Following are the end-to-end configuration and implementation steps to model the automatic creation of consignment fill-up sales orders in SAP ERP Central Component (ECC). The process uses Supply Network Planning (SNP) deployment functionality in SAP Advanced Planning and Optimization (SAP APO). It also enables the sales order-purchase order (SO-PO) push relationship between the vendor-managed inventory (VMI) supplier and the consignment customer. This concept opens up an opportunity for you to model this or similar requirements using the standard vendor-managed inventory (VMI) functionalities in SAP APO SNP.

Customer Consignment Features and Processing in ERP

The consignment process keeps the stock in the customer’s premises, but until the customer consumes or sells it, it will be a part of the company stock. (It is not mandatory that you stock the consignment stock in the customer’s premises. You can store it in the company premises too.)

Consignment Features

In the customer consignment process, the customer delegates the responsibility for efficient stock management of a material to a supplier. The supplier manages the stock of a specific material at the company‘s site. The supplier can be in charge of the replenishment task. The supplier owns the consignment material until the material is taken out of stock for use in production or consumption or the customer decides to post the material in its own stock. The customer pays the supplier after the material is taken out of the consignment stock.

In consignment stock processing in SAP ERP, consignment goods are stored at the customer location but owned by the supplier company. The customer pays for these goods when they are removed from consignment stock. Billing is based on the actual quantity taken. Consignment stock is part of the supplier valuated stock in SAP ERP. It is managed as special stock in inventory management and is assigned to specific customers.

There are four main transactions for consignment processing:

1. Create a consignment fill-up (to send material to the customer consignment stock owned by the supplier)
2. Create a consignment issue (to issue material from the customer consignment to the customer)
3. Create a consignment pick-up (to return material from customer ownership to the customer consignment)
4. Display a consignment return (to pick up consignment stock and move it to the plant stock)

The first two transactions are important to understand:

Consignment fill-up (Figure 1): Consignment fill-up is used to supplement the customer’s consignment stock. Goods issue of the appropriate stock is posted from the unrestricted-use stock to consignment stock (special stock). The goods remain in the possession of the vendor. When the supplier ships the consignment stock to the customer, the transaction is recorded by creating a consignment fill-up order (standard order type KB). In this process you have a consignment fill-up order and a consignment fill-up delivery.

Figure 1

Consignment fill-up process

Consignment issue (Figure 2): A consignment issue enables the customer to take consignment goods from the special stock for its own use or to sell. Consignment issue involves removing the goods from the special stock and making it the property of the customer. When the customer removes consignment stock to use or sell, you record the transaction in the system by creating a consignment issue order (standard order type KE). In this process you have a consignment issue order, consignment issue delivery, and a consignment issue invoice. (The flow is very similar to normal sales order processing wherein the materials are issued from the consignment stock instead of plant stock unrestricted.)

Figure 2

Consignment issue process

Consignment stock in SAP APO (Figure 3): In SAP APO the consignment stock is managed as special stock with an available-to-promise (ATP) category CD (consignment stock) and in a VMI scenario is assigned to the customer location. This enables you to keep track of the consignment stock and use it within planning processes (e.g., SNP heuristic). It represents the consignment stock of ATP category CD at the customer location. You can transfer it from ECC to SAP APO via the Core Interface (CIF). To enable the system to complete this transfer, see the Note in the “CIF Integration Model Setup” section.

Figure 3

Consignment stock in SAP APO

Consignment VMI Processing

The consigned VMI process is a combination of customer consignment and VMI. In this scenario the vendor maintains and manages a stock of its products at the customer's site as vendor consignment stock and carries out replenishment planning on behalf of the customer.

VMI Versus Consignment Inventory

Figure 4 shows the main differences between VMI and consignment inventory. One of the main differences is inventory ownership in the customer’s location, which is with the supplier in the case of consignment but with the customer in the case of VMI.

Figure 4

VMI versus consignment inventory

Consigned VMI Scenario (VMI with Consignment)

Figure 5 shows the following process steps for a consigned VMI scenario:

• The customer is managed in SAP APO and maintains the reorder point and required safety stock.
• At the supplier’s location, the forecast is done in DP and released to SNP.
• An SNP planning run at the customer location generates replenishment proposals if the stock is below the reorder point.
• The supplier receives the replenishment requirement from the consignment customer.
• The supplier runs SNP to plan the shortage for the requirement received from the direct customer’s SO and for forecast and consignment customers.
• Once the inventory is available at the supplier location, the SNP deployment run is performed.
• The result of the deployment is the creation of a consignment fill-up order in the ECC system with or without an availability check.
• An outbound delivery is created and Post Goods Issue is done in the ECC system (which can be automated) to transfer the inventory from the supplier’s location to the consignment location.
• Once the consignment customer consumes the VMI inventory, the customer sends the communication to the supplier.
• The supplier creates the consignment issue sales order and outbound delivery as per the communication received from the customer. This process reduces the inventory level at the consignment location in the SAP APO system at the same time.

Figure 5

Consigned VMI process flow

Prerequisites for Data Setup for Consignment Planning in ECC

This section covers the prerequisite configuration and master data setup required in ECC to enable the consignment planning in SAP APO with ECC integration.

Business Function Activation

Business function APO_VMI_CONS activation is one of the critical prerequisite activities to enable the consignment and VMI process in SAP APO. You can activate it by using transaction code SFW2 or by following menu path SPRO > Activate Business Functions. In the next screen, the SAP system shows all the available business functions. You need to search for APO_VMI_CONS (Figure 6).

Figure 6

Available business functions

Select the check box under the Planned Status column and activate it by clicking the activate icon from the application tool bar. Figure 7 shows the screen with the results after the business function is activated. The yellow lightbulb icon indicates that the business function is activated. This business function is irreversible. It means once it is activated it can’t be deactivated. Therefore, make sure you activate it only when you need it.

Figure 7

Business function activation in ECC

This business function enables an integrated VMI scenario in SAP ERP and SAP APO for a standard or a consigned process. VMI enables the vendor to determine replenishment requirements for the customer and replenish the stock of its materials at the customer's site. If VMI is combined with customer consignment, the vendor owns and manages this stock until the customer withdraws the material for consumption.

The material master in ECC must have Sales and material requirements planning (MRP) views created to use this business function and functionality.

Settings and Enhancements for Sales Orders

In this configuration step, a consignment-specific sales document type created in sales and distribution (SD) order type configuration needs to be maintained for each valid consignment customer and sales area level.

Maintain this configuration (Figure 8) by following menu path SPRO > Integration with Other SAP Components > Advanced Planning and Optimization > Application-Specific Settings and Enhancements > Settings and Enhancements for Sales Order > Settings for Vendor Managed Inventory (VMI) > Assign Sales Area and Order Type to Ordering Party/Plant. Click the New Entries button and then enter the customer number, sales organization, distribution channel, division, and sales document type for the consignment order. You can maintain different document types for different customers or the same customer for different sales areas.

Figure 8

Maintain the sales area and order type for consignment

This sales document type is used to create the consignment fill-up sales order when the SNP deployment created PO is transferred from SAP APO to ECC. If the desired record is not maintained, then the system automatically uses the standard consignment sales document type (e.g., KB).

You can also activate an ATP check at the same time for the sales order.

Customer Material Info Record

A customer material info record (Figure 9) has to be maintained in ECC by using transaction code VD51 or by following menu path Logistics > Sales and Distribution > Master Data > Agreements > Customer Material Information > Create. The customer material info record in ECC carries the customer and customer material. This is used as a reference to automatically create the customer location and extend the location products at the customer location in SAP APO automatically using the Core Interface (CIF). This is an optional step to avoid the manual extension of the product master at the customer location in SAP APO. In the screen shown in Figure 9, enter the consignment customer number, sales organization, and distribution channel for which the configuration setting has been maintained in the above step. Press Enter. In the next screen enter the material number for which the customer info record has to be created. You can maintain multiple materials for the same initial selection.

Figure 9

Create a customer material info record

CIF Integration Model Setup

With SCM 7.0 in SAP APO VMI, the system is able to automatically create a location product master in the ship-to location (customer location) when the integration model for the customer material is generated and activated using the CIF from ECC. The customer material info record must exist in ECC.

A new CIF integration model object for the customer material has to be created by using transaction code CFM1 or by following menu path Logistics > Central Functions > Supply Chain Planning Interface > Core Interface Advanced Planner and Optimizer > Integration Model > CFM1 – Create. In this screen (Figure 10) enter the Model Name, APO Logical System, and APO Application.

Figure 10

Create the CIF integration model for the customer material

Under the Material Dependent Objects select the Materials and the Customer Mat. check boxes. Define the selection parameters under the General Selection Options for Materials on the right side of the screen. Additionally, enter more filter criteria for Customer Material by Customer number, Distr. Channel, and Sales Org. Click the execute icon on the application tool bar. In the next screen, click the execute icon to generate the integration model.

Activate the CIF integration model by using transaction code CFM2 or by following menu path Logistics > Central Functions > Supply Chain Planning Interface > Core Interface Advanced Planner and Optimizer > Integration Model > CFM2 – Activate. This will create the product master at customer location in APO and the customer material number is populated in the SNP2 tab page.

To display the product master at the customer location, execute transaction code /n/SAPAPO/MAT1 or follow menu path Advanced Planning and Optimization > Master Data > Product > Product. The Customer Matl (customer material) field is available in the SNP2 tab (Figure 11).

Figure 11

The Customer Matl field in the SNP2 tab

Prerequisites for Data Setup for Consignment Planning in SAP APO

This section covers the prerequisite configuration and master data setup required in SAP APO to enable consignment planning with ECC integration.

Location Master Data in SAP APO (Customer Master; Location Type-1010)

After the SAP system transfers consignment customer master from ECC to APO via the CIF, it creates the location with a location type of 1010 (customer master) in SAP APO. Because this is a consignment customer, you need to assign manually the VMI customer in the location master shown in Figure 12. Use transaction code /n/SAPAPO/LOC3 or follow SAP menu path Advanced Planning and Optimization > Master Data > Location > Location. After you press Enter, the screen in Figure 12 appears. In this screen assign the VMI customer number under the VMI Cust. tab in the Location for Sold-To Party field and click the save icon to save the record.

Figure 12

Assign the VMI customer number in the VMI Cust. tab

To plan at the consignment location, the system should be able to consider the consignment location stock in the netting process. To enable this, select the SNP tab of the location master (Figure 13). Assign the Stock Cat. Group by selecting the appropriate category group from the F4 selection and click the save icon to save it. This Stock Cat. Group should consider the consignment stock as available stock in the netting process at the customer’s location.

Figure 13

Assign the stock category group in the SNP tab

The stock category group is the group of different stock categories used during net requirement calculation at the respective location. The above Stock Cat. Group is maintained by following menu path SPRO > Advanced Planning and Optimization> Supply Chain Planning> Supply Network Planning (SNP) > Basic Settings>Maintain Category Groups. In the screen that appears (Figure 14), click the New Entries button, and in the Categories section of the screen, enter the custom category group number (e.g., ZC1) to be created and a description (e.g., CC, CD, and CF). In the left side of the screen, expand the Category Groups folder and then click the Categories subfolder. This action opens a screen in which you can assign all the required stock categories to be considered as available stock during the SNP netting process. Click the save icon to save your data.

Figure 14

Display category groups

Transportation Lane

A transportation lane of the type Consignment is required to create the replenishment proposal from the consignment location to the supplier location in SAP APO.

This type of transportation lane is not created automatically in SAP APO.

Create manual transportation lanes between the supply location and consignment customer locations of type Consignment by using transaction code /n/SAPAPO/TL1 or by following menu path Advanced Planning and Optimization > Master Data > Transportation lane > Transportation Lane (Figure 15).

Figure 15

Transportation lane

To create the consignment transportation lane, enter the model name 000, Start Location, Destination location, and consignment location (these activities are completed in a screen not shown). Click the create icon on the application tool bar.

In the next screen (Figure 15), click the create icon under the Product-Specific Transportation Lane section. A new screen appears on the right side in which you enter the product number for which the transportation lane is being created. Enter the validity dates and form of procurement as consignment. Other parameters can be maintained as per business need. Click the save icon to save the transportation lane.

Means of Transport

Means of transport is basically the category of a vehicle used for transport. You assign it to a transportation lane to capture the correct lead time including the transportation duration.

The means of transport is created and assigned by using transaction code /n/SAPAPO/TL1 or by following menu path Advanced Planning and Optimization > Master Data > Transportation lane > Transportation Lane (Figure 15). In Figure 16, select the Do Not Build Transit Stock check box in the Means of Transport screen to avoid the inventory duplication at consignment location in SAP APO. When this option is selected, the stock in-transit does not display at the consignment location in SAP APO. This is required because the customer location is not in the SAP system and the in-transit stock duplicates the inventory and does not dissolve from the consignment location.

Figure 16

Means of transport

Publication Rule

Maintain the distribution definition for the publication type Sales Order and Delivery document for the supplier location by using transaction code /n/SAPAPO/CP1 or by following menu path SPRO > Integration via SAP APO Core Interface (CIF) > Basic Settings for Data Transfer > Publication > Maintain Distribution Definition (Figure 17).

Figure 17

Maintain the distribution definition

Click the New Entries button. Select the publication type from the drill down and enter the location number, logical system, and system release (the product version of the destination location) Click the save icon to save the record.

This setting is required to create the consignment fill-up sales order in ECC from SAP APO.

Product Master at the Customer Location

Product masters at the customer location are created automatically when the customer material info record is transferred from ECC to SAP APO using CIF. There are certain SAP APO-specific planning parameters that have to be updated in the product master created at the customer location via CIF.

Maintain the product master at the customer location by using transaction code /n/SAPAPO/MAT1 or by following menu path Advanced Planning and Optimization > Master Data > Product > Product. Maintain the Lot Size procedure as Reorder Point, Reorder Point Method 1, and Safety stock (Figure 18). This setting is used in the current scenario but can vary from client to client.

Figure 18

Maintain the product master at the customer location

Product Master at the Supplier Location

Product masters at the supplier location are created automatically when the material masters at the supplier location gets transfer from ECC to SAP APO using the CIF. There are certain SAP APO-specific planning parameters that have to be updated in the SAP APO product master created at the supplier location via CIF.

Maintain the product master at the supplier location by using transaction code /n/SAPAPO/MAT1 or by following menu path Advanced Planning and Optimization > Master Data > Product > Product. Maintain deployment-relevant planning parameters highlighted in the SNP 2 tab (Figure 19). In this screen, enter the demand profile, supply, and deployment profiles. Save the product master by clicking the save icon available on the standard tool bar.

Figure 19

Maintain the product master at the supplier location

Consignment Planning Process in SNP

This section shows the step-by-step process to execute the consignment planning process at the customer and supplier locations. It demonstrates how to validate the data along with each integrated step between ECC and SAP APO.

Consignment Location: View Before the SNP Planning Run

The purpose of this step is to capture the planning view before the planning run at the consignment location.

Review the initial stock/requirement situation in the product view by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View.

Enter the planning version, product number, and consignment location to get to Figure 20. It displays the product view with all the requirement, receipts, and stock for review. Figure 20 shows the available consignment stock as 812 EA, which is less than the defined reorder of 1200 EA (refer to Figure 18). SNP uses this data to trigger the replenishment process. Normally, the SNP planning process is set up as automatic background jobs but this can be executed manually on an ad hoc basis by planners. It creates a procurement proposal at the customer location and generates an equivalent demand at the supplier location to fulfill the shortage.

Figure 20

Initial product view at the customer location

Review the initial shortage/excess situation in SNP planning view by using transaction code /n/SAPAPO/SDP94 or by following menu path Advanced Planning and Optimization > Supply Network Planning > Planning > Interactive Supply Network Planning (all Books).

Select the required planning book/data view and selection profile and load the data. To load the data, select the objects to be loaded and then click the load data icon on the top left corner of the planning view screen (Figure 21). Figure 21 represents the shortage situation with respect to the defined reorder point. The Stock on Hand (Projected) key figure is 812 EA (highlighted), while the Reorder Point key figure as 1,200 EA.

Figure 21

Initial data view at the customer location

Supplier Location: View Before the SNP Planning Run

The purpose of this step is to capture the planning view before the planning run at the supplier location.

Review the initial stock/requirement situation in the product view by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View.

Enter the planning version, product number, and consignment location to get to Figure 22.

Figure 22

Initial product view at the supplier location

The current available stock at supplier location is: 2228 EA. The available stock is more than the total requirement.

Review the initial shortage/excess situation at the supplier location in the SNP planning view by using transaction code /n/SAPAPO/SDP94 or by following menu path Advanced Planning and Optimization > Supply Network Planning > Planning > Interactive Supply Network Planning (all Books).

Select the require planning book/data view, selection profile, and load the data to go to Figure 23. To load the data, select the objects to be loaded and then click the load data icon in the top left corner of the planning view screen.

Figure 23

Initial data view at the supplier location

Figure 23 shows the excess inventory situation with respect to total demand.

In the Initial column, the Total Demand key figure is 130, and the unit is EA for each.

In the Initial column, the Stock on Hand (Projected) key figure equals 2098 EA (the stock in the previous bucket plus the initial: total receipt) minus the initial: total demand.

Stock on Hand (projected) on the current date is [(Actual physical stock + Total Receipts) – (Total Demand)]

[(2228 + 0) -130)] = 2098 EA.

Consignment Location: Run SNP Planning (Interactive)

The purpose of this step is to execute the SNP planning run at the consignment location and validate the planning results.

Execute the SNP planning run interactively at the customer location by using transaction code /n/SAPAPO/SDP94 or by following menu path Advanced Planning and Optimization > Supply Network Planning > Planning > Interactive Supply Network Planning (all Books).

Select the require planning book/data view and selection profile. Load the data by selecting the objects to be loaded and then click the load data icon on the top left corner of the planning view screen to go to Figure 24.

Figure 24

Customer view after the SNP Planning Run

To go to change mode click the change icon  in the application tool bar. Execute the SNP location heuristic planning by clicking the execute icon in the Location button shown at the top of Figure 24.

After you execute the SNP heuristic at the consignment location, the replenishment proposal is generated for the quantity of 388 to meet the reorder point and safety stock requirement (Figure 24).

Stock on hand = 812

Reorder point = 1200

Stock below the reorder point = 388 (1200 – 812)

Consignment Location: Review Planning Result

The purpose of this step is to review the results of the SNP planning run at the consignment location. Results can be reviewed interactively by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View.

Enter the planning version, product number, and consignment location to get to Figure 25. This view is only for review the current stock requirement situation. No action is required in this view. The result of SNP planning run at the customer location is the creation of a purchase requisition and demand at the supplier location. See the marked requisition 900000240466 with the quantity of 388 EA.

Figure 25

Customer view after the SNP planning run

Supplier Location: Review Demand

The purpose of this step is to review the results at the supplier’s location after the SNP planning run at the consignment location.

Demand can be reviewed interactively by using transaction code /n/SAPAPO/SDP94 or by following menu path Advanced Planning and Optimization > Supply Network Planning > Planning > Interactive Supply Network Planning (all Books).

Select the require planning book/data view and selection profile. Load the data by selecting the objects to be loaded and then click the load data icon on the top left corner of the planning view screen to go to Figure 26. Planning at the consignment location created the demand of 388 at the supplier location.

Figure 26

Supplier view after the SNP planning run

Supplier Location: Deployment Run and Proposal Review

The purpose of this step is to distribute the available stock at the supplier’s location to the various customer demands based on the defined deployment rules in the product master. This happens as a result of the deployment planning run. Stock at the supplier location has to be distributed and confirmed to the various demand locations based on business requirements at the supplier location.

Execute deployment planning interactively at the supplier location to confirm the product delivery at consignment location by using transaction code /n/SAPAPO/SDP94 or by following menu path Advanced Planning and Optimization > Supply Network Planning > Planning > Interactive Supply Network Planning (all Books).

Select the require planning book/data view and selection profile. Load the data to go to Figure 27.

Figure 27

Supplier view after the SNP deployment run

Go into change mode and click the Deployment button to execute the deployment run. The result of deployment run is the creation of Deployment: VMI sales order. Refer to the highlighted orders in Figure 27.

The result of the SNP deployment run at the supplier location can also be reviewed interactively by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View.

Enter the planning version, product number, and supplier location to go to Figure 28. The result of the deployment run is DEP: VMI-SO, order number 900000240468 at the supplier location, displayed in Figure 28.

Figure 28

Product view after the SNP deployment run at the supplier location

Supplier Location: Transfer the Planning Results to ECC and Review the Proposal in APO and ECC

The purpose of this step is to send the SAP APO deployment-generated proposal back to ECC for further execution and to review the results in SAP APO and ECC. This step (transfer planning result) is only needed if the transfer result to OLTP is configured for periodic transfer. Normally, deployment results are transferred on a real-time basis.

The next step after the deployment run is to transfer the result of deployment planning (DEP: VMI_SO) back to ECC. Transfer the deployment planning results to ECC by using transaction code /SAPAPO/C5 or by following menu path Advanced Planning and Optimization > APO Administration > Integration > Publication > Publish Orders.

Enter the product identifier or location identifier to filter the output result. Click the execute icon to go to Figure 29. Select the record to be sent to ECC and click the execute icon.

Figure 29

Publish SNP: deployment orders to ECC

After transferring the deployment result back to ECC, refresh the product view in transaction code /n/SAPAPO/RRP3 or by following SAP menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View.

The deployment (DEP) planning element: VMI-SO has been converted into the transport load building (TLB) planning element: VMI-SO (order number 20000399) as shown in Figure 30.

Figure 30

Product view review for VMI-SO

After the deployment planning run results are transferred to ECC, the CusOrd (sales order) has been created in ECC you can review it in the stock requirement list by using transaction code MD04 or by following menu path Logistics > Production > MRP > Evaluations > Stock/Requirements List.

Enter the material number and plant to go to Figure 31. Refer to the marked CusOrd number and Receipt/Reqmt. Qty in Figure 31. These numbers match the SAP APO results shown in Figure 30.

Figure 31

Stock requirement list for the supplier location

Consignment Location: Review the Results after the Deployment Run

The purpose of this step is to review the results at the consignment location after the deployment run.

Refresh the product view at the consignment location in APO by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View (Figure 32). Purchase Requisition 900000240466 has converted into PO 20000399. The PO is linked to the SO and can be easily located by referring to the same order number.

Figure 32

The product view shows the PO-SO relationship at the consignment location

Supplier Location: Display and Validate the Customer Sales Order in ECC

The purpose of this step is to validate the consignment sales order by validating the values for sales document type, sales area, Sold-To, and created by. These values should be same as defined in the configuration setting for the customer, sales area level.

Display sales order header data in ECC by using transaction code VA03 or by following menu path Sales and Distribution > Sales > Order > Display. Enter sales order number 20000339 and click the continue icon or press Enter to display sales order. In the display sales order overview screen (not shown), click the display doc. Header details icon  on the right side of the PO date field to go to Figure 33. In this screen, the order type and sales area data is displayed. It is the same as what was maintained in the configuration for the given customer and sales area. The sales document type is Consignment Fill-up created by ALEREMOTE, which is basically the SAP APO Remote Function Call (RFC) user. This validates that the sales order is created by the SAP APO system. Refer to Figure 33 for more details.

Figure 33

Display the sales order header data

Supplier Location: Create a Delivery in ECC

The purpose of this step is to initiate the consignment fill-up process. The first step is to create the outbound delivery document.

Create an outbound delivery by using transaction code VL01N or by following menu path Sales and Distribution > Shipping and Transportation > Outbound Delivery > Create > Single Document > With Reference to Sales Order. Enter the Shipping point, consignment fill-up sales order number, and selection date to go to the delivery creation screen.

Create the delivery for a partial quantity 2 (0080262840) and the remaining quantity of 386 remains as a sales order (0020000399), as shown in Figure 34. The available current stock quantity is 2,228.

Figure 34

Stock requirement list displaying the delivery document

Supplier Location: Display and Validate the Delivery Document in SAP APO

The purpose of this step is to validate the real-time integration and update the delivery and sales documents in SAP APO.

Validate the delivery document created in SAP APO at the supplier location by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View. Enter the planning version, product number, and location to go to Figure 35.

Refer to the marked category VMI dely number 80262840 of the quantity of 2, which is transferred to SAP APO and created as a VMI delivery at the supplier location. The TLB: VMI-SO 0020000399 quantity has been reduced by 386. The available current stock quantity is 2,228. (Refer to Figure 35 for the product view.)

Figure 35

Product view reflecting the delivery document

Review the same results in SNP planning view by using transaction code /n/SAPSAP APO/SDP94 or by following menu path Advanced Planning and Optimization > Supply Network Planning > Planning > Interactive Supply Network Planning (all Books). TLB: VMI Sales Order and VMI: Delivery are displayed under the DistrDemand (TLB-Confirmed) key figure (Figure 36).

Figure 36

SNP planning view reflecting VMI-SO and VMI delivery

Supplier Location: Perform Post Goods Issue and Review Results SAP APO

The purpose of this step is to complete the consignment fill-up process by issuing the goods against the outbound delivery created in the previous step.

Change the outbound delivery by using transaction code VL02N or by following menu path Sales and Distribution > Shipping and Transportation > Outbound Delivery > Change > Single Document.

Enter the outbound delivery number 80262841 created in the previous step. Assign the batch number and then click the Post Goods Issue button to issue the goods for billing. After the goods issue, the supplier stock has reduced by a quantity of 2. The current available stock is now 2,226.

The delivery status is completed and is not available in the stock/requirement list anymore. This can be reviewed in the stock requirement list by using transaction code MD04 or by following menu path Logistics > Production > MRP > Evaluations > Stock/Requirements List (Figure 37).

Figure 37

Stock/requirement list at the supplier location

Review the Effect of PGI in SAP APO at the Supplier Location

The purpose of this step is to validate the real-time integration and update the delivery, stock, and sales documents in SAP APO at the supplier’s location.

Refresh the product view at the supplier location in SAP APO by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View. Make sure the location and products are selected correctly.

Refer to Figure 38 to review the current stock of 2,226, which is reduced by the quantity of 2 and is in sync with ECC. The delivery doesn’t exist anymore in the product view.

Figure 38

Product view at the supplier location

Consignment Location: Review the Stock Situation

The purpose of this step is to validate the real-time integration and update of the delivery, stock, and purchasing documents in APO at the consignment location.

Review the effect of PGI in SAP APO at the consignment location by using transaction code /n/SAPAPO/RRP3 or by following menu path Advanced Planning and Optimization > Production Planning > Interactive Production Planning > Product View. Enter the planning version, product, and location to go to Figure 39.

In Figure 39, note that the consignment stock is increased by the quantity of 2 at the consignment customer location against batch 14012B and is in sync with the consignment stock in ECC (earlier it was 144). Also, the purchase order for the quantity of 2 is closed. The open PO/SO (20000399) quantity is 386.

Figure 39

Product view at the customer location

Consignment Location: Stock Reduction

This is the final step in which the consignment customer informs the supplier about the actual consumption of VMI inventory. Based on this input the consignment issue process is triggered by the supplier.

When the consignment customer consumes the consignment stock, the supplier receives the communication by any one of the method (e.g., mail, phone, or fax). The supplier creates the consignment issue sales order and delivery for the quantity communicated by the consignment customer.

A goods issue is performed against the consignment issue delivery in ECC. The changes move to APO and the consignment inventory is reduced at the consignment location in the SAP APO system accordingly.

This covers the complete end-to-end process of creating a consignment fill-up order from SAP APO and updating the consignment inventory at the consignment location automatically.

For more information, go to:

SAP Help: www.help.sap.com

Go to the Supply Chain Management homepage