Consignment Process
The consignment process refers to a specific procurement
scenario where materials are provided by a vendor but
remain the property of the vendor until they are consumed
or used. This process is useful for managing inventory where
the ownership remains with the supplier until the goods are
used or sold.
Consignment stock can be allocated to Consignment Warehouse
Unrestricted
Quality
Blocked stock
But if we want to take stock into our premises then stock should be
withdraw from the Unrestricted only.
Key Process Design for the Consignment process for Vendors in SAP
- Consignment has been designed as a special procurement type in
SAP
- The consignment stock is not valuated till the time it is consumed
or withdrawn,
-The price of the consignment is maintained in the purchasing info
records (PIR) of the info category, Consignment
- The goods receipt (101K) against a consignment purchase order is
always non valuated and (411K) is Valuated.
Consignment Process steps
1. Material master - 1430
2. Vendor master - 5555
3. Consignment Info record (Mandatory)
4. Create Purchase order with item category K-consignment
(No Price and No condition records)
5. Goods receipt against consignment stock PO, movement type
101-k (No accounting entries)
6. Transfer the stock to Own Stock Movement type 411-k (Transfer
posting (Accounting entries)
7. Invoice settlement (MRKO)
