Vendor Consignment Scenario In Sap MM

22 September, 2020


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Special Procurements Vendor Consignment Scenario

Vendor Consignment

Consignment is functionality in SAP MM purchasing when you purchase the material from the vendor on a consignment basis.

We will provide the premises to the vendor in our stores; however, we are not responsible for the stock.

The stock is legally owned by the vendor only - When the delivery comes, we will make a GR even then, stock still legally by the vendor. If you look at our stock status, it shows as ‘Vendor Consignment’ stock.

As and when we want the material, whatever the quantity it is we will simply transfer the vendor consignment stock into our company's own stock.

The vendor need not send the invoice or bill for with drawl quantity. The company will settle his consignment liabilities

IMG Settings:

1. Activate consignment prices via info records

SPRO -> Material Management -> General Settings for Material Management -> Activate consignment prices via info records (OMEV)

Double click: Activate consignment prices via info records Select the Radio button as below


Click Save and come back

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2. Define special procurement types

SPRO -> Material Management -> Consumption-Based Planning -> Master Data -> Define Special Procurement Types

Click the ‘New Entries’ button Enter the Following Plant: BPL1 - Birla Plant 1 Spl. Proc. Type: 10 - Consignments

Procurement type: F – External procurement

Spl. Proc.

Spl. Proc. K – consignment Click Save and come back

3. Maintain Message settings and communication method for your vendor

SPRO -> Logistic Invoice Verification -> Message Determination -> Maintain Conditions -. Change Conditions -> Output Type: KONS and the key combination are: company code and vendor.

Steps in Consignment: 1. Create or change the material master (MM01 or MM02)

Select MRP1 view

MRP Type: ND

MRP2 view

Spl. Procurement: 10 for consignment

2. Create Info Record (ME11), with info category as ‘consignment’

Note: Maintain Tax Code in the purchase data view

3. Create Purchase Order (ME21N) with item category as ‘K’

4. Take the receipt of the material i.e. GR (MIGO)

  • Here as proof of action one material document is created
  • However, no Accounting document creates

5. Now the stock status (MMBE) shows that the material now as ‘Vendor Consignment’

6. Transfer the stock to company own stock (MB1B – Mvt 411K)

 a. Now as a proof of action one material document is created   

 b. Here Accounting document creates with the following a/cs

i. A/c payable – Consignment sale -ve - 169900

ii. Inventory- Raw Material A/c +ve - 300000

7. Consignment liabilities can be settled in MRKO Enter the following:

Company code: Vendor: Plant: Material Material Document:

Check Capture consignment select Capture Display

Note: First Select the Display radio button and execute it. It is success full then select the radio button to settle and execute it again.

To Get In-Depth Knowledge, Check Out Related Articles:

Vendor Master In SAP MM


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