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Author's profile photo Ganna Hrivnakova

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

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      Author's profile photo Taseeb Saeed
      Taseeb Saeed

      Thanks for sharing

       

       

      Regards,

      Taseeb Saeed

      Author's profile photo Marinella Pineda
      Marinella Pineda

      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?

       

      Author's profile photo Marinella Pineda
      Marinella Pineda

      screenshot

      Author's profile photo Marinella Pineda
      Marinella Pineda

      whsewhse

      whse

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      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

       

      Author's profile photo Marinella Pineda
      Marinella Pineda

      thank you!

      Author's profile photo Rodolfo Giudici
      Rodolfo Giudici

      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:

      1. The goods are delivered from B to a warehouse "1" located at the plant of A (warehouse 1 is in SB1 and the field "consignment business partner" is filled).
      2. When this delivery takes place, the goods still belong to B -- even if the on-hand must show up in warehouse "1" to let the MRP of A compute correctly the material-requirements.
      3. The property will be transfered to A only at a later stage and "when needed", i.e. when A posts a Stock-Transfer from warehouse "1" to another warehouse "2" of theirs.
      4. "A" finally runs a monthly report to list all goods moved out of "1" in a given month; this report is sent to "B" so that "B" knows how much is to be invoiced to "A" (consumption-based invoicing)

      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

      Author's profile photo Ganna Hrivnakova
      Ganna Hrivnakova
      Blog Post Author

      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