Consignment Process
Whenever company launch the new material or slow-moving items or exhibition sale
Dumping the stocks at customer place and keeping ownership with the company and company will
deliver the goods to customer without rising invoice. When our customer sold the goods to their end
customer then company will raise invoice to our customer / end customers
We have four steps in Consignment process.
Consignment fill up.
Consignment issue.
Consignment return.
Consignment picks up.
[Link] Fill up
Consignment fill up is just dumping the stock at customer place without transferring ownership and
without raising invoice
Order type-- CF /KB
Item category-- KBN
Schedule line -- E1
(631) movement type the effect of 631 movement type is:
i). It will reduce the stock from unrestricted stocks and stock will be added to consignment stock.
ii). No inventory accounting document and accounting document will not generate because CF
process is not relevant for billing.
2. Consignment Issue
When our customer sold the goods to their end customer then our customer informs the same to
company. Then company will do consignment issue process.
Order type-- CI /KE
Item category—KEN
KEN special stock indicator ‘W’ is while doing delivery system considers consignment stock
Schedule line – C1
(633) Movement type
The effect of 633 movement type is:
i). Stocks will be reduced from consignment stocks.
ii). Inventory accounting document will generate and accounting entry will generate
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+91 8121317965
COGS A/c.......Dr. To,
Inventory A/c ......Cr.
[Link] returns
When end customer returns the goods to our customer, then our customer will inform the same to
company, then company will do consignment return.
Order type—CONR /KR
Item category—KRN
KRN special stock indicator ‘W’ is while doing delivery system considers consignment stock
Schedule line – D0
(634) movement type
The effect of 634 movement type is:
i). The stock will be added to consignment stock.
ii). Inventory accounting document will be generated and accounting entry is
Inventory A/c ......Dr.
To. COGS A/c.... Cr.
[Link] Pick Up
If our customer requesting take back materials then company will do consignment pick up.
Order type—CP /KA
Item category-- KAN
Schedule line – F1
(632) The effect of 632 movement type is:
i). Stock will be reduced from consignment stock and add to unrestricted stock.
ii). No Inventory accounting document and accounting document will not generate because CF
process is not relevant for billing.
Scenario 1: Sold to party will not change, only SH, BP and PY we will change as a End customer when
we are doing consignment issue
Scenario 2: when we are doing consignment issue with reference of consignment fill up, we will
remove our customer and we will assign End customer
New Movement type – Z63
Scenario 3- If you want create consignment pickup with reference of consignment fill up, in item
category compilation rule has to be “Blank”
Your’s yuga SAP Institute [Link]
[Link]@[Link] info@[Link]
+91 8121317965