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Vendor Consignment Procurement Process

The document outlines the vendor consignment procurement process, where the vendor retains ownership of materials until they are withdrawn by the company. It details the necessary master data, settings, and transaction codes (T-codes) for creating consignment info records, purchase orders, and settling consignment liabilities. The finance team is responsible for processing payments to the vendor through the MRKO transaction code.

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shubham patil
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32 views6 pages

Vendor Consignment Procurement Process

The document outlines the vendor consignment procurement process, where the vendor retains ownership of materials until they are withdrawn by the company. It details the necessary master data, settings, and transaction codes (T-codes) for creating consignment info records, purchase orders, and settling consignment liabilities. The finance team is responsible for processing payments to the vendor through the MRKO transaction code.

Uploaded by

shubham patil
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

VENDOR CONSIGNMENT

Procurement process with consignment


Master data and settings required for vendor consignment
Post goods movement for consignment stock
Settle consignment withdrawal
Display consignment stock

Vendor Consignment:
In consignment process-the vendor provides the material and stores them on your premises.

The vendor remains the legal owner of the material until you withdraw materials from consignment
stores or post it own valuated stock

You have an arrangement with a vendor to supply a particular quantity of consignment material to your
company.

You take ownership of the material when you issue to a cost center or transfer it into your own stock.

You settle your consignment liabilities with the vendor at set periods of time, for example, monthly.
 Create consignment info recorded. T-code-ME11
 Need to create a info because purchase order will take price from info record.
 Create a consignment purchase order T-Code-ME21N
 Item category should “K “Consignment
 Goods receipt for the purchase order-MIGO
 Create a reservation –MB21
 Goods issue from the reservation –MIGO
 To give a settlement-MRKO
From vendor consignment create a reservation with movement type-201.
 After Creating a goods issue agaisnt vendor consignment reservation.
 System will create a accounting document for the finance peope to make the payment to
vendor.
 Display material go to -MIGO
To settle the amount pericodically-MRK0

To settle the amount here we need to select settle

Then this amount picking from info record

Info we maintain 8*50=400

Because purchase order there is no price

So that why info record is mandatory for


consignment.

Or settle will be a problem.

Tax code we need to maintain in info record.


Document is created keeping
the finance team will make a
payment.

Consignment payment happens


through MRKO.

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