CONSIGNMENT PROCESS IN SAP
Vendor consignment process in SAP is used when a vendor provides your company materials on
loan. The materials are kept in the warehouse of your company until you withdraw the said
materials for processing. Then, the liability is created for the vendor and a payment is done to
the vendor on agreed intervals, e.g. weekly or monthly.
For the vendor consignment process in SAP to work, you first need to agree on pricing with the
vendor. The prices are a kept in consignment info records in the SAP system. The prices can be
automatically copied to purchase orders from info records.
After maintaining consignment info records, a consignment purchase order is created in SAP
and handed over to the vendor. The vendor provides your company with materials according to
the purchase order (PO). The warehouse of your company performs goods receipt of the
materials against the purchase order and the materials are stored as consignment stock in the
SAP system.
Later, when materials are required for processing, you withdraw the material from the
warehouse and a liability is created for the vendor which is settled through a special payment
process (T-Code: MRKO)
T-CODE
MM01- Create a material
ME11- INFO-Record
ME01- Source list
MIGO-Goods receipt- (101-K, M-Type)
MIGO- Transfer posting-(411-K, M-Type)
MMBE-Stock overview
MRKO-Settlement to the vendor.
Material is created- 60080599 – T-CODE-MM01
Create the INFO-Record- 6000000106- T-Code-ME11
Created a sources list T-Code-ME01
Create a Purchase Requisition: 0010048918-T-Code-ME51N
Create a purchase order: 4500024886 T-Code-ME21N
Goods Receipt: MIGO
MMBE-Stock overview:
MIGO-Transfer stock:
MMBE-Now you can have a look from 100 no’s it’s reduced to 50 no’s in stock overview
MRKO-Settlement to the vendor
Key points to remember:
➢ Consignment PR- Item category as K
➢ Consignment PR→ PO Item category as K
➢ No price maintain in the PO level
➢ Consignment Good receipt -101K ( M-Type)
➢ No accounting document should maintain
➢ Moving the stock from consignment to our stock-411K (M-Type)
➢ Settlement through MRKO.
