Consignment and pipeline

Question

what are the steps to create a consignment and pipeline purc order. what are the pre-requisite in MM?

Answer 1

Hi,
The process are:
#Consignment Process:
Vendor provides materials & stores them on your company premises. The vendor remains the legal owner of the material until you withdraw material from consignment stores. The steps:
a. ME11,
b. Create Contract, ME31 ( item category K)
c. ME01 (enter Contract Number)
d. Create PR( item category K)
e. Create PO ( item category K)
f.GR
g.GI
h. Consignment Settlement
The Accounting Generated After GR/GI/Settlement are:
1.Goods Receipt
     No Accounting Movement
2.Goods Issue
     Consumption A/C: DR
     Consignment (Liability Account ) Payable: CR
3.Consignment Settlement
     Consignment (Liability Account ) Payable: DR
     Vendor Account A/C: CR
#Pipeline material
Pipeline material is a material that flows directly into the production process from a pipeline (for example, oil), from a pipe (for example, tap water), or from another similar source (for example, electricity). A material from the pipeline is always available; i.e. it can be withdrawn from the pipeline at any time and in any quantity.The steps are:
a.ME11,
b.ME01,
c.ME51,
d.ME21,
e.MB1A
The Accounting Generated After GI/Settlement are:
1.Goods Issue
     Consumption A/C: DR
     A/c Payable For Pipeline : CR
2.Pipeline Settlement
     A/c Payable For Pipeline : DR
     Vendor Account A/C: CR
Regards,
Biju K