Special Procurements Vendor Consignment Scenario
- Consignment is functionality in MM purchasing, when you purchase the material from vendor on consignment basis.
- We will provide the premises to 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 in to our company own stock.
- Vendor need not send the invoice or bill for with drawl quantity. Company will settle his consignment liabilities
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 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 ‘New Entries’ button
Enter the Following
Plant: BPL1 - Birla Plant 1
Spl. Proc. Type: 10 - Consignments
Procurement type: F – External procurement
Spl. Proc. K – consignment
Click Save and come back
3. Maintain Message settings and communication method for you vendor
SPRO -> Logistic Invoice Verification -> Message Determination -> Maintain Conditions -. Change Conditions -> Output Type : KONS and key combination is: company code and vendor.
Steps in Consignment:
1. Create or change the material master (MM01 or MM02)
Select MRP1 view
- MRP type \: ND
- Spl. Procurement : 10 for consignment
2. Create Info Record (ME11), with info category as ‘consignment’
Note: Maintain Tax Code in 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 a 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:
Check consignment select Display
Note: First Select Display radio button and execute it. It is success full then select the
radio button to settle and execute it again.