SAP Consignment process - Explained Step by Step https://www.veonconsulting.

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Examples of SAP Consignment process

in real life  Quick
Contact
#1. Consider an example of selling on eBay where
consignment process is being followed. In this Harry is an
eBay seller and Tom is a trading assistant. Now Harry Name *
uses Tom to sell his bicycle. Tom sells the bicycle for $80.
Tom gives Harry $40 and keeps remaining $40 as an
income. Tom will bear shipping charges etc. Until the Email *
bicycle has been sold Tom will not pay to John. Thus the
process of consignment takes place. In this example,
Harry is a company and Tom is a customer in SAP.
Skype ID

#2. To give another example, lets say Sarah owns a

mobile store in New York. She needs to display and
maintain stock of latest models to be able to generate Services *
sales. However instead of buying and keeping the items
on display, she signs up a contract with Samsung and
Apple. As per this contract, she will be supplied with 50 Requirements *
handsets of various models from Samsung and Apple
each. She does not need to pay anything for the same.
However, periodically of�cials from the company will visit
the store and count the number of handsets left in stock.
For example, if Samsung of�cial �nd that there are only
32 handsets left, they will invoice Sarah for 18 handsets
which were sold in this period.

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SAP Consignment process - Explained Step by Step https://www.veonconsulting.com/consignment-process-in-sap/

consignment process.
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1. Consignment Fill-up
2. Consignment Issue
3. Consignment Return
4. Consignment Pickup

Consignment Fill-up

It is a process in which products are �lling up at the

customer site from company warehouse but the
owner of the stock is the company itself. Sales order
type for consignment �ll-up is CF. The following are
the steps to perform consignment �ll-up in SAP.

Step 1:

Enter transaction code VA01 in SD Master Data

Screen.

Step 2:

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Step 3:

Enter sold-to-party, ship-to-party, and PO number.

Enter Material and quantity of a product.
Click on Save.
In our example, sold-to-party is 1000, ship-to-party is
1000, PO number is 50, material is R-1140, and
quantity is 20.

The following message will be displayed.

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SAP Consignment process - Explained Step by Step https://www.veonconsulting.com/consignment-process-in-sap/

in SAP.
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Step 1

Enter transaction code VA01 in SD Master Data

Screen.
Enter order type as CI, sales organization,
distribution channel, and division.
In our example sales organization is 1000,
distribution channel is 10, and division is 00.

Step 2:

Enter sold-to-party, ship-to-party, and PO number.

Enter Material and quantity of a product.
Click on Save.
In our example, sold-to-party is 1000, ship-to-party is
1000, PO number is 50, material is R-1140, and
quantity is 20.

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Consignment Return

The customer can return the product due to damage,

poor quality, expiry to the company. This is called as
Consignment return. Sales order type for
consignment return is CONR. The following are the
steps to perform consignment return in SAP.

Step 1:

Enter transaction code VA01 in SD Master Data

Screen.
Enter order type as CONR, sales organization,
distribution channel, and division.
In our example sales organization is 1000,
distribution channel is 10, and division is 00.

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In our example, sold-to-party is 1000, ship-to-party is

1000, PO number is 50, material is R-1140, and
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quantity is 20.

The following message will be displayed.

Consignment Pickup

When a customer requests the company to take back

the damaged or poor quality products, then the
company will take back the products from customer
warehouse. This is called as Consignment pickup.
Sales order type for consignment pickup is CP. The
following are the steps to perform consignment
pickup in SAP.

Step 1:

Enter transaction code VA01 in SD Master Data

Screen.
Enter order type as CP, sales organization,

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Step 2:

Enter sold-to-party, ship-to-party, and PO number.

Enter Material and quantity of a product.
Select Order Reason as Returns from drop-down.
Click on Save.
In our example, sold-to-party is 1000, ship-to-party is
1000, PO number is 50, material is R-1140, and
quantity is 20.

The following message will be displayed.

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