Consignment Process

All About Consignment Process in SAP SD

Consignment Process is where product are 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 actually quantity consumes. In Consignment Stock Processing, there are four main transactions in the SAP System, all of which support separate management of stock:

• Consignment Fill-Up (Stock Fill up at warehouse).
• Consignment Issue (Stock issue from warehouse).
• Consignment Return (Stock return from customer).
• Consignment Pickup (Stock return to manufacture).

Consignment Fill-Up

Consignment Fill-Up is a process, in which  company store product at customer sites and still company  is the owner of this product. This process is  known as consignment fill up (CF). Sales order type for consignment filling is – KB.

In consignment fill up only order and delivery takes place.

Step 1) Create Consignment Fill Up

1. Enter T-code VA01 in the command field.
2. Enter Order type CF(consignment fill up).
3. Enter sales area in organizational data.

Click on save  button.

A message "Delivery 80016014" has been saved.

Step 2)

1. Enter PO number.
2. Enter PO Date.
3. Enter Order Quantity.

Step 3)

Click on save  button.

A message as below is displayed.

Consignment Issue

The customer can access product at any time to sell or their use  from  their warehouse and company will issue invoices for only accessed product,  and this invoices known as the consignment issue  (CI). Sales order type for consignment issue is – KE.

In consignment Issue Order, Delivery and Invoices take place.