SAP MM Consignment Procurement Process


Hi Friends,

I provided the Consignment procurement process in this document

Vendor Consignment is a process wherein the supplier provides materials and stocks them in the purchaser’s premises. The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and put to use. The inventory gets transferred to the books of the purchaser only when the same is removed from the consignment stock. The supplier (vendor) would not invoice the purchaser initially when they come into the premises of the purchaser. The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed).

Prerequisites:

  1.  Special Procurement type Consignment has to be given in Material Master (Optional)
  2. Create Consignment Info Record –Mandatory
  3. Maintain OBYC settings for Transaction Key KON –Consignment Accounts Payable
  4. Maintain Output Condition Records for Output type KONS with Transaction Code MRM1

 Process Steps:

  1. Create Purchase Order with Item Category K– Consignment- T Code ME21N
  2. Goods Receipt against Consignment Purchase Order,Mvt Type 101 K – No accounting Entries – T Code MIGO-Goods Receipt
  3. Transfer the Consignment Stock to Own stock- Transfer Posting –411 KT Code MIGO-Transfer Posting

Accounting Entries:

Here Debit means +Ve and Credit means -Ve.

Consignment Payable – KON – Credit

Stock – BSX – Debit

  1. Invoice Settlement – MRKO

Accounting Entries:

Consignment Payable(KON) – Debit

Vendor Account – Credit

  1. Payment F110 or any other payment transaction

Accounting Entries:

Bank Account – Credit

Vendor Account – Debit

You can click below link and register if you need my whole SAP MM Videos

https://docs.google.com/forms/d/1hqDLc-o4kVbWoBog_1kD9tgzHy8NDYzhSRGHZAyfxdc/edit

 

Regards,

Ganesh

ganesh.sap2015@gmail.com

Watch my videos and subscribe to my YouTube channel and open online shopping links through my blog when you shop in online

YouTube Channel: 

https://www.youtube.com/c/GaneshSAPMMWM

Use below links if you want to enroll SAP Udemy Courses of Ganesh Padala

SAP WM Course on RF Mobile Data Entry

https://www.udemy.com/course/sap-wm-course-on-rfmobile-data-entry/?couponCode=E86A6CE80776F47F1053

SAP MM Master Data Course

https://www.udemy.com/course/sap-mm-master-data-course/?couponCode=01A5872B6C528C2ADF75

SAP MM Pricing Procedure

https://www.udemy.com/course/sap-mm-pricing-procedure/?couponCode=56B48036851A61A01B48

SAP MM Import and RTP Procurement Process

https://www.udemy.com/course/sap-mm-import-and-rtp-procurement-process/?couponCode=B02EFE4C298E33955984

SAP Intra Company STO process

https://www.udemy.com/course/sap-intra-company-sto-process/?couponCode=E077860B6678D767A508

SAP MM Consignment and Pipeline Procurement

https://www.udemy.com/course/sap-mm-consignment-and-pipeline-procurement/?couponCode=A12769C88203566BEFFF

SAP MM PR and PO Release Procedure

https://www.udemy.com/course/sap-mm-pr-and-po-release-procedure/?couponCode=95CCB776C44F4660AA82

SAP MM Subcontracting and SAP Batch Management Process

https://www.udemy.com/course/sapmm-subcontracting/?couponCode=86B4C82971B10EEE7C51

SAP MM Interview Discussion on Purchase and Release Procedure


Hi Friends,

I have provided the answers to few queries from Purchasing and Release Procedure. I hope it will be helpful for your learning.

Comment and Share if you like the video.

Regards,

Ganesh

ganesh.sap2015@gmail.com