Product Information
Consignment Stock in SAP Business One
Consignment Stock delivery and sales is one of the business models that is used in different countries and certainly has its solution in SAP Business One. In this article I want to describe how it is resolved there.
First at all I want to stress that when you transfer your stock to the consignment warehouse the stock belongs to you and you must reflect that fact in your accounting and balance sheet.
That means that from accounting point of view moving stock to the consignment warehouse is the same as transfer your stock from one warehouse to another one. So, it means you need to create Inventory Transfer document in SAP Business One. You can set the specific Warehouse like a consignment entering your Business Partner to the Consignment Business Partner field:
You can select any Business Partner here: Customer, Vendor or even Lead assuming that your company can be a consignee as well.
Based on report from your consignee you can issue the sales documents: deliveries and A/R Invoices from this warehouse depending on the consignment model to your consignee or to the customers that consignee organized for you.
Running the Inventory in Warehouse Report, you can easily see the stock amount and cost allocated at your consignee:
In case you are consignee then you can define the Consignor in the same way as above.
Please, also note that the Consignment Business Partner field is available in from 10.0 FP2102.
Please, note that the consignment transactions for Russian localization have extended solution that described in the Note RU_Commission Trade.
I would like to invite you to provide feedback or ask clarifying questions regarding the topic in the comments section. It is also possible to submit the improvement requests for this feature (and others as well!) on the Customer Influence site: https://influence.sap.com/SAPBusinessOne
Thanks for sharing
Regards,
Taseeb Saeed
Hi. I have newly installed SAP B1 but I cannot find this field in warehouse set up. Localization is Australia/New Zealand. Is this available for Australia/New Zealand?
whse
Hi Marinella,
this development was done for European Union localizations only and described in the https://launchpad.support.sap.com/#/notes/3024025. However, in case you need these fields in your localization as well please, raise the customer voice on https://influence.sap.com/SAPBusinessOne.
Kind regards,
Ganna
thank you!
Hi Ganna.
I'd like to submit the following business case and have your point of view on that.
My customer is Company "A". They buy from supplier "B" under a "consignment-stock agreement". Company "A" runs SB1 (v10) with the "continuous stock" option enabled.
My case is:
In this scenario, my biggest problem is:
At the time of the 1st Goods-Receipt to feed warehouse "1" (step #1 above), because of the "continuous stock option", the value of the goods flows immediately into my Chart of accounts (stock-account).
Whilst *it should not* : reason: goods are not yet "mine", and consequently I should see no value on my stock-account.
The value should flow into my Chart of accounts only at the time of the warehosuse-transfer from "1" to "2" (step #3 above).
...Thanks for sharing your thoughts 😉
With my best regards,
Rudy
Hi Rudy,
I would use specific as off balance accounts for warehouse 1 and Manage Item cost per Warehouse in the company.
Then Item Cost would not be affected by deliveries to warehouse 1. And you will have monetary value for the stock that is stored in your warehouses for the finance statements.
Kind regards,
Ganna