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Vendor Consignment Process in SAP

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81 views8 pages

Vendor Consignment Process in SAP

Uploaded by

harikrishna12.yarramsetty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Vendor

Consignment
Process in SAP
Vendor Consignment is a process where suppliers provide materials and
stock them on the purchaser's premises, while retaining ownership until
the stock is withdrawn for use. This approach offers benefits in inventory
management and cash flow. The process is supported in SAP through
special configurations and transaction codes, enabling efficient tracking
and settlement of consignment stock.

by Hari Y
Key Process Design for Consignment

1 Special Procurement Type 2 Non-Valuated Stock


Consignment is designed as a special procurement Consignment stock is not valuated until consumed or
type in SAP, allowing for unique handling of these withdrawn, as it remains in the supplier's books.
materials.

3 Supplier-Level Maintenance 4 Purchasing Info Records


Consignment stock is maintained at the level of each The price of consignment is maintained in the
supplier, enabling sourcing from multiple parties. purchasing info records (PIR) of the info category
"Consignment".
Basic Configuration Steps

1 Activate Purchasing Info Record


Enable the Purchasing Info Record for the info category "Consignment".

2 Configure Special Procurement Type


Set up the special procurement type 10 for consignment.

3 Assign to Material Master


Assign the special procurement type to the relevant material master records.

4 Create Purchasing Info Record


Establish a purchasing info record (PIR) of the category "Consignment".

5 Maintain Account Assignment


Set up automatic account assignment for material posting, including consignment payables (KON), expense/revenue
from consumption (AKO), and offsetting entry for inventory posting (GBB – VBR).
Create Vendor Consignment Info Record

Access Transaction Enter Basic Data Specify Save Record


Consignment
Input the vendor, Review the entered
Details
Use transaction code material, purchasing information and save the
ME11 to create a vendor organization, and plant Enter the consignment info record.
consignment info record. information. information, including
pricing conditions.
Create Purchase Order and Goods Receipt
Create Purchase Order (ME21N) Goods Receipt (MIGO)

1. Enter vendor, material, quantity, and delivery date. 1. Select 'Goods Receipt' and reference the PO.

2. Select item category 'K' for Consignment. 2. Enter inbound delivery number (optional).

3. Review and save the purchase order. 3. Input necessary details and post the goods receipt.

4. Consignment stock is now available in the plant but still


owned by the vendor.
Stock Transfer and Settlement
Transfer Consignment Consignment Settlement Monitor Consignment
Stock (MB1B) (MRKO) Stock (MB54)
Use transaction MB1B to transfer Settle consignment using Use MB54 to monitor
consignment stock to own stock if transaction MRKO. Select consignment stock. Enter plant
needed. Select the transfer 'Settlement' for consignment, and storage location, then review
posting, enter movement type enter vendor and settlement stock levels and movements to
(e.g., 411), specify material, period, review items, and post the maintain optimal inventory
quantity, and plant details, then settlement. The system generates control.
post the transfer. an accounting document for
payment.
Return Consignment Stock
1 2 3 4

Access Select Return Enter Return Post Return


Transaction Delivery Details
Review the entered
Use transaction code Choose 'Return Specify the material information and post
MBRL to initiate the Delivery' option and and quantity to be the return delivery to
return process for reference the original returned to the vendor. update the system.
consignment stock. consignment purchase
order.
Reporting and Analysis

Stock Overview Purchase Order Financial Data Analysis


Analysis Settlements
Use transaction MB5B to Analyze the collected data
generate comprehensive Utilize transaction ME2K Generate reports on to optimize consignment
reports on stock levels and to review and analyze financial settlements stock management,
movements, providing a consignment purchase related to consignment improve vendor
clear overview of orders, tracking stock, ensuring accurate relationships, and enhance
consignment inventory procurement patterns and tracking of payments and overall inventory
status. vendor performance. obligations to vendors. efficiency.

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