Vendor Consignment

In Consignment processing, the vendor provides materials and stores them on company’s premises. The vendor
remains the legal owner of the material until company withdrawal materials from the consignment stores. Only then
does the vendor require payment. The invoice is due at set periods of time. For example, Monthly

Configuration and Pre-requisites:

Activate Consignment Prices via Info Records

Path: SPRO – IMG- Materials Management -General Settings for Materials Management - Activate Consignment
Prices via Info Records

Accounting OBYC Settings

Message Determination in LIV
Path: SPRO – IMG- Materials Management -Logistics Invoice Verification -Message Determination -Maintain
Conditions (MRM1)

 Create a Condition record

Material Master data:

Consignment Info record:

 T-code – ME11
  Mandatory to maintain info record

Source List:
 T-code : ME01
Process Flow:

Create Purchase Order

 T-code: ME21N
 Item Category – K
 No conditions will be displayed
Goods Receipt
 T-code: MIGO
 No Accounting entries will be posted

 Stock Overview - MMBE

Material Withdrawal from Vendor Consignment

 T-code: MIGO
 Accounting Postings will be generated
 Stock Overview
Invoice Settlement:
 T-Code: MRKO