Consignment Management in Retail SAP Best Practices Retail (India) - PowerPoint PPT Presentation

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Consignment Management in Retail SAP Best Practices Retail (India)

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  1. Consignment Management in RetailSAP Best Practices Retail (India) SAP Best Practices

  2. Benefits Reduced procurement costs Manage consignment goods in DC and store Directly sales from consignment stock Key process flows covered Creating a basic agreement (quantity contract) Creating a purchase requisition Assigning requisition and creating purchase order Post Goods issue for Stock transfer Determining the Stock Situation After Sales POS simulation sales Settle consignment liability Scenario Overview – 1 Purpose and Benefits: Purpose This scenario deals with the consignment goods procurement, sales and liability settlement

  3. Required SAP EHP3 for SAP ERP 6.0 Company roles involved in process flows Buyer Warehouse Clerk Sales Person Accounts payable accountant Scenario Overview – 2 SAP Applications Required:

  4. Scenario Overview – 3 Detailed Process Description: • Procurement - Consignment • In contrast to processing in a manufacturing system, Retail consignment covers the following functions: • In the article master data, you can specify that you specifically want to procure the goods in one site as consignment goods. You can define the consignment control for an article for each site (for example, distribution center) independently of one another. • The system converts goods that are to be transferred from DC consignment stock to its own stock. • Retail Consignment scenario describe the process of how you order goods from external vendors as vendor consignment goods, transfer the vendor consignment goods from DC to own stock, transfer the goods from DC to Store, then POS sales and settlement consignment liability after sales.

  5. Process Flow Diagram Consignment Management in Retail Event Need for Contract Material Arrival at Plant Dock A Need for Material is Identified Warehouse Clerk Goods Receipt with Reference to PO Transfer posting of vendor consignment stock Create Outbound Delivery do the picking and PGI Requestor Purchase Requisition Buyer / Purchase Manager Assign Requisition to Contract and Create Purchase Order Create Procurement Contract Create Stock Transfer Order Posting Goods Receipt in the Store Procurement Contract Sales Person Determining the Stock Situation After Sales POS Simulate Sales Accounts Payable Accountant Settling Consignment Liabilities MRP = Material Requirements Planning, PO = Purchase Order