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Consignment goods are those goods that are stored at the customer's premises, but which are still the property of your company. The settlement for these goods is not required until the customer withdraws them from the consignment stock (also known as special stock). If you use articles with segmentation when you create orders, the system considers the segment values you entered and saves them. For fashion articles, optionally you can execute Order Allocation Run (ARun). When you create an article, you select the Order ARun option in the Logistic DC: Fashion tab to specify that the article is relevant for ARun for a particular plant.

Process

The following diagram illustrates the steps involved in the consignment process:

This graphic is explained in the accompanying text.

If the article is not relevant for ARun, the consignment processing takes place as in the standard SAP ERP system. For more information, see Consignment Stock Processing.

If the article is relevant for ARun, the system executes ARun during consignment processing. During the consignment processing, the system performs the following:

  1. Automatically executes the immediate allocation run in the background during order creation if the following condition is satisfied:

    • You assigned the ARun rule (for immediate allocation) to the order type in Customizing for Assign Rule to Order Types under   Logistics – General   SAP Fashion Management   Order Allocation Run (ARun)   Cross-Applications   Sales Document Handling  .

  2. Automatically creates a delivery when you save the order based on the settings you defined in Customizing for Define Sales Document Type under   Sales and Distribution   Sales   Sales Documents   Sales Document Header  .

    • If Immediate delivery = A, the system creates a delivery immediately for the order type.

    • If Immediate delivery is BLANK, the system only executes the allocation run and you must manually create the delivery for the order type.

Note Note

If you do not assign ARun rule for immediate allocation and Immediate delivery is BLANK, you must execute the online ARun after saving the order. In addition, you must manually create the delivery.

End of the note.
  1. Consignment Fill-up

    When you fill the consignment stock of the customer using the consignment fill-up document and you use the article that is relevant for ARun, allocation happens before creating the delivery in addition to the standard procedure.

    The following diagram illustrates the consignment fill-up process for articles relevant for ARun:

    This graphic is explained in the accompanying text.

  2. Consignment Issue

    When you withdraw the consignment stock during the sales process, you document this procedure by creating a consignment issue (order type KE in the SAP system).

    When you post the goods issue, the system deducts the relevant quantity from the customer's special stock and from your own valuated stock.

    The ARun type selects the stock elements based on the rule you define in Customizing for Maintain Rules for Stock Selection under   Logistics – General   SAP Fashion Management   Order Allocation Run (ARun)   Online ARun   Selection  . For this selection rule, enable consignment stock and in view segments enable MSKU-KULAB. Both are essential if you want to allocate consignment stock.

    The following diagram illustrates the consignment issue process for articles relevant for ARun:

    This graphic is explained in the accompanying text.

  3. Consignment Pick-Up

    Customers can return unused consignment stock to your company's warehouse using the consignment pick-up document. If the customer returns your consignment stock, you document this procedure by creating a consignment pick-up (order type KA in the SAP system).

    When you post the goods issue, the system removes the customer“”s special stock for the corresponding quantity and posts it to the normal stock of the receiving plant. Your total valuated stock remains the same since the returned stock was taken from your own inventory even while it was at the customer's premises.

    The ARun type selects the stock elements based on the rule you define in Customizing for Maintain Rules for Stock Selection under   Logistics – General   SAP Fashion Management   Order Allocation Run (ARun)   Online ARun   Selection  . For this selection rule, enable consignment stock and in view segments enable MSKU-KULAB. Both are essential if you want to allocate consignment stock.

    The following diagram illustrates the consignment pick-up process for articles relevant for ARun:

    This graphic is explained in the accompanying text.

  4. Consignment Returns

    Customers can return goods that were previously sold from the consignment stock using the consignment returns document. If the customer wants to reset a consignment issue, you document this procedure by creating a consignment returns (order type KR in the SAP system). The system increases the customer special stock when you post the goods issue. You must create a credit memo to complete the process.

    The following diagram illustrates consignment return:

    This graphic is explained in the accompanying text.

Delivery and Billing

In all the above consignment processes, for articles not relevant for ARun, the system determines the stock segment relevant for the requirement segment (specified in sales order) based on the segmentation strategy you define Requirement/Stock Allocation in Customizing for Define Segmentation Strategies under   Logistics – General   Segmentation  . You can choose one of the batches relevant for the determined stock segment. You can issue the goods from the batch entered and later create a billing document.

For an article that is relevant for allocation run, the system determines the batch and the corresponding stock segment in the delivery based on the results from the allocation run. You can issue the goods from the batch entered and later create a billing document.