goods receipt

SAP MM Consignment Procurement Process

/ ganeshsapmmwm / 10 Comments

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 The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and put to use.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 The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed).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

  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

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Ganesh

ganesh.sap2015@gmail.com

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Give few points about Negative Stocks in SAP Inventory Management

/ ganeshsapmmwm / 1 Comment

Answer:  Negative Stocks allowed can be activated at Valuation Area and  Storage Location level. This is useful when business wants to use the Physical stock although the Goods Receipt in the system is not yet happened due to any other reasons. Business can issue the stock in the system to Production or Cost Center etc.

System will update negative stock in the system and we can see in stock overview. It will be updated once the Goods Receipt is done.

Negative stocks in valuation area allowed

Specifies that negative stock balances are allowed in the valuation area.

Dependencies

Negative stock balances can only result if they are allowed at the following levels:

  • Valuation area level
  • Storage location level
  • Material level (plant data in the material master record)

Negative stock levels are already allowed for special stocks if negative stocks have been activated in the valuation area and for the special stock in question in the plant. You do not have to activate them in each material master record.

You can have negative balances in stocks of the types Unrestricted and Blocked

Negative balances are possible in the following special stocks:

  • Vendor consignment (K)
  • Stock of material provided to vendor (O)
  • Consignment stock at customer (W)
  • Sales order stock (E)
  • Project stock (Q)
  • Returnable packaging stock at customer (V)
  • Returnable transport packaging (M)

Configuration : Negative Stocks allowed activation for Valuation Area and Storage Location

negative-stocks-1

negative-stocks-2

negative-stocks-3

Negative Stocks allowed at Material : 

negative-stocks-4

Regards,

Ganesh

SAP Logistics Invoice Verification complete process video

/ ganeshsapmmwm / 2 Comments

Hello Friends,

In this video, I have explained the process steps for Invoice Verification, Credit Memo, Subsequent Debit and also Subsequent Credit. I hope this video will be helpful for your learning

Logistics Invoice Verification is a part of Materials Management (MM). It is situated at the end of the logistics supply chain that includes Purchasing, Inventory Management, and Invoice Verification. It is in Logistics Invoice Verification that incoming invoices are verified in terms of their content, prices and arithmetic. When the invoice is posted, the invoice data is saved in the system. The system updates the data saved in the invoice documents in Materials Management and Financial Accounting.

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Regards,

Ganesh

ganesh.sap2015@gmail.com

Pre closing of Purchase Order

/ ganeshsapmmwm / Leave a comment

FlipkartLogo

Hello Friends,

Generally the requirement of pre closing the purchase order comes from the business frequently due to several reasons like the vendor has stopped supplying suddenly or that material is not required any more in the future etc. I have provided the document here to close Purchase order. Once you close the Purchase order, it won’t be allowed to do Goods Receipt.

Closing Purchase Order -No future GR: 

Once we activate the flag for Delivery Completed field, system won’t allow to do Goods Receipt for this Purchase Order. Delivery Completed indicator is available in the Delivery tab of the Purchase Order item.

Regards,

Ganesh

ganesh.sap2015@gmail.com

SAP MM Master Data Overview Video

/ ganeshsapmmwm / 1 Comment

Hello Friends,

I have provided the recording video about the explanation of Material Master. In this document, functionalities are explained with SAP screens. I hope it will be useful for you. Find the video in below link. Share with friends to make it more useful

 

Regards,

Ganesh

Partial Reverse of Goods Movement in SAP Material Management

/ ganeshsapmmwm / 5 Comments

Hi Friends,

I got an idea to prepare this document as per the flow of tickets in one of the support projects I worked. When user wants to reverse the entire quantity of the previous document which he/she has posted earlier can be done easily with the help of Transaction code MBST or Cancellation option in MIGO. But when he/she wants to perform partial reverse, it would be a task which needs some manual effort. Although it is not that much critical activity, I felt this document will be helpful to handle this successfully

Partial reversal of Goods Movement

Regards,

Ganesh