Overview:


Consignment is the process of delivering a vehicle by an automotive manufacturer to a dealer without creating an outbound invoice. This is usually required if dealer does not have an end customer but wants the vehicle for convincing prospective customers or at times when manufacturer wishes to support its dealer financially.

The vehicle which falls under the consignment category although stored at the dealer premises is owned by the manufacturer and the dealer is not obliged to pay for these vehicles till the time the vehicles are on consignment stock. The dealer has the option to either consume the vehicles from the consignment stock if they have an end customer or return the vehicle back to the manufacturer once the consignment period is over.

Business Process Highlights:


The decision making process and determination of consignment vehicles is done by Manufacturer based on the requests sent across by the dealer

As long as a vehicle is marked as a consigned vehicle, it cannot be Outbound Invoiced. However, the physical delivery does not get affected.

In the period of consignment all vehicles will financially remain on manufacturer stock

The vehicle can be put on consignment earliest when ordering the vehicle. The latest that a vehicle can be put on consignment is before the vehicle exits the dealer premises en-route to the end customer premises.

The actual consignment period starts only when the vehicle reaches the dealer premises.

While a vehicle is on consignment amendments to the vehicle order or dealer trades cannot be performed.

The vehicles on consignment are marked as special stock which allows for the vehicles on consignment to be tracked separately

Consignment stock is managed separately within the manufacturer stock so that the information is available as to exactly what stock is stored at the dealer location.


Process Flow:


Vehicle Consignment Fill Up:

This is the process by which a manufacturer stores the vehicle at the dealer premises but the manufacturer remains the owner of the vehicle. Sales order type for consignment filling is – KB

In vehicle consignment fill up only order and vehicle delivery takes place

The steps to create the Vehicle Consignment Fill Up within SAP are as follows:

Step 1: Enter the Transaction Code VA01 in the Command Field

Step 2: The order type to be entered is KB (Consignment Fill Up)

Step 3: The Sales Organization/Distribution Channel/Division has to be entered.

Step 4: Once all fields are filled hit the “Enter” key to move to the next screen

Step 5: Enter Sold to Party / Ship to Party / PO Number/ PO date / Material /Order Quantity.

   Step 6: Click on the button

   Step 7: The message as shown below is displayed on the screen

Vehicle Consignment Issue:


The dealer can choose take a vehicle from the consignment stock and use it as a normal dealer stock wherein generally the vehicle is sold to an end customer. If this happens then the manufacturer will raise an invoice to the dealer who will then raise an outbound invoice to the end customer to whom the vehicle is sold. The outbound invoice also triggers the delivery of the vehicle from the dealer premises to the end customer premises.

This process is the vehicle consignment issue, and the sales order type is KE.

For Vehicle Consignment Issue, Order, Delivery and Invoices take place

Step 1: Enter the Transaction Code VA01 in the Command Field

Step 2: The order type to be entered is KB (Consignment Issue)

Step 3: The Sales Organization/Distribution Channel/Division has to be entered.

           

Step 4: Once all fields are filled hit the “Enter” key to move to the next screen

Step 5: Enter Sold to Party / Ship to Party / PO Number/ PO date / Material /Order Quantity.

Step 6: Click on the button

Step 7: The message as shown below is displayed on the screen

Vehicle Consignment Return:

Once a vehicle has been issued to a dealer from the consignment stock the vehicle can be returned by the dealer to the manufacturer based on factors like damaged vehicle, failure in quality checks etc. The process of returning the vehicle is called vehicle consignment returns

This process is the vehicle consignment return, and the sales order type is KR. For Vehicle Consignment Return, Order, Delivery, Invoices and Credit memos can take place

Step 1: Enter the Transaction Code VA01 in the Command Field

Step 2: The order type to be entered is KR (Consignment returns)

Step 3: The Sales Organization/Distribution Channel/Division has to be entered.

Step 4: Once all fields are filled hit the “Enter” key to move to the next screen

Step 5: Enter Sold to Party / Ship to Party /Material /Order Quantity.

Step 6: Enter Order Reason

                Step 7: Click on the button

                Step 8: The message as shown below is displayed on the screen

Vehicle Consignment Pickup:

At the end of the consignment period the manufacturer might take back the vehicle into its own stock. The vehicle is moved from the dealer premises to the manufacturer premises. This process is the vehicle consignment pickup or consignment cancellation.

The sales order type used over here is KA. In this case for the vehicle order and return delivery takes place.

Step 1: Enter the Transaction Code VA01 in the Command Field

Step 2: The order type to be entered is KA (Consignment pickup)

Step 3: The Sales Organization/Distribution Channel/Division has to be entered.

Step 4: Once all fields are filled hit the “Enter” key to move to the next screen

Step 5: Enter Sold to Party / Ship to Party /Material /Order Quantity.

                   Step 6: Click on the button

                 Step 7: The message as shown below is displayed on the screen

             

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7 Comments

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    1. Tariq Aziz

      Hi Vishal,

      Probably Abhishek has missed out on your query.

      The material, herein the “Demo vehicle” would have a batch no. This batch no would be the same as the Internal vehicle number and this batch no can be entered in the “batch” field against the material line item to achieve your requirement.

      The entering of the Internal vehicle Number then would show clearly in the stock overview too as well as the Consignment stock report too.

      Hope this answers your query.

      Regards,

      (0) 
      1. VISHAL JAJOO

        Hello Tariq,

        Thank you for reply. it make sense now. But still have question, I never worked on batch number.

        1. batch number range is internal or maintained external?

        If it’s internal then how can you keep batch number and internal vehicle number in sync or same?

        Regards,

        (0) 
        1. Tariq Aziz

          Hi Vishal,

          The internal number is defined in the VLC tables and the same number is “read” as batch number in ECC screens.

          So you have to define the number range in VLC tables only and its internal not external range.

          (0) 
          1. Vishal J

            Hello Tariq,

            Sorry for being too late to reply.

            If you look at screen shots provided, QTY is more than 1 in all steps except in Pick-up step.

            If batch # is same as Vehicle Internal number then how can we assign multiple batch # to one line item?

            Of it is assigned at the time of pick up?

            (0) 

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