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.