All About Consignment Process - Shikshaglobe

Content Creator: Satish kumar

Transfer Process is where item are put away at the client area yet the proprietor of this item is still organization. Client stores the transfer stock at their own a distribution center. Client can consume item from stockroom whenever and client charged for item for really amount consumes. In Consignment Stock Processing, there are four primary exchanges in the SAP System, all of which backing separate administration of stock:

Transfer Fill-Up (Stock Fill up at distribution center).

Transfer Issue (Stock issue from distribution center).

Transfer Return (Stock return from client).

Transfer Pickup (Stock re-visitation of production).

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Transfer Fill-Up

Transfer Fill-Up is a cycle, where the organization store item at client locales nevertheless organization is the proprietor of this item. This cycle is known as transfer top-off (CF). The deals request type for transfer filling is - KB. In transfer take care of up just request and conveyance happens.

Create Consignment Fill-Up

Enter T-code VA01 in the order field.

Enter Order type CF(consignment top-off).

Enter deals region in hierarchical information.

Transfer Issue

The client can get to the item whenever to sell or their utilization from their distribution center and the company will give solicitations for just got to item, and this solicitations known as the transfer issue (CI). Deals request type for the transfer issue is - KE.In transfer Issue Order, Delivery and Invoices occur. Enter T-code VA01 in order field.Enter request type CI (Consignment issue).Enter Sales region information in Organizational information bloConsignment ReturnIn the event that a client returns an item because of harm, low quality, expiry, this cycle is called transfer return (CONR). Transfer return occurs after transfer issue. i.e client can return the Consignment item, the item are given to the client by Consignment issue process. Deals request type for transfer issue is - KA.In transfer Return Order, Delivery, Invoices and Credit for return occur.

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Enter T-code VA01 in order field.

Enter request type CONR(Consignment Returns).

Enter Sales region information in Organizational Data block.

Transfer Pickup

At the point when a client solicitation to the organization ,to reclaim the item, the organization will pack this item from client destinations, this interaction is known as Consignment Pickup (CP). In transfer pickup process , item are not given to client and just put away at client distribution center as transfer stock. Deals request type for transfer issue is - KR.In transfer Pickup Order,Return Delivery happens.

Enter T-code VA01 in order field.

Enter Order type CP(Consignment pickup).

Enter Sales Area information in Organizational Data block.

The consignment process is a business arrangement where one party, known as the consignor, entrusts goods or products to another party, known as the consignee, for the purpose of selling those goods on behalf of the consignor. This process is common in various industries, such as retail, art, antiques, and manufacturing. Here's a detailed overview of the consignment process:

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1. Consignor and Consignee:

  • Consignor: The consignor is the entity or individual who owns the goods and wishes to sell them through the consignee. They retain ownership of the goods until they are sold.
  • Consignee: The consignee is the entity or individual who agrees to sell the consignor's goods on their behalf. They act as an intermediary between the consignor and potential buyers.

2. Consignment Agreement:

  • A consignment agreement is a legally binding contract that outlines the terms and conditions of the consignment arrangement. It typically includes details such as the consignor's and consignee's responsibilities, pricing, payment terms, duration of the consignment period, and the commission or fee that the consignee will earn.

3. Inventory and Inspection:

  • The consignor provides a list of goods to be consigned to the consignee. The consignee inspects the goods to assess their condition, quality, and marketability. Any discrepancies or damage are documented in the consignment agreement.

4. Pricing and Valuation:

  • The consignor and consignee agree on pricing strategies for the goods. This may involve setting fixed prices, pricing ranges, or allowing the consignee to determine selling prices within specified limits.

5. Display and Marketing:

  • The consignee displays the consigned goods in their retail space or on their online platform. They may also undertake marketing and promotional activities to attract potential buyers.

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6. Sales and Transactions:

  • When a buyer purchases a consigned item, the consignee processes the sale, collects payment from the buyer, and issues a receipt or invoice. The consignee may also handle returns and exchanges as per the consignment agreement.

7. Reporting and Settlement:

  • Periodically, the consignee provides the consignor with detailed reports showing sales, inventory levels, and any expenses incurred during the consignment period. Settlements, including the consignor's share of the sales revenue (after deducting commissions and expenses), are typically made according to the agreement's terms.

8. Unsold Items:

  • Unsold items may be returned to the consignor, or the consignment agreement may specify alternative actions, such as extending the consignment period, reducing prices, or donating unsold items to charity.

9. Termination of Agreement:

  • The consignment agreement outlines conditions for its termination, including the expiration of the consignment period, mutual agreement between the parties, or specific circumstances that warrant termination.

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10. Legal and Tax Considerations: - Both the consignor and consignee should be aware of legal and tax implications related to consignment, including liability, ownership, sales tax, and income tax reporting. Consultation with legal and financial professionals may be necessary.


Here are the Sales request Types

Transfer fillup (CF) = KB

Transfer Issue (CI) = KE

Transfer Returns (CONR) = KR

Transfer pickup (CP) = KA

Must Know!

How to get Overview of Material Stock 
How to Create Quotation 
Returns , Free of Charge Delivery , Sub-sequent Delivery 
Create Customer Number Range for Sales and Assign to Customer Account Groups 

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