Vendor Payment Process After Item Is Sold

[NourAssi]

We are exploring a vendor payment process based on the sale of items and need clarification on whether SAP supports this scenario natively. In our process, the stock is owned by our company upon receipt into our warehouses or stores, but payment to the vendor is triggered only after the stock is sold to the end customer. At the end of the month, the invoice is cleared, and payment is made to the vendor based on the number of sales. If such a solution exists, could you please provide guidance on its implementation or configuration? If not, are there any recommendations or best practices for addressing this scenario through enhancements?

[MohdRKhan]

Hi

follow-up questions.

1. For the retail industry with multiple stores, how can consignment stock be effectively managed across various locations?

It can be managed as per sites and stores, so you can transfer stock to respective sites or stores. 

2. If a customer returns an item after the invoice has been submitted, how can it be differentiated within the consignment process?

Make a agreement to payment to vendor with time line to customer problem so you will get a gap to see whether it is a customer returns or not ( but it is a challenge to deal)

3. Regarding sales quantities, should we rely on reports, or is there a way to integrate this directly into the consignment process?

As per my knowledge, It is better to transfer to own premises using 411 and then need to sell it

4. Are there any best practices for managing consignment settlement and tracking in a retail environment?

Really That you need to explore. I have not checked it . I am sorry to it 

Regards

Rashid 

[MohdRKhan]

Hi 

What I understood that you buy stock from vendor and make GR to own. but you made payment to vendor when you sell it.

if it is a scenario. I would suggest to use vendor consignment Process. in this when you will make gr by 101 k movement it will show stock in your company premises but you will not be liable to pay it to vendor. when you need, you bring stock in your premises you will be liable to pay to vendor and then you sell it to customer. 

see this blog it may give you idea 

https://community.sap.com/t5/enterprise-resource-planning-blogs-by-members/vendor-consignment-proces...

Let me know if you more information 

Regards

Rashid 

[NourAssi]

Thank you for your quick response and valuable insight. I kindly have a few follow-up questions. 1. For the retail industry with multiple stores, how can consignment stock be effectively managed across various locations? 2. If a customer returns an item after the invoice has been submitted, how can it be differentiated within the consignment process? 3. Regarding sales quantities, should we rely on reports, or is there a way to integrate this directly into the consignment process? 4. Are there any best practices for managing consignment settlement and tracking in a retail environment?