MB54 TO Check consignment stock.
Home / Community /Archives/Discussions Archive/SAP ERP - Logistics Materials Management
(SAP MM)
Actions
Archived discussions are read-only. Learn more about SAP Q&A
Consignment Process without PO
This question is answered
Hi,
My client does not want to create Consignment PO and Post 101K. Though Consignment Info
Record would be created.
Instead the material has to be inwarded using 501K and subsequently 411K would be posted and
finally MRKO to settle the vendor payment.
I ran thru couple of cycles to test and it worked fine.
Is anybody using this process and is there any difference in accounting in 101K and 501K ??
Your inputs would be of lot of help.
Regards
Shankar C.A.
December 11, 2012 at 11:31 AM
0 Likes
Correct Answer
Ken C replied
December 11, 2012 at 10:14 AM
Agree with Bijay, technically the purchasing process without PO looks fine but it will raise eyebrows
of SOX auditors, better check with client's internal audit team purchasing without PO is a heavy area
where a lot of frauds came in. Cheers.
http://www.bellwethercorp.com/Portals/56204/docs/Purch-Automation-SOX-Compliance(3).pdf
http://www.infosysblogs.com/supply-chain/2009/11/sarbanes_oxley_sox_and_the_pro.html
0View this answer in context
Helpful Answer
by
Murtuza Sadriwala
Not what you were looking for? View more on this topic or Ask a question
7 replies
Polly Gan replied
December 10, 2012 at 08:19 AM
Hi,
The 101 K will not create accounting entries, and neither does 501 K.
In consignment scenario, the accounting document will only be created during goods issue(201 K)
or stock transfer(411 K).
Thanks and regards,
Polly
1 likes
Bidhu Bhusan Sahoo replied
December 10, 2012 at 08:57 AM
Hi,
If you are not using consignment PO, then you need to use 501 k mvt type and it will not create
accounting entries since the stock still belongs to vendor.The 101 K also will not create accounting
entries.
Hope, it helps...
0 likes
Ghanshyam Joshi replied
December 10, 2012 at 19:50 PM
0 likes
Correct Answer
Ken C replied
December 11, 2012 at 10:14 AM
Agree with Bijay, technically the purchasing process without PO looks fine but it will raise eyebrows
of SOX auditors, better check with client's internal audit team purchasing without PO is a heavy area
where a lot of frauds came in. Cheers.
http://www.bellwethercorp.com/Portals/56204/docs/Purch-Automation-SOX-Compliance(3).pdf
http://www.infosysblogs.com/supply-chain/2009/11/sarbanes_oxley_sox_and_the_pro.html
0 likes
Bijay Kumar Barik replied
December 11, 2012 at 10:20 AM
Hi,
Its true in consignment process,the price picks from consignment info record only but you need a
Purchasing document number which serve as committed document where in payment time(F-53)to
vendor,finance team may enter Purchasing document number as reference before paying to
vendor.
Also for reporting purpose in future,if any - you need a Purchasing document number!
Regards,
Biju K
0 likes
Helpful Answer
Murtuza Sadriwala replied
December 11, 2012 at 10:53 AM
Hi,
Just to add above conversation without PO there will be no history maintained and it will be very
difficult to track the Procurement process becuase most of the report you require Purchase Order
Number.
Thanks and Regards
Murtuza Sadriwala
0 likes
Kiran Kumar AS replied
December 11, 2012 at 11:31 AM
. If a purchase order exists, you generally use movement type 101/K. If no
purchase order exists, you use movement type 501/K (Receipt w/o purchase
order into consignment stores).
Inventory Management is active, and the goods receipt must be posted to the
consignment stock
Manually
You post the goods receipt using the dialog transaction. You must enter the
movement type and vendor number. You enter item category K for the rack
jobber goods.
Using the goods receipt/goods movement IDoc in the POS interface
If you use this option, the goods receipt data is transferred from the store
electronically to the R/3 system. Item category K is assigned automatically.
I have a question on one practical scenario. When goods are in transit between warehouse
(Consignment stock) and production house and if some damage/loss happens to material,
who owns this loss? Is it vendor or customer? Do we use inco terms here as well based on
which ownership terms can be arrived at?
Indeed in business transaction the incoterms are defining the ownership of the goods.
But keep in mind that eventhough it’s well spread not all countries sign the chart.
In addition there are incoterms may be sometime interpreted differently in country and juridiction.
Finally the purpose of the consignment is indeed for the manufacturer not to have its own stock
increased with the consignment stock. So it is not shown in his stock account because he does not
possess them. Now of course it’s not because you do not own them that you might not responsible
for damage to the goods. All this should be defined in a proper sales contract ! Who is reliable for
what. Incoterms can help in that too.
