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Sap Mm Tutorials: Vendor Consignment

Vendor consignment process inwards SAP is used when a vendor provides your fellowship materials on loan. The materials are kept inward the warehouse of your company until yous withdraw the said materials for processing. Then, the liability is created for the vendor and a payment is done to the vendor on agreed intervals, e.g. weekly or monthly.
For the vendor consignment process in SAP to run, you kickoff call for to agree on pricing with the vendor. The prices are a kept inwards consignment info records in the SAP system. The prices can be automatically copied to purchase orders from info records.

Key Process Design for the Consignment procedure for Vendors inwards SAP – Consignment has been designed as a particular procurement type inwards SAP
The consignment stock is non valuated till the time it is consumed or withdrawn, since theoretically, it lies inward the books of the supplier (Vendor)
The consignment cloth issue is the same equally that of a textile in unrestricted stock in the purchaser’sec books
 Since the sourcing of a material tin happen from multiple parties, the consignment stock is maintained at the level of each supplier or vendor.
The toll of the consignment is maintained inward the purchasing info records (PIR) of the information category, Consignment
When the withdrawal happens from the consignment stock of a supplier, the goods receipt in the purchaser’second books happens at the toll maintained in the  purchasing info records of type consignment for that vendor too material combination.
The goods receipt against a consignment buy guild is e'er not valuated.
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Prerequisites:
1. Special Procurement type Consignment has to be given inward Material Master (Optional)
2.Create Consignment Info Record –Mandatory
iii.Maintain OBYC settings for Transaction Key KON –Consignment Accounts Payable
4.Maintain Output Condition Records for Output type KONS alongside Transaction Code MRM1
five.Create Purchase Order amongst Item Category G– Consignment- T Code ME21N
6.Goods Receipt against Consignment Purchase Order,Mvt Type 101 G – No accounting Entries – T Code MIGO-Goods Receipt
seven.Transfer the Consignment Stock to Own stock- Transfer Posting –411 G –T Code MIGO-Transfer Posting
8.Invoice Settlement – MRKO
9.Payment F110 or any other payment transaction
 Process Steps:
Accounting Entries:
Consignment Payable – KON – Credit
Stock – BSX – Debit
Accounting Entries:
Consignment Payable(KON) – Debit
Vendor Account – Credit
Accounting Entries:
Bank Account – Credit
Vendor Account – Debit   
SAP Vendor consignment process :


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