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Consignment Process Overview and Steps

Vendor Consignment allows a vendor to store materials at a company's location while retaining ownership until the materials are withdrawn. Key aspects include consignment stock belonging to the vendor and not being valued until consumed. The process involves creating an info record for consignment, issuing a consignment purchase order, goods receipt, a transfer posting to move the stock to unrestricted inventory, and settlement to finalize ownership transfer.

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Vivek
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269 views5 pages

Consignment Process Overview and Steps

Vendor Consignment allows a vendor to store materials at a company's location while retaining ownership until the materials are withdrawn. Key aspects include consignment stock belonging to the vendor and not being valued until consumed. The process involves creating an info record for consignment, issuing a consignment purchase order, goods receipt, a transfer posting to move the stock to unrestricted inventory, and settlement to finalize ownership transfer.

Uploaded by

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

Vendor Consignment

Vendor Consignment is a process where material is available in organization store however it


still belongs to vendor. The vendor remains the legal owner of the material until the company
withdraw material from store.
Key points about Vendor Consignment:
• Consignment stock is a special kind of stock. The stock is stored at company storage
location but the responsibility belongs to vendor.

• Consignment stocks are non-valuated till the time it is consumed.

• Info record with info category consignment is required to create before creation of
consignment purchase order.

Basic configuration for consignment process


1. Activate consignment prices via info records
SPRO→SAP Ref IMG→ Material Management→ General Settings for Material
Management→ Activate consignment prices via info records
Double click: Active consignment prices via info record.

2. Maintain Message settings and communication method for your vendor


SPRO→ SAP Ref IMG→ Material Management→ Logistic Invoice Verification→
Message Determination→ Maintain Condition→ Change condition Output type: KONS
and key combination: company code and vendor.
• Enter company code and execute.
• Enter vendor select vendor line and click on communication.
• Enter output device LP01 check Print Immediately and save.
Steps in Consignment Process:
1. Create Info record with Info category Consignment (ME11)

2. Create Consignment PO(ME21N): Create purchase order with item category K.


3. Good Receipt (MIGO):

You can check the stock using MMBE.


4. Transfer Posting (MB1B):

Select movement type 411K. In this step we will transfer vendor consignment stock to
our unrestricted stock.
5. Consignment Settlement (MRKO):
1)Enter company code, plant and tick display & withdrawal not settle option and execute
this will show info status.

2)Go back select settle option and execute.

3)Once again go back and select display and settled withdrawal. Now the Info status is
settled.

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