Wikipedia offers a very simple definition for consignment. It is a process of placing a thing in the hand of another, but retaining the ownership until the goods are sold or used. In SAP consignment business process can be implemented very easily using the following steps.
- Activate Consignment inforecords using tcode OMEV. This activates the consignment prices to be picked up using the consignment info records.
- configure a special procurement type using IMG->Production->MRP->Master Data->Define special procurement type.
- In OBYC configure the consignment payables account (transaction KON).
- Assign the special procurement type created in step 2 to all the materials that are to use the consignment process. This is done in the MRP2 view of the material master maintenance transaction
- Create Consignment info record using tcode ME11. Select info category as consignment. Create general data, Purchase Org data and conditions. Conditions allow you to create time dependent prices.
- Create PR/PO using the item category K. Due to the nature of these items, price is not applicable and so do not enter price. During consumption, the price will be picked from the consignment info record.
- The following transactions are used in consignemnt MB54 - Consignment stock MRKO - Settle consignment liabilities. Consignment stocks are not included in the company stock valuation. It is normal, as the ownership is still with the vendor.
Comments
STO or alternate for STO?
Info record based on Val type?
You want to use STO for moving consignment between wahrehouse/plants or you want to convert to own stock? Can you explain a bit more. I will write to you about the info record later.
Ravi
thanks for your very interesting post.
Do you know if it's possible to create a STO from plant A to B using consignment.
The stock is unrestricted-use stock in plant A and should be received in plant B in consignment with a movement like 101 K.
Do you have any idea to realize this ?
Thanks in advance
Karie
thanks for your very interesting post.
Do you know if it's possible to create a STO from plant A to B using consignment.
The stock is unrestricted-use stock in plant A and should be received in plant B in consignment with a movement like 101 K.
Do you have any idea to realize this ?
Thanks in advance
Karie
I am sorry, I was not able to reply to your comment. I do not know wether, you have got a solution or not. This is not possible. In fact it can be done in 2 steps. If you have found a method, I would love to learn that. Otherwise,
1. Move material (own stock) plant A to PLant B using 301.
2. Conver own stock to consignment in plant B using 411 K.
Regards
Ravi
We are currently setting up consigment stock. As part of this we are setting up stock determinantion , i.e. we would like the production order to pull from consignment stock first. Can you offer any help? please note we are using batch determination as well.
Nice post. I have following questions for consignment process with vendor.
1) Does MRKO take care of any goods returned to the vendor? I mean goods withdrwan from Consignment stock and then goods issue reversed and goods returned back to consignment.
2) If consignment withdrawl was posted at a specific price as per validity period of info record but actually price had changed and price difference needs to be paid to the vendor. Can MRKO handle that? How?
3) If settlement was wrongly done with MRKO for a few goods issues and a credit memo needs to be issued to the vendor for the same,is it possible with MRKO or with MIRO?
Some of the above are exceptional situations but in reality these do happen.
Thanks,
Amy
Thanks for your comment,
You can use stock determination either at Plant/Material level or at the application event level. I presume that you want to use the same stock determination rule for all the production order withdrawals. You need do the following steps
1. IMG> Inventory Management and physical Inventory > Stock determination > Define strategies for stock determination
a. Define a stock determination group for each plant
b. Define a stock determination rule
c. Assign stcok determination rule to the stock determination group (for each plant)
d. Define the stock determination sequence plant/group/rule combination
i. Special stock type (F unrestricted own stock, K Consignment)
1. You will have to create K as first record
ii. Sloc
iii. Priority indicator (1 is first priority)
iv. Valuation type
2. IMG> Inventory Management and physical Inventory > Stock determination > Assign Stock Determination Rule in the Applications > Production Order
a. Enter Plant
b. Order type
c. Flag (check during picking or batch determination)
d. Stock determination Rule
Nice article
Is there a way to mass convert all the consignment stock –site wise- to own stock?
In consignment inforecord we have Freight as statistical condition. In normal case this statistical condition value gets loaded to material MAP price. But MRKO doesn't do that. Can you please check & let us know.
Thanks.
Easy consignment
We are doing MIRO first & then MIGO during for any receipt.
My question is if scheduling agreement will ot contains price then how it will be reflected while capturing duty during MIRO process?
IT security
Thanks for your encouraging words. I am trying to be more regular, but somehow it is not materialising.