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Vendor Consignment

Former Member
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Hi All

Please explain about the configuration and business process of vendor consignment

Regards

Jagadish

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
0 Kudos

hi

Consignment is a functionality in MM-PUR wherein you purchase materials from the vendor on a consignment-basis. When the delivery comes, the materials, though will be stored in your warehouse, are still legally owned by the vendor until they are consumed, i.e. GI posting (this is the only time you will be liable to the vendor).

You just have to make sure, you set up the following to run this function perfectly:

1. Maintain account determination

KNO G/L acct: GR/IR Clearing

AKO G/L acct: Inventory account

2. Check field status compatibility at G/L account, posting keys in the IMG or run SE38/RM07CUFA to display fields compatibilities.

3. Set up output condition type KONS.

4. On the material master record, set special procurement indicator to 10 (consignment) at MRP2 view.

5. Create Info record for the consigned material and vendor-consignor. Be sure the info category is Consignment.

regards

ravikant dewangan

Answers (3)

Answers (3)

Former Member
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Please guide me as to how to bring material into our plant unrestricted stock and how to do vendor settlement

regards

Jagadish

Edited by: Jagadish Kumar on Jun 25, 2008 10:13 AM

pankaj_singh9
Active Contributor
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Hi,

After GR of Material in consignment stock, go to

1. MIGO / MB1B - Use Movenent type 411 K to transfer consignment stock to own un-restricted stock

2. MRKO - Take this material document of transfer posting and settle consignment liabilities

Prerequisite: - MRM1 - Maitain condiiton record for output type KONS

former_member192897
Active Contributor
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Hi Jagadish,

1) Create a Purchase Information Record with Consignment category / type.

Maintain the Net price and tax code in PIR.

2) Create a Purchase Order with ME21N and save.

3) Make a GR for the Material

4) Bring the Consignment stock into Unrestricted Stock using MB1B trxn code use 411K.

5) Maintain condition record for Output in MRM1 trxn code.

6) Settle the Vendor Consignment in MRKO trxn code. Just give Vendor and select the Consignment option and in Processing tab select display opton and execute.

7) Once you confirm that the MRKO trxn is showing correct information in diaplay mode, then change processing mode to Settle mode and execute.

Revert back in case any doubts.

Reg,

Ashok

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BijayKumarBarik
Active Contributor
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Hi,

With above I m adding few points

Vendor provides materials & stores them on your company premises. The vendor remains the legal owner of the material until you withdraw material from consignment stores. You need maintaion all like ME11,ME01 and account assignemnt for KON in OBYC.The steps ME51,ME21,MIGO,MB1A,MRKO

The Accounting Generated After GR/GI/Settlement are:

1.Goods Receipt

No Accounting Movement

2.Goods Issue

Consumption A/C: DR

Consignment (Liability Account ) Payable: CR

3.Consignment Settlement

Consignment (Liability Account ) Payable: DR

Vendor Account A/C: CR

Regards,

Biju K

Former Member
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