What is SAP Procurement – Vendor Consignment?

Vendor Consignment Stock

This is a special kind of stock which can be viewed under SAP inventory transaction MMBE but it belongs to the vendor. As per the need, the company withdraws stock from Vendor Consignment Stock, which results in change of ownership of stock. At this stage, the stock is valuated and a liability towards the vendor is raised.

When a consignment stock is received from the vendor, it can be designated as one of the following stock type:

1), Unrestricted-use stock

2), Quality inspection stock

3), Blocked stock

Stock can be withdrawn from the Vendor Consignment Stock only if it is under Unrestricted-use stock.

SAP Transaction Flow

Create a Purchase Info Record for Material Vendor combination (ME11) with info category as consignment.

Create a Purchase Order with Item Category as “K” for consignment item. This ensures that a Goods Receipt to this purchase order results in vendor consignment stock and an invoice can not be posted based on Goods Receipt alone. The net price of the PO is usually zero.

Goods Receipt based on the purchase order. The stock can be either,

1. Unrestricted-use stock

2. Quality inspection stock

3. Blocked stock

Stock Withdrawal

T Code – MIGO

1. Transfer Posting – Others – Movement Type = 411

2. Enter Material, Quantity, Vendor, Plant etc.

3. Check and Post the document

Also See: Special Stocks and Procurement Types in SAP MM an Overview

Stock Settlement

Consignment settlement T Code – MRKO

Master Data Settings

Special procurement type = 10 for consignment stock. This material master setting will result in a warning message when a purchase order is created without item category as “K”

Purchase Info Record for a consignment purchase is mandatory. The price for vendor consignment stock is picked up from purchase info record.


Consignment Stock Reports 

MMBE – Stock Overview : Company Code / Plant / Storage Location / Batch

MB54 – Display Consignment Stocks

Note:

An alternate way to SAP transaction flow could be when Goods Receipt is made without reference to a purchase order using movement type 501 K.

Material can also be issued to a cost center directly instead of a 2 step process of withdrawal and then issue to a cost center. The Movement type would be 201 K. Refer Goods Issue from Inventory to CostCenter (Manufacturing Consumption)

An accounting document is generated only during stock withdrawal. The price is picked up from Consignment Info Record. During Goods Receipt no accounting document is generated.

Also See: The difference between Logistics, Inventory Management & Supply chain Management

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