Special Procurement Vendor Consignment
Consignment means that the material provided to you by a vendor is stored in your warehouse but is still owned by the vendor. A liability toward the vendor only arises when you withdraw material from the consignment stores.
To manage material in the consignment stores, you need the following master data:
- Material master record:If you manage the relevant material as your own material, you do not need to create a new material master record for the consignment material. By using the same material number, you can include the consignment stock in the own unrestricted-use stock of a material.
- Supplier master record
- Purchasing info record:An info record with the info category Consignment must be created for the combination of the consignment supplier and the material.
oracle cloud infrastructure training courses malaysia
Vendor Consignment in Purchasing
To create the consignment info record, use the transaction Create Info Record (ME11) or the corresponding SAP Fiori app. Create the info record for the standard purchasing organization of the plant in which the consignment stock is to be managed, and choose the info category Consignment. If there is just one purchasing organization for the plant, you do not need to use a standard purchasing organization.
Consignment prices can be determined in foreign currency, based on period, and in various units of measure. You can also take advantage of the purchasing condition technique, including the definition of discounts and price or quantity scales.
oracle database training courses malaysia
Consignment Order
To determine whether a material is procured for consignment stores, enter item category K (Consignment) in a PO.
The following characteristics apply to this item category:
- You must enter a material number.
- You cannot enter a PO price or conditions for the item.
- You require a GR for the item. The GR is posted in the vendor consignment stock and is nonvaluated.
- You cannot enter an invoice for the consignment item.
You can also use item category K in outline agreements and purchase requisitions.
If a material is always procured for the consignment stores of a plant, you can consider this with material requirements planning using a special procurement key in the material master record. This special procurement key means that the system creates a purchase requisition with item category K during the planning run for a demand for this material.
Vendor Consignment Stock
The material that you procure using vendor consignment is managed in a vendor-related special stock, K (consignment vendor). The special stock is updated at storage location level because the material is stored at your company facility.
The consignment stock is not valuated because it still belongs to the vendor. For the consignment stock, the stock types are unrestricted use, in quality inspection, and blocked. The consignment stock is considered when you determine the available stock of a material.
Consignment stock is displayed in various stock evaluations, for example:
- Display Stock Overview app and corresponding transaction Stock Overview (MMBE):In the stock overview, at storage location level, the total of all consignment stocks in this storage location is displayed. With a double-click on this special stock line you see a detailed overview of the consignment stock per consignment vendor.To start the transaction from the SAP Easy Access menu, choose Logistics→Material Management→Inventory Management→Environment→Stock→Stock Overview (MMBE).
- Consignment Stocks app and corresponding transaction Display Consignment Stocks (MB54):Unlike the stock overview, with this function, you can display consignment stocks for several materials at the same time. It is also possible to evaluate consignment stocks on a supplier-specific basis.To start the transaction from the SAP Easy Access menu, choose Logistics→Material Management→Inventory Management→Environment→Consignment→Consignment from Supplier→Stock (MB54).
- Stock – Multiple Material app:To select only supplier consignment stock in the app, select the predefined view Stock Value for Sales Supplier Consignment (K). In this view, the filter for the special stock type is already preset with K (Supplier Consignment).
Transfer Postings
For consignment stocks, you can also execute transfer postings and stock transfers. For these goods movements, you must specify the special stock indicator K and the vendor of the consignment material, in addition to the movement types for stock material. These goods movements are also nonvaluated.
GI from the Consignment Stock
You can only post a GI from unrestricted-use consignment stock for consumption. If the consignment material is in stock in quality inspection or in blocked stock, you must first post the consignment material to unrestricted-use stock. You can make withdrawals for samples and scrapping from all three stock types. When entering GIs, you must specify the special stock indicator K and the consignment vendor, in addition to the movement type in all goods movements.
You also have the option of adopting consignment stocks into your own stock. To do this, post a transfer posting with movement type (MvT) 411 and special stock indicator K. Unlike the GI for consumption, this transfer posting causes an increase in the valuated stock and no consumption posting.
Vendor Consignment in Invoice Verification
You must regularly clear liabilities towards the vendor that exist because of the issues from the vendor consignment stock. The consignment goods are settled without invoice receipts because the vendor cannot trace the goods withdrawal directly. The vendor can only manage the consignment stock with the deliveries from the vendor, and with your payments.
To settle consignment withdrawals, on the SAP Easy Access screen, choose Logistics→Materials Management→Logistics Invoice Verification→Automatic Settlement→Consignment and Pipeline Settlement (MRKO).
Obtain a report with which you can display settled and nonsettled consignment withdrawals and settle the nonsettled withdrawals. Possible selection criteria include company code, plant, vendor, material, document date, posting date of the withdrawal, and the material document number.
The system creates a message with message type KONS, in addition to the settlement document, so that you can inform the vendor about the settled withdrawals and the credit memo amount.
Leave a Reply