Consignement - PO

[Former Member]

Hi Gurus,

Can any body guide me about the Consignment PO? How it is different from the standard PO? Also guide me about the G/R, IR for the Consignment PO?

Thanks and Regards,

Monica

[BijayKumarBarik · Accepted solution]

Hi,

Simply you can say Consignment Stock means your Vendor stores there material in your company premises.When ever you want you can use it as per your requirement. Unless you consumed, It is regarded as non -valuated stock. PO can be created with item category K( ME21N)

The steps are:

1. Consigment info record(ME11),

2.Souce List(ME01)

3.PO with item category K( ME21N)

4.GR WRT to PO (stock will be shown as material provided by Vendor)

5.Consuption Posting (Creates Invoice automatically)

6.Invoice Verification in MRKO.

7.Payment to vendor(F-53)

The account entries in GR,GI and IR are as follow;

Goods Receipt:

-

---

No Accounting Documents

Goods Issues:

-

---

Consumption A/C: DR,

Consignment(Liability Account ) Payable: CR,

Consignment Settlement:

-

---

Consignment (Liability Account )Payable: DR,

Vendor Account A/C: CR

If helpful to you and then reward.

Regards,

Biju K

[Former Member]

Vikrama had given right answer.

In add to that u can directly consume material from consignment stock.

This has restriction in India because of Excise laws

[Former Member]

Hi Monica,

In addition to the answers it is compulsory to have consignement info record. Price in the PO will be picked up from Info record.

While you are creating PO you can notice net price will be having the value of 0 once you have given item category "K".

Regards,

Ramesh

[Former Member]

Hi Monioca,

Plz gothrough the below link:

http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b8ec943ad11d189410000e829fbbd/frameset.htm

Here the process is explained clearly. If you come accross any issues again plz let me know.

Reward if useful

Chandru.

Message was edited by:

CHANDRAMOHAN NATARAJAN

[Former Member]

Consignment PO are created when you want the vendor stocks made available in your own plant. i.e. you will not be the owner of the stocks untill and unless you remove the stocks from vendor consignment to your own stock by doing transfer posting.

consignment PO will be creted wusing item category K, and when you do the goods reciept with 101 the special stock indicator is set to K which means these stocks are owned by the vendor by this time there is no Accounting docs are created.

when you remove the stocks by transfer posting to your own stock then you are liable to pay the vendor only for the qty you have removed.

these types of PO's are generally created when you require the material frequently.

hope this helps