Consignment Vendor Stock Process

[Former Member]

Dear Gurus,

I've been studying the Consignment Procedure in the web and read a lot of documentation about it. However, I'm still puzzled on the proper steps. Sorry I'm new to MM.

Can you help me with the procedure? Tcode?

1. Create Consignment PO (K)

2. GR Consignment PO (101 K)

3. Upon consumption, transfer these stock to own WH via 411K.

No my next question is, how to proceed on the payments, invoicing, etc? Our closing period is at the end of the month.

Kindly help. Thank you!

[Former Member]

Hi,

The payment invoice from the settlement MRKO, after consumption.

Pls set PIR for price and tax code.

[Former Member]

Hi,

Tcodes.

ME11--InfoRecord

Me21n--PO with Item category as K

Migo---receive goods against PO with m. type 101 + k

MB54 - Consignment stock

Issue the goods Through MIGO-Goods issue 201 K..

MRKO - Settle consignment liabilities.

Consignment stocks are not included in the company stock valuation. It is normal, as the ownership is still with the vendor.

Please refer the below link.

Hope it helps you.

Thanks.

[Former Member]

Thank you all for the processes. I have conducted all steps until MRKO.

Last question please, what are the next steps after MRKO? Thanks!

[Former Member]

Hi,

The liabilities are settled in MRKO for certain period say month, quarter etc.

By running MRKO transaction, you can get the list of transactions for which invoices will be generated. This list can be used for reconciliation of your payment to your vendor.

Thanks.

[murugan_mgl]

U have create to Consignement info record.Tax code & price to be given.

Then do settlement thro MRKO

[Former Member]

Hi,

Steps of consignment process are....

Create consignment inforecord in ME11: Select infocategory as COSIGNMENT. From this PIR only price will be picked for cosignment transaction. Standard purchasing organization is needed for Consignment process.

Create a cosighnment PO in ME21N: Select item category as K. Here no invoice tab will be there. This is the difference from other normal PO.

Do MIGO. In this no accounting documents gets created. After consumption of copmonenets vis GI or transfer posting from cosighnment stock to our own stock by 411 K movement type the accounting documents gets created.

Do MRKO: Here will do periodic settlement to vendor. Remember there is no invoice concept in consignment process. Thanking you.

[Former Member]

Hi,

Follow the below steps to achieve consignment process..

Firstly create consignment inforecord in tcode me11 and its mandatory for consignment.

Create PO with Item category as K.

GR in tcode migo with 101 K

Check in tcode MMBE and you can look at your stock as consignment stock.

Goto MIGO-Goods issue 201 K and issue the goods for consumption.

Then make selttlement to vendor for the qty which is consumed through tcode MRKO.

Note-Here price comes into MRKO from your inforecord.

Thanks