Customer Consignment is a form of business in which the vendor maintains a stock of materials at a customer’s location. The vendor retains ownership of the materials until they are withdrawn from the consignment stores. The customer is only charged for product once it is reported as used at which time it is deleted from inventory.
Sales and Distribution
Consignment in SAP SD
In SAP consignment is one the special procurement type. Under consignment when goods are procured from the vendor, these are physically stored in company’s premises but these goods are not the property of the company. These goods still belong to the supplier. This is the nature of ownership of the stocks which differentiate it from company’s other stock. All this stock is widely known as consignment stock in SAP.
SD-MM Integration
In the standard SAP, with the standard configuration setting, for both Material Management as well as for Sales & Distribution, when we go for third party processing with SD components the systems take care of all the transaction automatically. Hence no extra efforts are required by consultants to meet the client requirement.
Pricing Procedure in SD
An Overview of Determination & Configuration of Pricing Procedure is as follows:
In SD, Pricing Procedure is determined based on Sales Area (Sales Organization + Distribution Centre + Division) + Customer Pricing Procedure + Document Pricing Procedure. Sales Area is determined in Sales Order Header Level. Customer Pricing Procedure is determined from Customer Master. Document Pricing Procedure is determined from Sales Document Type / Billing Type (if configured). Once the pricing procedure is determined, Condition records are fetched. If appropriate condition records are found, the price is determined. If Mandatory pricing condition is missing, system will through an error message.
SAP SD Billing Document Consolidation and Splitting Guide
Introduction:
Most organizations run the billing due list nightly to create billing documents. Quite often there are questions related to how and why certain deliveries or orders combine, or fail to combine, on billing documents. This document will explain how the standard system works and provide examples of how the standard logic can be enhanced.