Consignment order steps

In consignment orders you are allowing the stock to sit in your customer location. Once he informs that he used the stock you will invoice him. If he returns the stock you will accept the stock to take it back.

It is defined in 4 steps.

Step 1:

Consignment fill up:
Sales document type is KB
Item category KBN
schedule line category E1

In this step, you are not invoicing the customer. document flow is sales order ---- delivery item category. It will not be relevant for billing and pricing because you are not charging money for these goods in this step.

In schedule line category, you will set movement type 631 & set for availability check and TOR.

Step 2:

Consignment Issue.
Once the customer informed you that he used all the goods or partial goods then you will create consignment issue for used goods.

Sales document: KE
Item category: KEN
schedule line category: C0 or C1

Here you are invoicing the customer(because he used the goods). you are assigning the delivery document and billing document to the sales document.

In item category, you are setting relevant for billing, pricing, special stock.

In schedule line category, your setting is 633 movement type, relevant for availability check & TOR.

Step 3:

Consignment Return:
Customer found that some goods are damaged or he not able to sold the goods he want to send it back. that you are creating this document.

Sales document type: KR
Item category: KRN
Schedule line category: D0

You will assign delivery document and billing to sales document. you will create return order, return delivery, return billing.
Your setting item category relevant for billing, returns, pricing, special stock.
Your setting schedule line item category: 634 movement type, NO availability NO TOR.

Step 4:

Consignment Pick up:
Even if you create the consignment return the goods are not come to direct to your plant. For that you need to create consignment pick up. here the owner ship is not changing so you do not need to create billing.
Assign return delivery to sales document type.

Sales document: KA
Item category: KAN
schedule line category: F0 & F1

Your setting item category relevant for returns. any schedule line category relevant for 632 movement type, MRP, availability check, delivery.