SAP MM Consignment Procurement Process

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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 The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and put to use.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 The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed).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:

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

Process Steps:

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

Accounting Entries:

Consignment Payable – KON – Credit

Stock – BSX – Debit