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consignment, contract, pipeline, third-party.

Hi all,

I am new to SAP. can any one explain the below topics with examples.

1. consignment,

2. contract,

3. pipeline,

4 .third-party.

thanks in advance,


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4 Answers

  • Best Answer
    Posted on Jul 19, 2008 at 04:40 PM


    As the topics are vast so have provided the below links for your help, pls do follow it:

    For Consignment:

    For contract:

    For Pipeline:

    For Third-party:

    Hope it helps...

    If any further queries pls donot hesitate..




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  • Posted on Jul 19, 2008 at 05:22 PM


    RTP - Returnable transport packaging (RTP) is a multi-trip packaging medium (for example, pallets or containers) in which goods can be transported more than once between vendors and customers.

    Returnable transport packaging from a vendor that is stored at a location on your premises is managed as special stock and clearly assigned as belonging to the vendor. It is the property of the vendor and is therefore not included in the customeru2019s valuated stock.

    What Type of Stock is This?

    RTP stocks from vendors are externally owned and are not valuated.

    RTP stock is always unrestricted-use stock. The stock can neither be in quality inspection nor blocked

    1.We can use any material for RTP or we can use LEIH material type for a material of RTP type.

    2.During GR we do it with respect to PO so the material ordered within the PO displays as default. In order to get the RTP material we add a separate material with 501 M mvt type. The order material will have 101 mvt type.

    3Initial Entry for RTP is also possible with MB1C 561 M.

    4.Transfer posting of RTP material from one storage location to another can also me done with the mvt type 311 M.

    5.You post a return with reversal movement types 502 M and 562 M.

    Consignments - In consignment processing, the vendor provides materials and stores them on your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, you can also arrange with the vendor that you take over ownership of the remaining consignment material after a certain period of time.

    1.Created a material as GENERAL1 u2013 MM01

    2.Created a Vendor as GENERAL u2013 XK01

    3.Created a consignment info record for the above material and vendor combination u2013 ME11.

    4.Created a PR with ITEM CATEGORY as K u2013 Consignments. u2013 ME51N

    5.Created a PO wrt this PR u2013 ME21N

    6.GR can be done with respect to PO or without PO

    7.Transferring Consignment stock to Own Stock = MB1B 411 K

    8.Consignment Settlements can be done by MRKO

    Pipeline - A pipeline material is a material that flows directly into the production process from a pipeline (for example, oil), from a pipe (for example, tap water), or from another similar source (for example, electricity).

    A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity.

    1. Creating a Pipeline Material - MM01 - PIPE

    2. Creating a Pipeline Info Record - ME11

    3. Maintaining the Source List - ME01

    4. Posting Goods Issue from the Pipeline - MIGO

    5. Settling Pipeline Liabilities - MRKO

    Third Party - In third-party processing, you place a purchase order with a vendor to deliver goods or perform a service for a third party (for example, for a customer).

    This means that your company does not deliver the material. You forward the order to an external vendor instead, who then sends the material directly to the customer and invoices you.

    Refer this link

    Thanks & Regards,


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  • author's profile photo Former Member
    Former Member
    Posted on Jul 19, 2008 at 04:48 PM

    cnsignment: in simnple terms example: coffee vending this exactly what happens we are having consignment with vendor for giving services.we dont buy this machine but we are using its services.

    contract:a mutual agreement with vendor for prices...this will remain for some period of time

    pipeline: the gas supply..we cannot check how much gas is been used ...but we check the inlet and outlet timing given to customer....there are many such foootball statium continuosly ac flow is gowing so they chek how much is used in supply is constant....



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  • author's profile photo Former Member
    Former Member
    Posted on Jul 23, 2008 at 08:40 AM

    thanks a lot

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