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Which is difference between Pipeline and Consignment..

Hello All...

I need your help... Can you help me to understand the difference between Pipeline and Consignment?

Many thanks and I appreciate your Help and comments!

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3 Answers

  • author's profile photo Former Member
    Former Member
    Posted on Jul 19, 2011 at 09:45 PM

    Hi,

    Vendor Consignment : 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.

    A pipeline material is a material that enters the production process directly from a pipeline (for example, oil), from a pipe (for example, mains water), or via a cable (for example, electricity), and can be consumed. Pipeline materials are represented by the material type PIPE.

    They are not stored and they are not managed in inventory management. No physical inventory is performed.

    You can only post withdrawals for this material using account assignment.

    Posting withdrawals creates liabilities to the vendor from whom the pipeline material is obtained. These liabilities are settled periodically.

    Thanks

    Chandru

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 20, 2011 at 03:34 AM

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    A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity.

    Depending on the system configuration, a material can be withdrawn only from the pipeline or, in addition to the pipeline, normal stocks of the material can also be managed.

    STEPS TO MAINTAIN PIPELINE MATERIAL

    1. You can create a material with PIPE material type or else you can use any material type but that should allow pipeline process.

    2. You should have Inforecord for the material with valid conditions, price will pick only from inforecord.

    3. If requied you can maintains ource list or else you can select during goods issue.

    4. From the Inventory Management menu, choose Goods movement ® Goods issue.

    Maintain the data on the initial screen. Choose Movement type ® Consumption ® To cost center (or To order, To network, All account assignments) ® From pipeline (Movement types : 201 P, 261 P, 281 P, or 291 P)

    5. On the collective entry screen, enter the account assignment. Enter the items.

    You do not have to enter the vendor as this will be found automatically by the system.

    If more than one vendor is possible, a pop-up window appears with a list of pipeline vendors, from which you can select the vendor you require.

    Post the goods movement.

    we can not stock pipeline material. It is readily available. directlly it is avilable at cost center. you need to pay for that consumption

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  • Posted on Jul 20, 2011 at 03:48 AM

    Hi,

    The accounting entries almost similar in both process.

    Pipeline Process material(which is available very much) flows directly into the production process from a pipeline (for example, oil), from a pipe (for example, tap water), or similar example electricity or natural gas in pipe line. A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity.

    Consignment process material supplied by vendor & you keep them in your company premises , but donu2019t valuate material stock. Only when goods are withdrawn from your consignment store, are you liable to your vendor for your payment.

    Regards,

    Biju K

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