displayed. You can display the stock overview as follows:

Logistics > Material Management > Inventory Management > Environment > Stock > Stock Overview Enter the following data: Material Plant Storage Location Execute If consignment stock exists, the line Vendor consignment is displayed for the relevant storage location. Select this line to display detailed information on the consignment stock. Displaying the Vendor Consignment Stock This function allows you to display the consignment stocks of more than one material at the same time. You can display Vendor consignment stocks as follows: Logistics > Material Management > Inventory Management > Environment > Consignment > Consignment from Vendor > Stock Enter the following information: Plant Storage Location Vendor (If specific Vendors stock is required) Execute Posting Goods Issues From Consignment Stock This function allows you to withdraw a material from the consignment stores for an account assignment object (for example shrink-wrap to a cost centre). Logistics > Material Management > Inventory Management > Goods Issue Enter the following information: Movement Type 201 Special Stock K Plant Storage Location Enter In the upper part of the screen, enter the account assignment object (for example the cost centre) and the Vendor. The vendor is required so that the system can determine the relevant stock and pricing data. In the lower part of the screen, enter the individual items (material number and quantity). Enter Save After the goods issue, the vendor is due the net value of the goods issue.

Transferring Consignment Material into Own Stock This function allows you to withdraw consignment materials to own stock to be used in production (backflushing). Logistics > Material Management > Inventory Management > Transfer Posting Enter the following information: Movement Type 411 Special Stock K Plant Storage Location Enter In the upper part of the screen, enter the Vendor. Only enter a receiving storage location if the material should be stored in another storage location. In the lower part of the screen, enter the individual items (material number and quantity). Enter Save After the transfer posting, the vendor is due the net value of the transfer.

Settling Consignment Liabilities Removing material from consignment stores of transferring material to your companys own stock results in liabilities towards the vendor. You should settle these liabilities at regular intervals (for example: monthly). Consignment materials are settled without the vendor issuing an invoice, as the vendor company is unable to track withdrawals directly. The vendor can only manage its consignment stock by taking deliveries and payments into account. You can initiate payment for consignment withdrawals using the Invoice Verification application component. Logistics > Material Management > Invoice Verification > Invoice Verification > Further Processing > Settle Consignment/Pipeline Liabilities Enter following information: Company Code 7050 Vendor Account number Plant Document Date This is the date on which the original document was posted. Posting Date This is the date on which the accounting document must be posted to GL. Remove tick for Pipeline, only leaving consignment tick Tick Display at the processing selection Execute You will now see a list of all settlements outstanding for this specific Vendor. In order to settle the liabilities:

 Go back once with the green back button Tick Settle at the processing selection Execute Liabilities will now be settled and posted to the Vendor Account.

. Do the Goods Receipt in MIGO with movement type 101,during this no accounting documents are created, IF u Want transfer the Consignment stock to own stock by using 411 K movement type in MB1B or if u want direct consumption of that material use 201 K movement type in MB1A transaction For Settlement of consignment stock u use MRKO transaction do the settlement for that material

3). The consignment process in SAP standard consist of four small processes:
Consignment fillup (send materials to customer consignment). Here you have a consignment fillup order and a consignment fillup delivery. Consignment issue (issue materials from customer 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). 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). 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 fillup 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 sit 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 Item category KBN shedule line category E1 In this step, you are not invoicing the customer. document flow is sales order ---- delivery item category. It will not be relevent 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 & 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 Item category: KEN shedule line category: C0 or C1 Here you are invoicing the customer(because he used the goods). you are assigning the delivery documnt and billing document to the sales document. In item category, you are setting relevent for billing, pricing, special stock. In schedule line category, your setting is 633 movement type, relevent for availability check & 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 Item category: KRN Shedule line category: D0 You will assign delivery document and billing to sales document. you will create return order, return delivery, return billing. Your setting item category relevent for billing, returns, pricing, special stock. Your 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 retrun delivery to sales document type. Sales document: KA Item category: KAN schedule line category: F0 & F1 Your setting item category relevent for returns. any shedule line category relevent for 632 movement type, MRP, availability check, delivery. Now you check your plant stock. Stock will increase.