SAP S/4 HANA EWM: Vendor Consignment Process

Vendor Consignment is a process wherein the supplier provides materials and stocks them in the purchaser’s premises. The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and put to use. The inventory gets transferred to the books of the purchaser only when the same is removed from the consignment stock. The supplier (vendor) would not invoice the purchaser initially when they come into the premises of the purchaser. The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed).

In this blog we will see one of the ways of handling consignment stock in EWM along with some basic and prerequisite configurations.


Detailed Steps in SAP EWM for Handling Consignment Stock

  1. Configure Consignment Stock Types: In EWM, ensure that the warehouse is configured to handle special stock types, specifically consignment stock
  2. Inbound Delivery: Create and manage inbound deliveries for consignment stock in EWM to track the goods from their entry into the warehouse.
  3. Warehouse Tasks and Confirmations: Generate and confirm warehouse tasks to allocate the consignment stock to the appropriate storage bins within the warehouse.
  4. Stock Identification: Clearly identify and label consignment stock to prevent mixing with regular stock. Manage this through storage bin management and stock types in EWM.

Detailed Steps required from SAP MM for Handling Consignment Stock

1. Create Consignment Info Record
  • Create an info record for consignment material. Specify the vendor, material, purchasing organization, and plant.
2. Create Consignment Purchase Order
  • Create a purchase order (PO) for the consignment stock. Select the item category as “K” (consignment). This PO indicates that the materials will be supplied under consignment.

In this scenario, we have a dedicated storage location to manage the Consignment stock. Storage location 2000 for Vendor Consignment stock.

In EWM, created a new availability group 004.

Assigned the availability group to the combination of plant and Sloc.

For consignment stock , created a new stock type CN and linked it to FF Non location dependent stock type.

Consignment stock will be stored in 2000 SLOC and into a dedicated storage type CONS.

Created a Consignment PO

Created IBD in ERP and replicated the same in EWM. Please notice few important fields in EWM like Usage,Stock type,Owner and PETD.

Completed the GR and putaway. In stock overview we can see that Owner is still the supplier.

After GR is posted we can see that , in ERP as well stock is posted as vendor consignment stock.

Now stock needs to be withdrawn from consignment to own stock. There are two ways of doing the same.

Option 1 -> perform posting change using /scwm/post transaction.

In this transaction, using WTP 4010 a posting change is initiated.

After saving the details in /scwm/post, WO got created.

After confirming the task we can see that stock is moved to physical storage type AK30 and ownership is also changed.

in ERP we can see that material document got posted using movement type 411K

Option 2 -> Create adhoc WT to move the stock from CONS to 0030 storage type.

In this option, stock type will automatically get changed to F2 and also ownership will get changed to PETD. This happens because of below checkbox in the destination storage type.

Creating a adhoc WT using /scwm/adprod transaction.

after confirming the task, we can see that stock not only moved to 0030 but also stock type got changed and ownership got changed.

In ERP , material document got posted.

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Blog By

Amith Kumar

Scmcloudbook

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