MM Notes 21 – CONSIGNMENT PROCESS
Consignment Process
Consignment process is one of the special procurement available in SAP MM. In Consignment
process vendor keeps his own materials in company’s location but material ownership remains
same with the vendor until the company uses (withdraw) it. Once company uses the
consignment stock then vendor will request for payment and company should make
payments.
1. Maintain Consignment PIR
Under this heading we will create consignment PIR by using below T. Code or Path
Use T. Code ME11
or
Path.
SAP easy access screen —> SAP menu —> Logistics —> Material Management —>
Purchasing —> Master data —> info record —> ME11 - Create —> Enter
DHANUSH
1
EMAIL: DHANUSHMM27@[Link]
MM Notes 21 – CONSIGNMENT PROCESS
DHANUSH
2
EMAIL: DHANUSHMM27@[Link]
MM Notes 21 – CONSIGNMENT PROCESS
--------------------------------------------------------SAVE----------------------------------------------------------
Note:
In consignment settlement process system will copy price and tax from info record.
2. Create Consignment Purchase Order
We can create PO WRT pr or without any reference. Under this heading we will create
consignment purchase order without PR
Process Steps
• Go to T. Code ME21N – Create Purchase Order
• Select consignment document type or standard document type NB
• Maintain vendor code
• Maintain purchasing org., purchasing group and company code.
----------------------------------------------------Enter----------------------------------------------------------
• Expand Item overview tab or go to Item overview
• Give item category K - Consignment
• Give material code, qty, delivery date
• Maintain Plant and storage location
----------------------------------------------------Enter----------------------------------------------------------
DHANUSH
3
EMAIL: DHANUSHMM27@[Link]
MM Notes 21 – CONSIGNMENT PROCESS
• Click on check icon and save the PO.
Note:
• In consignment PO Net price field will be in disable mode because of item category K.
• Condition tab and invoice tab will be in hide.
• In consignment payment amount and taxes will copy from PIR instead of PO.
3. Goods Receipt WRT Consignment Purchase Order
Under this heading we will perform GR WRT consignment PO.
Path
SAP Easy Access Screen —> SAP menu —> Logistics —> Materials Management —>
Inventory Management —> Goods Movement —> MIGO —> Enter
• Go to T. Code - MIGO
• Select Event A01 - Goods receipt
• Select reference document R01 - Purchase order
• Give movement type. - 101
• Give consignment purchase order number
———————-----------------------------------—Enter ———-------------------------------—————-
• Give document date and posting date
• Maintain quantity
DHANUSH
4
EMAIL: DHANUSHMM27@[Link]
MM Notes 21 – CONSIGNMENT PROCESS
• Activate item Ok
• Check and post
Note:
• We can check consignment stock in MMBE under vendor stock heading
• No Accounting entries in consignment GR.
DHANUSH
5
EMAIL: DHANUSHMM27@[Link]
MM Notes 21 – CONSIGNMENT PROCESS
4. Transfer consignment stock to own stock
Under this heading we will transfer consignment stock to own stock. Once we accept the
owner then company is eligible for settlement to consignment vendor.
T. code - MB1B in ECC and MIGO in S4 HANA for transfer Posting
Or
Path
SAP EASY ACCESS SCREEN → SAP MENU → Logistics → Materials Management → Inventory
Management → Goods Movement → MIGO - Goods Movement (MIGO) or MB1B - Transfer
Posting → Enter
DHANUSH
6
EMAIL: DHANUSHMM27@[Link]
MM Notes 21 – CONSIGNMENT PROCESS
Note:
• We can check stock in MMBE.
• Accounting entries after accepting the ownership
KON - Consignment Payable Cr.
BSX – Inventory Dr
DHANUSH
7
EMAIL: DHANUSHMM27@[Link]
MM Notes 21 – CONSIGNMENT PROCESS
5. Consignment Settlement
In consignment process we will use MRKO T. code for invoice settlement. The amount and tax
will be copied from PIR to settlement screen.
Path:
• Go to T. Code MRKO
• Give company code
• Maintain consignment vendor (Optional)
• Maintain material document (411-K)
• Activate Consignment check box
• Activate settle radio button —> Execute and check the accounting document number.
DHANUSH
8
EMAIL: DHANUSHMM27@[Link]