Consignment MM-SD

[Former Member]

Hi all,

I have 2 companies, the company A send material in consignment to company B and this sales it.

The company B settles the goods issues (trx MRKO) and this process creates a credit memo to company A.

The company A finishes with the billing that creates an invoice to company B.

I want to know what have to consider about the billing in both processes (MM and SD), because in this case I would have 2 legal document (credit memo of company B and invoice of company A) of the same materials.

Thanks.

[Former Member · Accepted solution]

Hi,

As the transfer from A to B is a true vendor customer relationship, you may need to use a regular Consignment Sales process:

1) Consignment Fill-up Order from A to B (B is customer in SAP)

No billing but DN and PGI takes place

2) Consignment Issue Order in Company B

DN, PGI and Billing

3) Company B enters Invoice (billing document) received from A in its MIRO

4) Company B sends outgoing payments via AP to B

5) Company A enters AR for the payment received from A

This is pretty much standard. I don't see any need for credit memo, even though it is possible with no limitations.

Please post if you have any more questions. Reward if it helps!

Regards

[Former Member · Accepted solution]

Thanks Gopala.

The SD cycle is ok.

But the MM cycle in Company B would be:

1) PO (consignment)

2) GR (stock consignment)

3) GI (consumption)

4) Settlement (trx MRKO) --> it creates an invoice doc from B to A.

Would it be the same that the invoice (billing document of A)?

If it is right, how I updates the legal number?

Thanks again.

[Former Member · Accepted solution]

Anibal,

In MRKO you are settling for the goods you received that means you are posting an auto invoice in company B (assuming that your info records and contracts are maintained correctly with the correct prices) as if you have got a invoice from the company A

I think you are incorrectly understanding that this is an invoice that is going from A to B agian. The document generated in MRKO is equivalent to one we get in MIRO which goes to AP(payables) of company B to settle with AR(receivables) of A.

From SAP Help,

The use of consignment and pipeline settlement reduces the cost of stockholding in the company by:

• Reducing the flow of paper and administration work

• Minimizing transport costs by using collective transports

And, for a modest capital tie-up, increased security of supply is guaranteed with minimal inventory levels and short lead times

Features

You do not expect an invoice from the vendor for goods withdrawals from consignment stocks or a pipeline. Instead you settle posted withdrawals and return deliveries yourself and send the vendor a statement of the settlement. You can perform this settlement periodically in the background. The following documents can be involved:

• Invoices

• Credit memos

Consignment settlement is connected to message determination. As a result, you can define a form in Customizing. A message record is created during each settlement. This message record completes the form. Depending on the system settings, you can send this form to the vendor immediately on posting or at a later time.

Note

If you want to change document header data for consignment settlements, use the Business Add-In MRM_MRKO_HDAT_MODIFY. For more information, see the documentation for the Business Add-In.

For further documentation or help on this look at this

http://help.sap.com/saphelp_47x200/helpdata/en/33/222138c2ebcc46e10000009b38f842/frameset.htm

AH