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Vendor Consignment in SAP MM
In this topic you will learn about What is vendor Consignment in SAP MM. and you will
understand how to create Consignment material, Purchase Info Record with K, Goods receipt
with purchase order through movement type 101K.
Case 1: Transfer posting with movement type 411K and invoice settlement in MRKO.
Case 2: Consume the Vendor consignment stock directly from good issue MIGO with
movement type 201K in production and invoice settlement in MRKO.
What is Vendor Consignment
✓ Consignment is functionality in MM purchasing when you purchase the material from vendor on
consignment basis.
✓ We will provide the premises to vendor in our stores however, we are not responsible for the
stock.
✓ The stock is legally owned by the vendor only.
✓ When the delivery comes, we will make a GR even then, stock still legally by the vendor. If you
look at our stock status, it shows as ‘Vendor Consignment’ stock.
✓ As and when we want the material, whatever the quantity it is we will simply transfer the vendor
consignment stock into our company own stock by transfer posting.
✓ Vendor need not send the invoice or bill for with drawl quantity. Company will settle his
consignment liabilities.
Consignment Consignment Purchase
Purchase Info Order with
Vendor Record
Material Item
Consignment category K
(K)
MRKO GR with Mvt
Tranfer Posting with
Invoice settlement Mvt 411K 101K
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
Important points to remember:
✓ Purchase info record-Tax code (Mandatory) or else we face issue in MRKO.
✓ In Consignment process we won’t do invoice verification MIRO transaction; we
will directly settle the invoice in MRKO transaction.
✓ Basic behind this in MIRO transaction we will have field to include the tax code.
But in MRKO transaction we can’t add or include the tax code. Hence, we are
maintaining the Tax code in PIR level itself.
✓ GR is non valuated hence there accounting documents are not generated.
Prerequisites for Vendor Consignment:
[Link] material master
[Link] Vendor master record-ERS enabled
3. Create Info Record (ME11), with info category as ‘consignment.’
Note: Maintain Tax Code in purchase data view
4. Create Purchase Order (ME21N) with item category as ‘K’
5. Take the receipt of the material i.e. GR (MIGO) with movement 101K
• Here as a proof of action one material document is created
• However no Accounting document creates
6. Now the stock status (MMBE) shows that the material now as ‘Vendor Consignment’
Case 1:-
7. Transfer the stock to company own stock (MB1B – Mvt 411K)
a. Now as a proof of action one material document is created.
b. Here Accounting document creates with the following A/c
8. Consignment liabilities can be settled in MRKO
LinkedIn | Akash S K
Email :- akash.250896@[Link]
Mob. No: - 7975776231
Case 2:-
10. Consume the Vendor consignment stock directly to production through goods issue with
Mvt 201K.
a. Now as a proof of action one material document is created.
b. Here Accounting document creates with the following A/c
11. Consignment liabilities can be settled in MRKO
CONSIGNMENT PROCUREMENT
Movement type Accounting Document Transaction Key Description
101 -K MVT NO N/A N/A
KON (-) Cr Consignment payables
411-K MVT YES BSX (+) Dr Inventory posting
KON (-) Cr Consignment payables
201-K MVT YES GBB (+) - VBR Dr Consumption Account
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
Step: - 1
➔ Create material by Using T-Code: - MM01
➔ Material 9323 created.
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
Step 2:
➔ Create Purchase Info. Record by Using T-Code: - ME11
➔ While creating PIR tick Info Category as Consignment
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ Put Tax Code while creating PIR its mandatory for Invoicing.
➔ Purchasing info record 2000000474 AL00 K ALMG created
LinkedIn | Akash S K
Email :- akash.250896@[Link]
Mob. No: - 7975776231
Step: - 3
➔ Create a standard purchase order by using T-Code: - ME21N
➔ While creating PO put item category as (K) for Consignment.
➔ Purchase order created under the number 4500026514
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
Step: - 4
➔ Take the GRN by using T-Code: - MIGO
➔ Material document 9899000147 posted
➔ No any accounting document generated after GRN. Accounting
Document generated only after the stock is consume.
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ Check the stock of Material by using T-Code: - MMBE
➔ Stock is showing as vendor location only because of consignment.
LinkedIn | Akash S K
Email :- akash.250896@[Link]
Mob. No: - 7975776231
Step: - 5
Case: -1 through Transfer Posting
➔ By using T-Code: - MIGO
➔ Do transfer posting pick material from vendor consignment stock to
Plant store location (411K: - TP consignment to own) of 500 quantity
➔ Material document 1000024824 posted
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ Again Check the stock of Material by using T-Code: - MMBE
➔ As per Transfer Posting Stock get Transferred from vendor location to plant location as
shown above of 500 quantity.
Step: - 6
➔ Do the Invoice Verification by Using T-Code: - MRKO
➔ Do the invoice verification for vendor consignment process.
➔ By entering T-Code below screen opens.
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Email :- akash.250896@[Link]
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Enter the Company Code & Plant & Select Processing as Display. Execute.
➔ It will show you the list of pending / not settled invoice.
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ In Processing tick on Settle as below & Execute to do Invoice verification
➔ After executing Automatic IV done & Accounting Document 5100001085 generated.
LinkedIn | Akash S K
Email :- akash.250896@[Link]
Mob. No: - 7975776231
Case: -2
Consume the Vendor consignment stock directly to production through 201K
from goods issue .
Step 1: Stock overview by MMBE
Step 2: -
➔ Issue the goods directly from VCS (Vendor Stock) to Production by using T-Code: - MIGO
(201 Movement: - GI Cost center from Consignment) of 10 quantity from consignment to
production.
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Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ Put Partner: - Vendor Code 5011276 Cost Centre & GL Code.
➔ Material document 41414111297 posted
➔ Check the accounting entries in FI Documents
LinkedIn | Akash S K
Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ Again Check the stock of Material by using T-Code: - MMBE
➔ Now the stock gets consumes as we directly issue goods from vendor stock to
production.
Step: - 3
➔ Do the Invoice Verification by Using T-Code: - MRKO
➔ Do the invoice verification for vendor consignment process.
➔ By entering T-Code below screen opens.
LinkedIn | Akash S K
Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ Enter the Company Code & Plant & Select Processing as Display. Execute.
➔ It will show you the list of pending / not settled invoice.
LinkedIn | Akash S K
Email :- akash.250896@[Link]
Mob. No: - 7975776231
➔ In Processing tick on Settle as below & Execute to do Invoice verification
➔ After executing Automatic IV done & Accounting Document get generated.
