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 The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and put to use.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 The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed).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 K –T Code MIGO-Transfer Posting

Accounting Entries:

Here Debit means +Ve and Credit means -Ve.

Consignment Payable – KON – Credit

Stock – BSX – Debit

4. Invoice Settlement – MRKO

Accounting Entries:

Consignment Payable(KON) – Debit

Vendor Account – Credit

4. Payment F110 or any other payment transaction

Accounting Entries:

Bank Account – Credit

Vendor Account – Debit

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