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8/24/2021, , SAP Material Management: Consignment Process in SAP MM, More, , [email protected], , Dashboard, , Sign Out, , SAP Material Management, Friday, June 29, 2018, , Consignment Process in SAP MM, In Consignment Process, the vendor provides material and stores them on the Company, premises. The vendor remains the legal owner of the material until the Company withdraw, materials from the Consignment stores. Only then does the Vendor requires 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., In this Consignment Process, we will not create purchasing document for the vendor, vendor, himself send the material to our plant, though the material is available to our plant, the, responsibility and ownership of the material is of vendor. A liability only arises when the material, withdrawal (consumption) is posted in the system from Consignment Stock., We don't write price in the Consignment Purchase Order. The price is taken from the, Consignment Info Record., Consignment Stock is the special kind of stock. The stock is lying at the Company Storage, Location but the responsibility belongs to vendor., Consignment Stock are not valuated. When the material is withdrawn it is valuated at the price of, the respective vendor from Consignment info record., , About Me, , RitaB, View my complete profile, , Blog Archive, , ▼, ▼ 2018 (20), ►, ► August (3), ►, ► July (7), ▼, ▼ June (10), Consignment Process in SAP MM, Import Procurement Process in SAP MM, Master Data in SAP MM, Organizational Structures of SAP MM, Subcontracting Process in SAP MM after, GST, Integration of SAP MM with Other, Modules/ Main Com..., Procurement for Stock vs. Procurement, for Direct C..., Procurement Cycle in SAP MM, Material Management, , Info records with info category Consignment is required to create before creation of Consignment, Purchase Order. Here maintain the Price and Tax Code mandatory in the Info Records for, material against vendor., , Subcontracting in Purchasing SAP MM, , Configuration required for Consignment Process:, - Assign standard purchase organization to Plant (T. Code - OMKI), SPRO path > SAP reference IMG > Enterprise Structure > Assignment > Materials Management, > Assign Standard Purchasing Organization to Plant, - Activate the Consignment Info Record (T. Code - OMEV), SPRO Path > SAP reference IMG > Mateirals Management > General Settings for Material, Management > Activate Consignment Prices via Info Records, Consignment Process Step by Step:, 1. Create Consignment Info Records (T. Code - ME11), Create the Consignment Info Record using Info Type Consignment. Maintain the Price and Tax, Code which are mandatory in the Info Record, 2. Create Consignment Purchase Order (T. Code - ME21N), Create Consignment Purchase Order with Item Category K against the vendor. Here we not, maintain the price, it will automatically pick from the Consignment Info Record. Conditions and, Invoice Tab are not available in the item level at the Consignment PO., 3. Post Goods Receipt (T. Code - MIGO), Post Goods Receipt against Consignment PO using 101 K Mov. Type (GR for Consign. Stock),, this will update the Consignment stock of the vendor. After Goods Receipt, we can see the stock, of the material using T. Code MMBE, the stock of the material shows in a Consignment Stock., No Account Posting at this time since the material still belongs to the vendor., We can also enter the Goods Receipt without Purchase Order in the Consignment stores using, Transaction MB1C/ MIGO with 501+K Movement Type., And for initial update of Stock for Consignment using Transaction MB1C/ MIGO with 561+K, Movement Type., To view Consignment Stock for vendor use T. Code MB54, 4. Transfer Posting (T. Code - MB1B/ MIGO), , sapmaterialmanagementreadstudyexplore.blogspot.com/2018/06/consignment-process-in-sap-mm.html, , 1/3

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8/24/2021, , SAP Material Management: Consignment Process in SAP MM, Perform Transfer Posting manually using Mov Type 411 Special Stock K (without reference of, PO) on the material when the stock is ready to be transferred to company own's inventory. This, Transfer Posting deduct (consume) the stock from the Vendor Consignment Stock and update the, Company own Stock. We can view the stock from T. Code MMBE., Alternatively, Consignment stock can also be consumed by Production Order using 261 K Mov., Type., Accounting Entries:, Inventory Account (BSX), Dr., Consignment Liabilities (KON), Cr., 5. Consignment Settlement (T. Coder - MRKO), Run the Transaction MRKO to settle Consignment liability and pay the vendor. Think of this, transaction is the self service invoice. The Consignment settlement is based on the quantity of, stock which was consumed by Company. After settlement, the system will generate the Invoice, Document., First, we choose to Processing "Display" the available Document for settlement and select, "Withdrawals not Settled" from Display options, then the information text is "Not Settled", Go Back and select the Processing "Settle" and select "Withdrawals not Settled" from Display, options and Execute, this will create the Invoice Document and information text is "Document, Created", Go Back and choose Processing "Display" and "Settled withdrawals" from Display options and, Execute, then the Information Text is "Settled", Accounting Entries, Consignment Liability, Vendor Account, , Dr., Cr., , Consignment settlement is not connected to the purchasing information system, because the, purchase order history is not updated during consignment settlements., Cancelling Consignment Document, Cancel the Inventory Document (Doc. created using 411+K) in the Inventory Management and, start Consignment settlement. The system will generates the Credit Memo for the returned, document., To include the cash discount in the accounts, include these in the consignment price. This, ensures that the cash discount is implicitly posted during the goods withdrawal and settlement., Delivery costs cannot be settled., The Consignment liability account cannot be flagged as Post automatically only and must not be, defined as a Reconciliation Account., Note: Consignment settlement cannot be performed simultaneously by several users. The, material documents are not blocked during settlement, which means duplicate settlement, documents can be created., , Posted by RitaB at 12:22 AM, Labels: Consignment Process, Consignment Procurement, SAP MM, Vendor Consignment Process, , 4 comments:, Unknown May 3, 2019 at 8:59 PM, very informative., Keep it up., Reply, Replies, dhanuesh August 10, 2021 at 11:47 PM, Looking for the best SAP MM Training in Bangalore, then don't delay join IntelliMindz, SAP MM Training in Bangalore. Join our SAP MM training to get hands-on training and, practice in SAP MM Software. Any Queries call @ 9655877677. IntelliMindz is the best, IT Training Institute in Bangalore with placement, offering 200 and more software, courses with 100% Placement Assistance., SAP MM Course in Bangalore, SAP MM Course in Chennai, SAP MM Online Course, Reply, , Unknown September 25, 2019 at 2:53 AM, Thanks a lot, , sapmaterialmanagementreadstudyexplore.blogspot.com/2018/06/consignment-process-in-sap-mm.html, , 2/3

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8/24/2021, , SAP Material Management: Consignment Process in SAP MM, Reply, , Unknown October 13, 2019 at 8:07 AM, Good information, Reply, , Enter your comment..., , Comment as:, , Publish, , sam (Google), , Sign out, , Notify me, , Preview, , Newer Post, , Home, , Older Post, , Subscribe to: Post Comments (Atom), , Simple theme. Powered by Blogger., , sapmaterialmanagementreadstudyexplore.blogspot.com/2018/06/consignment-process-in-sap-mm.html, , 3/3