Introduction
Vendor Consignment is a process where supplier (vendor) provides material to purchaser and store in premises of the purchaser itself. Ownership of that material is lies in the hands of supplier although it is stored in purchaser premises.
We can say that the material remains in books of the vendor until withdrawn from consignment stock. Inventory in the hands of purchaser gets affected only when the stock gets transferred.
The supplier would not raise invoice initially, a purchaser will only pay after consumption
Key Features of Consignment Process
Consignment is a special procurement type in SAP
The purchaser will provide the space to vendor to store the material in his own premise.
The Purchaser is not responsible for stock.
Ownership and liability of stock remains in the hand of vendor.
Consignment material number is same as in the book of purchaser’s unrestricted stock.
Consignment stock is maintained as individual supplier or vendor level as there can be multiple parties for procurement.
Purchasing Info Record is mandatory to maintain for this process. Price of the consignment is also maintains in Info Record. Purchaser has to create the record with Consignment as a category.
Goods Receipt against consignment Purchase Order is non-valuated.
Goods Receipt happens at the price mention in Purchase Info Record.
After making Goods Receipt, stock still shows as Vendor Consignment stock.
When purchaser required the material, purchaser transfer quantity from vendor consignment stock to our own stock.
Purchaser will pay only for such transferred quantity.
The Vendor need not send invoice or bill for withdrawal quantity. An organization will settle the consignment liability
Vendor Consignment Process Basic Configuration Steps
Activate Purchase Info record for Info category as consignment
T-code: OMEV
· Configure Special Procurement type
Define Special Procurement Type
T-code: SPRO
SAP IMG Screen-> Production-> Material Requirement Planning-> Master Data-> Define
Special Procurement Type
Create Consignment Material Master
T-code: MM01- Create Consignment Material
SAP Easy Access-> Logistics-> Material Management-> Material Master-> Create Material Master
Create Purchase Infor Record
T-code: ME11
SAP Easy Access-> Logistics-> Material Management-> Purchasing-> Master Data-> Info Record-> Create
Create Purchase Requisition
T-code: ME51N
SAP Easy Access-> Logistics Execution-> Material Management-> Purchasing-> Purchase Requisition-> Create Purchase Requisition
Create Purchase Order with reference to Purchase Requisition
T-code: ME21N
SAP Easy Access-> Logistics-> Material Management-> Purchasing-> Create Purchase Order
Goods Receipt for Consignment Purchase Order
T-code: MIGO
SAP Easy Access-> Logistics-> Material Management-> Inventory Management-> Goods Movement-> Goods Receipt for Purchase Order
Goods Movement from Consignment Stock
Display Transfer Document
Stock Overview
T-code: MMBE
SAP Easy Access-> Logistics-> Material Management-> Inventory Management-> Environment-> Stock-> Stock Overview
Goods Issue from Consignment GR
T-code: MIGO
SAP Easy Access-> Logistics-> Material Management-> Inventory Management-> Goods Movement-> Goods Issue
Goods Issue from Consignment Stock
FI Control Document Stock Position
Rajesh Sharma
SAP MM/EWM Functional Consultant
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