Movement Type 501

[Former Member]

Hi guys

I am using movement type 501 in MIGO to receive and issue material without reference to Purchase Order.

During material receipt, system is asking me to assign cost centre for the G/l account.Then the inventory account is debited and consumption account is credited.

At the time of material issue, system is not asking for cost centre and inventory account is credited and consumption account is debited.

During these transactions, nowhere the vendor account comes into picture.

Following are my questions:

1)Why is the system asking for cost centre at the time of GR when I am receiving material into warehouse (With Mvt Type 501, the material is posted into un-restricted stock).

2)How do I pay the vendor as no vendor account is hit during receipt and issue.

Finally, 3)Is it the right procedure to use 501? If not, Please tell me the purpose of Mvt Type 501 and what are the pre-conditions for using 501 Mvt.

Thanks

Prasad

[Former Member]

check the field selection for movement type 501 in transaction OMJJ.

Cost center must be specified as required entry for this movement type ..so its cost center at the time of GR.

by using 501, you cannot pay to the vendor because this movement is used for receiving any sample materials from vendors which are not meant for payment or to receive RTP through movement 501 M

receipt of materials from vendors should be through movemnt 101 that is with reference to PO which is normal receipt procedure in MM

[Former Member]

while doing MIGO, one can enter vendor in partner tab. what this field for? what is this vendor? can you please clarify.

[Former Member]

Hi,

this is simply a reference field (for who sent the RTP etc.) and does not influence any financial postings.

a 501 has NO VENDOR postings at all.

Steve B

[Former Member]

Hi,

501 is DEFINITELY NOT the movemnt type to use.

This is a special movement type that was designed to be used when there is NO procurement functionality in SAP being used and so it is NOT a movement type that should be used in the normal day to day business where the full MM (including purchasing) functionality is implemented.

there are some exceptions but these relate to special scenarios where things like packaging is received along with the items that were ordered and it was not mentioned on the PO.

Why are you not using Purchase Orders? this is the method of receiving stock from a vendor and then paying via an invoice. The 501 completely bypasses the vendor postings (because this would normally be handled via an interface when purchasing is not carried out on SAP).

Steve B