SAP SD Consignment Process

The Scenario –

• Client creates a consignment order for their distributor.
• The consignment stock sits at the distributor location. The distributor sells some of this stock to end customer.
• Client creates an issue order for this quantity, this order has end customer as the ship to as well as bill to parties.
• When the goods are delivered against this order, the consignment stock is reduced.
• Client then creates an invoice for the end customer.

SAP Solution –

• Create Consignment fill up order of type KB with distributor as sold-to, ship-to and bill-to and payer.
• Create delivery for this order and do PGI, which shifts this stock to ‘customer consignment stock” (special stock w).
• Assumption – the master data for the end customer exists in the system and has all mandatory partner functions defined.
• Create a consignment issue order of type KE, which has sold-to as the distributor and ship-to, bill-to as the end customer.
• Create delivery and do the PGI, which reduces the consignment stock.
• Create invoice, which has the end customer as bill-to and the distributor as ‘payer’.