CONSIGNMENT PROCEDURE

[Former Member]

Hi

could anybody guide me about on SAP consignment procedure step by step..?

regards

sesidhar

[Former Member · Accepted solution]

Hi Gollu

Consignment cycle:

1)Consignment Info Record create with material and vendor.

2)Consignment Purchase Order (create with item catagery k)

3)Goods Receipt with movement type 101K

4)Consignment Stock to Own Stock,Transfer posting with

movement type 411 k

6)Goods Issue to direct consuption 201K

7)settlement through--mrko

Regards

Anjali

[Former Member · Accepted solution]

hi consignment is nothing but vendor maintain stock of material in company premises.Liability of stock remains with vendor unless and until it is removed from consignment stock and posted to warehouse stock Find detail information given in SAP Help Managing Special Stocks - Vendor Consignment Definition - Stock comprises consignment material belonging to the Vendor that is stored on your premises. When buying goods on consignment, the ordered goods still belong to the vendor, even after delivery. The goods only become the property of your company when you consume them. The quantity consumed (used) is settled with the vendor periodically, for example on a monthly basis. Pricing for Consignment Stocks Before you order a material from a vendor or post goods receipt to consignment stock, you must maintain the consignment price for the vendor. The price is required for material valuation and accounting purposes. If you order consignment from several vendors, the system maintains consignment stock for each vendor since the individual quantities of the material can have different prices. Create Info Records for Consignment Stocks Logistics>Material Management>Purchasing>Master data>Info Record>Create. Enter following information: • Vendor Account Number • Material • Purchasing Organisation (C001) • Plant • Tick Consignment selection Press enter. The header data screen appears. Click Purch. Organisation Data 1 Enter Standard Order Quantity Enter Price per pricing unit. Save Procurement of Consignment Material This section deals with creating purchase requisitions and purchase orders for consignment materials. Creating Purchase Requisitions for Consignment Material You enter purchase requisitions for consignment material in exactly the same way as for other materials. However, you must note the following: Enter K in the Item Category for consignment item to ensure the goods receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Logistics>Material Management>Purchasing>Requisition>Create. Enter following information: • Document Type NB • ITEM CATEGORY K (NOT ACCOUNT ASSIGNMENT !!!!!) • Delivery Date Requested delivery date • Plant Your plant code • Storage location Your store • Purchasing Group Your purchasing group Press enter. Enter material code and quantity required. Select line and click Details. Enter fixed vendor at bottom of screen Save Creating Purchase Orders for Consignment Materials You create a purchase order in order to replenish your consignment stores. You now need to couple your requisition that you created to a purchase order Logistics>Material Management>Pruchasing>Purchase Order>Create>Vendor Known. Enter following information: • Vendor Account Number Supplier where materials are to be ordered from. • Purchasing Organisation C001. • Purchasing Group Your Purchasing Organisation. • Item Category K. • Plant Your plant code • Storage location Your store Click : Ref. To PReq (Create with reference to purchase requisition.) Enter purchase requisition number. Enter Select line(s) of purchase requisition to be ordered. Click Adopt + Details Enter until all lines have been accepted. Save Posting Goods Receipt for Consignment Material Logistics>Material Management>Inventory Management>For Purchase Order. Enter following information. • Document Date • Posting Date • Movement Type 101 • Purchase Order Number • Plant • Storage Location Enter Select lines received. Adopt + Details Enter through all lines to accept it. Save Displaying Consignment Stock You can display the current stock of consignment material by: • Displaying the Consignment Stock Report • Displaying the Stock Overview • Displaying the Vendor Consignment Stock Displaying the Consignment Stock Report. You can display the Consignment Stock Report as follows: Logistics> Customer Functions > MM > Reports-Plant Stock > Special Stock > Vendor Consign Stock Enter the following data: • Plant (Compulsory) • Material • Vendor • Storage Location Execute (If all consignment stocks must be displayed, only enter plant code and execute) Displaying the Stock Overview In the stock overview you can display the consignment stock of a material for all vendors. In addition, all the other stock types (for example, own stock) are displayed. You can display the stock overview as follows: Logistics > Material Management > Inventory Management > Environment > Stock > Stock Overview Enter the following data: • Material • Plant • Storage Location Execute If consignment stock exists, the line Vendor consignment is displayed for the relevant storage location. Select this line to display detailed information on the consignment stock. Displaying the Vendor Consignment Stock This function allows you to display the consignment stocks of more than one material at the same time. You can display Vendor consignment stocks as follows: Logistics > Material Management > Inventory Management > Environment > Consignment > Consignment from Vendor > Stock Enter the following information: • Plant • Storage Location • Vendor (If specific Vendors stock is required) Execute Posting Goods Issues From Consignment Stock This function allows you to withdraw a material from the consignment stores for an account assignment object (for example shrink-wrap to a cost centre). Logistics > Material Management > Inventory Management > Goods Issue Enter the following information: • Movement Type 201 • Special Stock K • Plant • Storage Location Enter In the upper part of the screen, enter the account assignment object (for example the cost centre) and the Vendor. The vendor is required so that the system can determine the relevant stock and pricing data. In the lower part of the screen, enter the individual items (material number and quantity). Enter Save After the goods issue, the vendor is due the net value of the goods issue. Transferring Consignment Material into Own Stock This function allows you to withdraw consignment materials to own stock to be used in production (backflushing). Logistics > Material Management > Inventory Management > Transfer Posting Enter the following information: • Movement Type 411 • Special Stock K • Plant • Storage Location Enter In the upper part of the screen, enter the Vendor. Only enter a receiving storage location if the material should be stored in another storage location. In the lower part of the screen, enter the individual items (material number and quantity). Enter Save After the transfer posting, the vendor is due the net value of the transfer. Settling Consignment Liabilities Removing material from consignment stores of transferring material to your company’s own stock results in liabilities towards the vendor. You should settle these liabilities at regular intervals (for example: monthly). Consignment materials are settled without the vendor issuing an invoice, as the vendor company is unable to track withdrawals directly. The vendor can only manage its consignment stock by taking deliveries and payments into account. You can initiate payment for consignment withdrawals using the Invoice Verification application component. Logistics > Material Management > Invoice Verification > Invoice Verification > Further Processing > Settle Consignment/Pipeline Liabilities Enter following information: • Company Code 7050 • Vendor Account number • Plant • Document Date This is the date on which the original document was posted. • Posting Date This is the date on which the accounting document must be posted to GL. • Remove tick for Pipeline, only leaving consignment tick • Tick Display at the processing selection Execute You will now see a list of all settlements outstanding for this specific Vendor. In order to settle the liabilities: • Go back once with the green back button • Tick Settle at the processing selection Execute Liabilities will now be settled and posted to the Vendor Account. Vishal...

[Former Member]

Hi Seshidar

Vendor Consignment:

Consignment is functionality in MM-PUR wherein you purchase materials from the vendor on a consignment-basis. When the delivery comes, the materials, though will be stored in your warehouse, are still legally owned by the vendor until they are consumed, i.e. GI posting (this is the only time you will be liable to the vendor).

Prerequisites:

1. Maintain account determination for KNO & AKO.

T-code: OBYC

IMG menu path: IMG-> Materials Management-> Valuation & account assignment-> Account determination-> Account determination without wizard->

Configure automatic postings.

This is the IMG setting to be done for Consignment process.

Consignment procedure:

1. Create Consignment info record(ME11)

2. Create a Consignment PO with item category K (ME21N)

3. Goods receipt with mvt.type 101 spcl stock indicator K will be automatically populated (MIGO)

4. Transfer posting to own stock with mvt.type 411 K(MB1B)

5. Consignment settlement ( MRKO)

Thanks

Sri..

[Former Member]

Hi,

Consignment cycle:

Create Material in MM01

Create Vendor in XK01

Create consignment Info Record with the above material and vendor combination.

Create Purchase Order ( with item category k)

Goods Receipt with movement type 101K

Stock transfer to Own Stock with movement type 411 k

Goods Issue to direct consuption with movement type 201K

Consignment settlement through--MRKO

Thanks

NDS

[Former Member]

Hi

I have got error when am i doing MB1B( 411K)

Material value is not defined in info record..

then i goto change inforecord... but net price is "0.00" but it is in disable mode...

how can i change..

but when i was creeated inforecord... net price is maintaind... system has taken always zero...pls can u help in this issue...

regards

sesidhar

[Former Member]

Hey

Hv u maintained consignmenet info record?

In that purchasing data view maintain conditions?

Check it out.

Regards

Raman

[Former Member]

Hi

In pur data ... i have maintained condition PB00...5.Rs/KG...but error comes

regards

sesidhar

[Former Member]

for consignment cycle, first u will have to create consignment info record for the material. then follow the regular procedure with PO as Cost cnter and item category k. Then finally when u use the material, carry out settlement with t code MRKO.

[Former Member]

Hi

In consignment the vendor provides materials and stores them on our premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, you can also arrange with the vendor that you take over ownership of the remaining consignment material after a certain period of time.

For more info click below:

http://help.sap.com/saphelp_47x200/helpdata/en/4d/2b8ec943ad11d189410000e829fbbd/frameset.htm

Regards

Prasanna

Edited by: Prasanna Raju on Apr 7, 2009 11:15 AM