Consignment Process steps

[Former Member]

Hi,

I want to know the detail process of consignment , starting from PO to vendor payment , this i want to congure in our system, can you explain or can i gt the links to do this all confugration setting as well as what are the transaction code for processing this.

regards,

zafar

[revi_wiratman]

The followings are the typical vendor consignment process steps:

1. Maintain consignment process through consignment info record (ME11)

2. Create PO with item category K (consignment)

3. Perform goods receipt against PO (movement 101 through MIGO or MB01) from step 2. This will place the material into consignment inventory. No account posting at this time since the material still belongs to the vendor.

4. Perform transfer posting (movement 411 special stock K through MB1B) on the material when the stock is ready to be transferred to company's own inventory. Alternatively, consignment stock can also be consumed by production order through movement 261 with special stock K.

5. Run transaction MRKO to settle consignment liability and pay the vendor. Think of this transaction as a self service invoice. The consignment settlement is based on the quantity of stock that was consumed (or transferred to company stock) in step 4.