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consignment

Hello ,

Pl explain What is meant by consignment stock?

Ashu

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    author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:22 AM

    Hi Ashu ,

    consigment stock means :

    The stock supplied by the vendor is in the companies premises with the company having no liability for the same. The liability for the company will only be affected when the goods are issued from the consignment stock for use.

    regards

    Girish

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:24 AM

    Defintion - Consignment Stock: The stock supplied by the vendor is in the companies premises with the company having no liability for the same. The liability for the company will only be affected when the goods are issued from the consignment stock for use.

    Consignment Stock and Steps involved in consignment Cycle

    Creation - Consignment Stock: Everything is the same as a normal PR or PO, except: Enter the item category u201CKu201D for the consignment item. This ensures that the Goods Receipt is posted to the consignment stores and an invoice receipt cannot be generated for the item. Also, do not enter a net price.

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:24 AM

    Hi,

    Refer to the below link:

    http://help.sap.com/saphelp_erp2005/helpdata/en/c6/af3c415e5dde2be10000000a1550b0/content.htm

    If you need to manage vendor consignment stocks, then in ME11, create a consignment info-record & while placing PO specify K as Item Category & the details will be read from the consignement info-record.

    Hope the above helps.

    Regards,

    Vivek

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:24 AM

    Hi

    Consignement Stock means Vendor stock physically lying in the companies premises Eg: Oil.

    Payment will done, based on our consumption

    Regards

    Prasanna

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:29 AM

    Hi Ashu

    Consignment stocks : Explained with an example

    During the course of business dealing , it may so be agreed between the Vendor and the company that the vendor would keep the goods in the compmaies premises without any liability arising out of such stocks on the company.

    To give an example: Construction of a building: Bags of cement which belong to the cement vendor are kept on the construction site which belong to the constructor. Their is no liablity on the constructor on such a storage of cement bags. Only when the consumption starts would the ownership shift from the Vendor to the company using the bags.

    Regards

    Vikrant

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 06:30 AM

    Hello Ashutosh,

    Consignment stock is the stock of material which lies in your premices / stores but does not belongs to you. Vendor stores that material in ur area but still it belongs to vendor. so it wont be calculated in ur inventory stock or it wont be valuated.

    If you want to use this material then first you need to move it to unrestricted stock then only you can use that material.

    Hope it will do.

    Regards,

    Subhash

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  • Posted on Mar 30, 2009 at 06:54 AM

    Hi,

    Consignment Stock:

    You can order goods from external vendors as vendor consignment goods. You carry the goods in the vendor consignment stock in your site and therefore they remain the property of the external vendor (special stock manager) and do not belong to your valuated stock.

    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.

    Hope this helps

    AMIT

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  • Posted on Mar 30, 2009 at 07:12 AM

    Hi,

    Consignment stock means, stocks supplyed by the Vendor for your use .These will be kept at your premisis with a special stock identification vendor consignment and unless and untill you do not use them they will not part of your company stocks.Vendor bills you to those materials which has been used by you.These will be settled at MRKO.

    Regards,

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 30, 2009 at 08:57 AM

    Consignment stocks are special stocks defined in SAP. 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.

    Consignment stocks of the same material from different vendors can be managed independently from one another and at the price of the individual vendors. Consignment stocks are not valuated. When the material is withdrawn it is valuated at the price of the respective vendor.

    A consignment material can be allocated to one of three stock types:

    Unrestricted-use stock

    Quality inspection stock

    Blocked stock

    You can make transfer postings between these three stock types.

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