MRKO: pipeline and consignment liabilities settlement

[Former Member]

Dear MM experts,

Please explain me what is the use of MRKO transaction, normally for all po's through MIRO we will do the invoice verification but in consignment order and pipeline what is the process to pay the vendor??

thanks in advance,

Kind regards,

Govardhan,V.

[Former Member]

Hi All,

Material is stored at your company premises payment become due for the quantities used it is called Consignment Material. Eg: Retail Stores like Metro, Big Bazaar, etc. There you can find the Consumer products from this company HLL, ITC, Sony, Samsung, LG, etc. for that goods the payment will be given after the goods a being sold to the Customer.

For Pipeline you are using the goods like Electricity, Gas & Oil this are the goods that are being used by the company for production & maintenance. Settlement will be made monthly or bi-monthly for the goods consumed.

So both Consignment & Pipeline Material are being paid after the goods are consumed using MRKO transaction.

I thing this will solve your query.

Regards,

Pherasath

[Former Member]

Hi

Consignment Material is stored at your company premises but belongs to a vendor. The vendor supplies these goods so that they are available to you at any time, but does not initially invoice you for the goods. Only when you have withdrawn stock does payment become due for the quantities used.

Removing material from consignment stores or transferring material to your company’s own stock results in liabilities towards the vendor. You should settle these liabilities at regular intervals.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.

U will settle the vendor for pipeline and consignment using MRKO transaction.

MRKO : http://help.sap.com/saphelp_47x200/helpdata/en/56/222138c2ebcc46e10000009b38f842/content.htm

http://help.sap.com/saphelp_47x200/helpdata/en/33/222138c2ebcc46e10000009b38f842/frameset.htm

http://help.sap.com/saphelp_47x200/helpdata/en/71/042d385ab91065e10000009b38f842/content.htm

https://warranty.rotax.com/sap/its/mimes/system/99/en/info/docu_general.html

Hope this will helps u

Ravi