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

[Former Member · Accepted solution]

Dear,

1) Create Consignment inforecord in tcode ME11.

2) Create PO with Item category as "K" in Tcode ME21N.

3) DO the GRN with MVT 101 + K in tcode MIGO.

4) Transfer consignment stock to your own stock in MVT 411 K in tcode MIGO.

5) Do the Vendor Settlement in Tcode MRKO.

6) Clear the payment in tcode F-53 .

Regards

Utsav

[Former Member · Accepted solution]

Hi,

Is it necesary to create the info record, as i have a standard material from one vendor if we are purchasing the material as standard and from other vendor we want to purchase the material as consignment,

Also can we purchase the materail from a vendor how is having excise registration.

regards,

zafar

[Former Member · Accepted solution]

Dear Zafar,

For consignment Cycle consignment Info record is very much required.

Create consignment Info record for only that material which you are procuring from consignment Vendor.

Now Proceed with my all above suggested steps.

You will get the result.

Regards

Utsav

[Former Member · Accepted solution]

Dear Utsav,

Thanks for reply,

I wantto confirm that, suppose our vendor is having excise registration and as as a excise vendor company cannot ship the material without invoice from there premises in such cases what can be done is there any other method for this or we cannot purchase the material as a consignment if vendor is excise register.

regards,

zafar

[Former Member · Accepted solution]

Dear Zafar,

In consignment process Invoice or Settlement with consignment vendor will be done only once you transfer or issue stock from consignment tstock to your own stock.

So coming to your point If at all you are generating invoice at the time of shipment , then as per my knowledge you can not proceed with consignment scenario.

Hope this helps.

regards

Utsav

[Former Member · Accepted solution]

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[Former Member · Accepted solution]

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[Steven2023 · Accepted solution]

Good

[Former Member]

HI,

Left out points

Activate in OMEV

MRM1 u have to create the condition records.

[Former Member]

Hi

Consignment stock is special kind of stock .The stock is lying at your storage location but the responsibility vendor .Consignment stocks are not valuated. When the material is withdrawn it is valuated at the price of the respective vendor.

Vendor liability will arise at the moment when you are withdrawing the stock or transfer the stock to your own stock.

Info records with info category Consignment are created before creating the PO (you must maintain the consignment price for the vendor in an info record).The price is required for material valuation and accounting purposes.

Steps:

1.Assign Standard purchase org.to plant in Enterprise assignments (IMG)

2. Consignment Info record Activate in IMG material's management..

2. Create Info record for the material & vendor with info category consignment and maintain the price which will be used for the valuation and accounting entries.

2.You enter purchase requisitions for consignment materials in exactly the same way as for other materials.( item category K).

3.Creat Purchase Orders / Outline Agreements for Consignment Materials in the similar way (item category K).

4.Goods reciept with 101 as its item Cat K it will not create the AC doc.

5. you can transfer stock to your storage location or goods issue for the consumption whatever may the case with movement 411

6.Consignment materials are settled through MRKO... and payment will run in FI.

Regards,

Ninad Kshirsagar

[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.