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Vendor Consignment settlement with invoice

Hello all,

As far as I can understand the vendor consignment process, settlement is carried out periodically through MRKO transaction, culminating in an automatic payment to the vendor.

Our customer works like this:

- after consuming the material in consignment, the customer will send a recap to the vendor

- the vendor will issue an invoice based on recap, present it to the customer that will issue payment for the said invoice

This leads to a problem:

Since the vendor has no idea what the customer did, customer's system through MRKO takes care of the settlement without invoice.

The requirement is that settlement be done with invoice from vendor.

It would be like a consignment flow ending with a MIRO instead of MRKO.

Any suggestions on how to set this up?

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2 Answers

  • Posted on Jan 15, 2016 at 12:53 PM

    You can't use MIRO process for consignment scenario. It has to be done from MRKO only and settlement is only possible when you will withdrawn material from consignment stock. Please review this document Vendor Consignment Process

    Also SAP has stated that "Consignment materials are settled without the vendor issuing an invoice, as the vendor company is unable to track withdrawals directly. The vendor can only manage its consignment stock by taking deliveries and payments into account." in this SAP help document Settling consignment liabilities - Managing Special Stocks (MM-IM) - SAP Library

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  • Posted on Jan 15, 2016 at 11:20 AM

    Hi,

    As material consumed- you can carry out MRKO for vendor consignment and later any price difference,if any - you can carry out subsequent debit or subsequent credit in MIRO for your vendor.

    Regards,

    Biju K

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