Hi
Please read below:
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
Configuration:
you need to make sure that you have configured the system to use Consignment info records (depending on the SAP release).
You then need to make sure that you have created the correct output message that is created when the payment is made to the consignment vendor and allocated it to the correct output such as printer etc.
You also need to check the Automatic account assignment for managing the accounts to be used when stock is used (within the GBB event key for instance) there may be other AAA settings for the invoice as well.
regards
Srinivas
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