consignment

[Former Member]

Dear all

1.Do we have raise PO for consignment material?

2.Normally, we do settlement thru MRKO for payment for consignment goods. Can we go thru MIRO way to pay to the vendor for consignment?

Thanks in advance

[Former Member · Accepted solution]

Hi,

Yes you will create a PO for the consignment material

You can not settle Consignment bills through MIRO, it has to be done through MRKO

Regards

Merwyn

[Former Member]

Hi

You definitely need to do a PO. The concept of consignment is that even though the products are in your premises it does not belong to you. So you have to create a PO with item category K. After that you have to do a GR then a transfer posting of movement type 411k using Tcode MB1B.Then you can settle it by using the Tcode MRKO. You will not be able to settle it using MIRO.

Hope this helps.

Regards.

Subhashini

[former_member192897]

> 1.Do we have raise PO for consignment material?

Yes, You should Create a Consignment PO thru ME21N with Item Category K Consignment.

The Prerequisite is Purchase Info Record of type Consignment should have Maintained with Proper Tax code.

Once Purchase Order is Created, you Can Goods Receipt same as normal Process but Stock will sit in Consignment Unnrestricted.

Again you have to Transfer the Material from Consignment Unrestricted to Own stock using MB1B / MIGO 411 Movement type.

Then you Can go for Settlement thru MRKO. for settlement Output Condition type KONS should be Maintained.

> 2.Normally, we do settlement thru MRKO for payment for consignment goods. Can we go thru MIRO way to pay to the vendor for consignment?

Yes, You can do Consignment Settlement thru MRKO but Not MIRO. Settlement is Not Possible thru MIRO

[pankaj_singh9]

Hi,

For Consignment Process, you need to maintain the Consignment Info Record in ME11. Here maintain the Prices and Tax Code mandatory

(Before this activate Consignment Info Record in OMEV )

Also in SPRO > Enterprise Structure > Assignment > Materials Management > Assign standard purchasing organization to plant

Then create Consignment PO in ME21N with Item Category as "K", here No Price will be maintained

Do Goods receipt w.r.t. PO in MIGO to Vendor consignment stock (At this time No FI Entry will get generated)

Do Transfer posting of vendor consigned stock to own stock using 411 K in MB1B or MIGO. At this time system will pick up the Price from

Consignment Info Record and post the Accounting Document. Here following FI Entry will appear;

(BSX) Stock Account - Dr
(KON) Consignment Liabilities - Cr

If Stock is directly consumed from Consignment Stock via 201 K or 261 K via transaction MB1A or MIGO then following FI Entry will appear;

(GBB-VBR) Consumption Account - Dr
(KON) Consignment Liabilities - Cr

Now do Consignment Settlement in MRKO. Here you can not change the Invoice Value. Here following FI Entry will appear;

Vendor Account - Cr
Consignment Liabilities - Dr

Prerequisite for MRKO: -

- Maintain condition record for output type KONS in MRM1

Then take printout of the Settlement Document in MR91.