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 The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and put to use.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 The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed).
- 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
- 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
Here Debit means +Ve and Credit means -Ve.
Consignment Payable – KON – Credit
Stock – BSX – Debit
- Invoice Settlement – MRKO
Consignment Payable(KON) – Debit
Vendor Account – Credit
- Payment F110 or any other payment transaction
Bank Account – Credit
Vendor Account – Debit
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10 thoughts on “SAP MM Consignment Procurement Process”
There’s definately a great deal to learn about this topic. I like all of the points you’ve made.
That is good and great help.
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ganesh ji thanks, god bless you
You are welcome. Keep learning and sharing.
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Thank you so much sir for sharing your excellent knowledge and time 🙏🙏🙏
Thank you so much Ganesh for sharing your knowledge.
God bless you.
You are welcome. Keep learning and share with your circle