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.
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.
Step 1)
1. Enter T-code VA01 in command field.
2. Enter order type CI (Consignment issue).
3. Enter Sales area data in Organizational data block.
Step 2)
1. Enter Sold-To party / Ship-to Party / PO number.
2. Enter PO Date.
3. Enter Material and ordered quantity.
Step 3) Click on save button.
Consignment Return
If customer return product due to damage ,poor quality, expiry, then this process is called
consignment return (CONR). Consignment return happens after consignment issue. i.e customer
can return Consignment product, the product are issued to customer by Consignment issue
process. Sales order type for consignment issue is – KA.
In consignment Return Order, Delivery, Invoices and Credit for return take place.
Step 1)
1. Enter T-code VA01 in command field.
2. Enter order type CONR(Consignment Returns).
3. Enter Sales area data in Organizational Data block.
Step 2)
1. Enter Sold-to Party / Ship-to party.
2. Enter Order reason.
3. Enter Material and ordered quantity.
Step 3) Click on save button.
Consignment Pickup
When a customer request to the company ,to take back the product, the company will pack this
product from customer sites, this process is known as Consignment Pickup (CP). In consignment
pickup process , product are not issued to customer and only stored at customer warehouse as
consignment stock. Sales order type for consignment issue is – KR.
In consignment Pickup Order,Return Delivery takes place.
Step 1)
1. Enter T-code VA01 in command field.
2. Enter Order type CP(Consignment pickup).
3. Enter Sales Area data in Organizational Data block.
Step 2)
1. Enter Sold-to Party / Ship-to party.
2. Enter Order reason.
3. Enter Material and ordered quantity.
Step 3) Click on save button.
Summary
Here are the Sales order Types
Consignment fillup (CF) = KB
Consignment Issue (CI) = KE
Consignment Returns (CONR) = KR
Consignment pickup (CP) = KA