on 12-10-2012 7:05 AM
Hi,
My client does not want to create Consignment PO and Post 101K. Though Consignment Info Record would be created.
Instead the material has to be inwarded using 501K and subsequently 411K would be posted and finally MRKO to settle the vendor payment.
I ran thru couple of cycles to test and it worked fine.
Is anybody using this process and is there any difference in accounting in 101K and 501K ??
Your inputs would be of lot of help.
Regards
Agree with Bijay, technically the purchasing process without PO looks fine but it will raise eyebrows of SOX auditors, better check with client's internal audit team purchasing without PO is a heavy area where a lot of frauds came in. Cheers.
http://www.bellwethercorp.com/Portals/56204/docs/Purch-Automation-SOX-Compliance(3).pdf
http://www.infosysblogs.com/supply-chain/2009/11/sarbanes_oxley_sox_and_the_pro.html
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If you use this option, the goods receipt data is transferred from the store electronically to the R/3 system. Item category K is assigned automatically.
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Hi,
Just to add above conversation without PO there will be no history maintained and it will be very difficult to track the Procurement process becuase most of the report you require Purchase Order Number.
Thanks and Regards
Murtuza Sadriwala
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Hi,
Its true in consignment process,the price picks from consignment info record only but you need a Purchasing document number which serve as committed document where in payment time(F-53)to vendor,finance team may enter Purchasing document number as reference before paying to vendor.
Also for reporting purpose in future,if any - you need a Purchasing document number!
Regards,
Biju K
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Hi,
If you are not using consignment PO, then you need to use 501 k mvt type and it will not create accounting entries since the stock still belongs to vendor.The 101 K also will not create accounting entries.
Hope, it helps...
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Hi,
The 101 K will not create accounting entries, and neither does 501 K.
In consignment scenario, the accounting document will only be created during goods issue(201 K)
or stock transfer(411 K).
Thanks and regards,
Polly
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