Consignment Fill-Up - CF

1. The business delivers stock to a customer on consignment. This process is called consignment fill-up. Its uses
the document category C (VOV8) and a different number range to treat the consignment sales process different from
the standard sales cycle.
2. The consignment fill-up uses the standard sales document type KB/CF, delivery type LF; no billing document
type or invoice is relevant at this stage as fill-up is not considered as a sale.
3. The item category for consignment fill-up is KBN, (VOV7); schedule line category E1/E0; Movement type
(631) is the key that at the time of goods issue, posts the stock into a special consignment category in the delivering
plants stock for that particular customer and material.
4. The most important thing to note at this stage is that CF doesnt have PRICING, BILLING, CREDIT CHECK,
COST DETERMINATION, SPECIAL STOCK.
5. Copy control must be set at item and schedule line levels. And a delivery block could be set for sales document
KB (VOV8)
6. After customising entries, create a consignment fill-up order (VA01 doc.type CF) followed by delivery and
goods issue. (no billing is done for fill-up).
7.

VA01(CF) VL01N (DELIVERY LIST) LT03 (TRANSFER ORDER) VL02N (PGI).

8.

Note: No billing is done at this stage.

9.

To view the stock on consignment for this customer go to MB58 or MMBE

10. An automatic credit check is done on the open items with consignee that is unpaid. But a manual credit check
should be done on consignee before every consignment fill up is done.
11. When a consignment fill up is carried out, the system checks the available quantity of stock in the delivering
plant to see if this quantity can be met .when the system proceeds with a consignment issue or consignment
pick up, the system checks the stock represented at the customers site to see if there is an available quantity left.
12. Once the consignment fill up is done, the customer may consume the material or sell them. He then informs us
about the number of units consumed.
Consignment Issue CI
1. In the consignment process, the customer only pays when he sells or consumes the materials. The business
issues the sale to consignee via an order type CI (or) KE. This is again a standard sales document type with category
C. Delivery type LF, delivery related billing type F2
2. Order type CI; Standard item category KEN, Schedule line category C1/C0 (which is relevant for delivery);
movement type 633.
3. In case of consignment CI PRICING, COST DETERMINATION, BILLING, CREDIT CHECK, SPECIAL STOCK
are taken into consideration.
4.

For consignment special stock indicator is W.

5. VA01 (CI) VL01N (OUTBOUND DELIVERY YOU CAN DO PGI HERE ITSELF) VF01 for the quantity
consumed. (INVOICE F2)
6. Once PGI is posted, the consumed stock is reflected in the consignment stock, which can viewed either in MB58
or MMBE.
Consignment Return CR
1. The consignment return is sales process flow that represents faulty materials or the product consumed or sold
by the consignee. This process should not be confused with the pick up of materials.
2. The consignee puts the faulty stock back into the consignment stock and requests either a credit note or free of
charge subsequent delivery in return. It is to be noted that faulty items are not returned to main stock at the plant,
instead they are returned to the consignment stock to make balanced inward and outward movement of stocks.
3. The sales document category is H and a returns document should always have different number range for the
visibility of returned items.
4. It is also suggested to promote a special shipping condition for returns process that causes a special shipping
point that can used only to process return deliveries. In addition to that, all returns documents can be made to have
mandatory reference procedure from the billing document for a clear visibility. (M in case of reference from billing)
5. Do not forget to assign to reference document in the copying control rules and make sure you select the update
document flow in the copying control rules.
6. sales document type CR; delivery type LR (though the actual stock is added to the consignment stock and
not the actual stock in plant, the consignee will call to pick up the unused faulty goods and simply consume the rest of
the material, and thus the consignment stock will physically increase); billing type (order related billing relevance in
VOV7) RE ; item category KRN ; schedule line category D0 (no MRP and availability check required for stock
returns as we are receiving stock back into our plant); movement type 634; special stock indicator W
7. transaction flow = VA01 (CR) VL01N ( post goods receipt) VA02 (remove the billing block) VF01 (credit for
returns)
8. It is suggested to have a billing block in order to check if the credit is authorised and valid. Thus assign the
standard billing block is 08.
Consignment pick-up
1. The consignment pick-up process is the last and final process linked to the consignment procedure. It is
responsible for picking up of faulty material as well as the picking up of excess materials not yet consumed by a
consignment issue.
2. Sales document type CP; document category C; item category KAN; schedule line category F0/F1 ;
movement type 632, delivery type LR and no billing is necessary as the ownership of the goods does not change.
3. Depending on the business type, it may be necessary to have a mandatory reference for a consignment pick-up
from a consignment fill-up order, which will restrict all pick ups without proper authorisation.
4.

Indicate document flow in the copy control rules.

5. Like in any other returns process, a specific returns shipping point is suggested to be determined to bring the
goods back from the consignees place to the plant.
6. No invoice is necessary, as the goods are not changing ownership. The goods issue is the trigger that transfers
ownership from the business to the consignment consumer.
7. The standard schedule line category is F1, where the item is relevant for transfer of requirements and availability
check is done on customers consignment.
8. Transaction flow VA01 (CP) VL01N (PGR) after goods reciept if you proceed to stock overview screen, you
will notice that the material available at the customers consignment has decreased by the quantity picked up.