Consignment

Price data for consignment material

Procurement of consignment material
Consignment stock movements
Settlement of consignment liabilities

SAP AG

SAP AG

TAMM10 4.0B

26-1

Consignment: Objectives
At the conclusion of this unit, you will be able to:
Post goods receipts into consignment stock
Display consignment stock
Post goods issues from consignment stock
Transfer consignment stock
Transfer consignment material to another stock
type
Settle consignment material and/or transfer
consignment stock to your company's own
stock
R

SAP AG

SAP AG

TAMM10 4.0B

26-2

Consignment: Business Scenario

Your enterprise has arranged for a vendor

to provide you with a particular quantity of

a material as consignment goods. The
material belongs to the vendor until you
remove some from consignment stores or
transfer the consignment stock into your
companys own valuated stock. Only then
does the vendor require payment. The
quantity consumed or withdrawn is settled
with the vendor at arranged intervals, for
example, monthly.

SAP AG

SAP AG

TAMM10 4.0B

26-3

Vendor Consignment Goods

Master data

Inventory
Management

Purchasing

Invoice
Verification

Stock

Invoice
B
B B C
A

Goods

?
=

Purchase
order

K Mat1

Consignment
price
Material/
vendor:

Price 0

Consignment
stores

Consignment
item

available
not valuated
GR

Accounting
GI
R

Price = 11,

SAP AG

The vendor provides goods that are stored in consignment stores. The vendor remains owner of the
material until you withdraw materials from the consignment stores.
The vendor is informed of material withdrawals on a regular basis.
The quantity withdrawn is invoiced at certain time intervals.

SAP AG

TAMM10 4.0B

26-4

Consignment Info Records

Consignment
price segment
IMG:
Activate
consignment
prices via
info records

Prices in foreign currency

Periodic prices

Consignment
info record
Conditions

Prices in any measure unit

Discounts,
Price-quantity-scales, ...
R

SAP AG

As of Release 4.0, the consignment price for procuring a consignment material from a vendor is stored
in a consignment info record.
In Release 4.0 consignment info records are being supported parallel to the old consignment price
segments. When you maintain the old consignment price segments, the system will point out the new
function in the purchasing menu. In the course of 4.0, the consignment price segments will have to be
converted to info records. You can convert them during 4.0 at any time in Customizing.
Using consignmnet info records, you can manage consignment prices in foreign currencies. For
consignmnent twithdrawals the purchase order currency of the vendor is decisive.
Consignment prices can be defined periodically.
You can specify the consignment price in the unit of measure you choose. The conversion factor is
defined in the info record.
You can also use conditions in Purchasing, as well as the definition of discounts and price quantity
scales.

SAP AG

TAMM10 4.0B

26-5

Consignment Price Segments

Material
MAT1
Consignment
vendor Miller

Plant 0001

Price:

Consignment
vendor Smith
Price:

10.00

L002

L001
Miller
Storage location

Smith

Quantity 100 Quantity 50

9.50

Miller

Smith

Quantity 100

Quantity 50
R

SAP AG

A vendor's consignment price for a material is valid plant-wide.

Consignment stocks of a material from one vendor are managed per storage location.
Your own stocks and consignment stocks of the same material in the same storage location are
managed separately, under one material number.
You can take a physical inventory of a vendor's consignment material.

SAP AG

TAMM10 4.0B

26-6

Consignment Items in Purchasing

Pur.Req.
K

Pur.order
no price
no conditions
no IR
GR required

K
K
K
Contract
K

SAP AG

A consignment item is a request to the vendor to deliver material to the consignment stores.
A separate item category is assigned to a consignment item in purchasing.
For consignment items, you must select a material for consignment that has a material type which
includes inventory management.
You cannot specify a purchase price or conditions for consignment items.
When posting an invoice receipt for consignment material, no reference is made to the purchase item.
Using a special procurement key (MRP data on a material), you can select a material in a plant for
consignment procurement.
You can specify consignment processing as a special procurement type for a quota arrangement item.

SAP AG

TAMM10 4.0B

26-7

Goods Receipt to Consignment Stock

Purchase
order

Vendor
or

blocked
Material
MAT1

Vendor

or

or

quality
inspection

unrestricted
use

quality
inspection

blocked

unrestricted
use

Valuated stock
Stock available for MRP

or

==
++

SAP AG

Goods receipts into your consignment stock can be entered with or without reference to a purchase
order.
The vendor's consignment price for a material must be determined before the goods receipt is posted.
A goods receipt to consignment stock does not change the valuated stock quantity, since the material
still belongs to the vendor.

SAP AG

TAMM10 4.0B

26-8

Transfer Postings within a Consignment Stock

Miller's consignment stocks

Material
MAT1
Storage
location
0001

blocked

quality
inspection

frei
unrestricted
verwendbar
use

Smith's consignment stocks

blocked

quality
inspection
unrestricted
use

unrestricted
use
Storage
location
0002

blocked

quality
inspection

SAP AG

Consignment stocks can be managed with the stock types "unrestricted-use stock", "quality inspection
stock", and "blocked stock".
Transfer postings are not relevant for valuation.

SAP AG

TAMM10 4.0B

26-9

Goods Issues from Consignment Stock

Miller's consignment stocks

Material

quality
inspection

blocked

MAT1
Storage
location
0001

blocked

unrestricted
use

unrestricted
use

unrestricted
use
WA

Production

quality
inspection

quality
inspection

blocked
Storage
location
0002

Your own stocks

Liabilities to
consignment
vendor

Consignment
price
Material: MAT1
Vendor: Miller
R

SAP AG

Goods issues can only be posted from unrestricted-use stock.

When transferring goods from the consignment stock into your own stock, you can specify a receiving
storage location. This also results in a stock transfer.
An issue of goods from consignment stocks results in a liability to the consignment vendor.

SAP AG

TAMM10 4.0B

26-10

Settlement of Consignment Consumption

Consignment
stock for
Miller

A
Material
Material

Vendor

MAT1
MAT1

01.May 97
Consignment
price
GR
01.Jan.- 31.May
GI
DEM 120,00
01.Jun.- 31.Dec. GI
DEM 125,00
GI

Liabilities
Liabilities
Liabilities

Invoice
consumption
from
consignment
stock
01.May - 30.Jun

30.Jun.97

Time

SAP AG

You can now settle consignment liabilities on a batch basis.

When processing online, you can define on the initial screen whether the withdrawals are to be settled or
whether the withdrawals to be settled are just to be listed.
You can inform the vendor periodically about issues from its consignment stocks. The list is restricted to
goods issues that have not yet been settled.
You enter the invoice for consignment liabilities without reference to a purchase order. Debits are posted
to the Liabilities from consignment stores G/L account, to which the credits were posted upon goods
issues from the consignment store.

SAP AG

TAMM10 4.0B

26-11

Consignment: Summary
In consignment processing, you order material
from a vendor, but the vendor remains owner
of the material even after it has been delivered.
Only when you withdraw material from the
consignment stores for consumption does it
become the property of your company.
Payment is made to the vendor for withdrawn
quantities at an agreed time interval (e.g.
monthly).

SAP AG

SAP AG

TAMM10 4.0B

26-12