Linking Consignment Settlement (MRKO) with Value Contract

Hi Guys,
We are trying to set up Consignment stock functionality in our company. We have successfully configured and tested it but there is only one problem, we want to link this consignment functionality with and Outline agreement (Value Contract to be exact), so that every time we do a settlement using MRKO, the invoice value is deducted from the total value of the contract. My first question is
1 - Can we link consignment settlement (MRKO) and Value Contract in such a way that each time we run consignment settlement using MRKO , the open/ remaining value of the Value Contract is decreased by the invoice amount. If YES, then how can we do it (Please mention the steps if possible)
2- If NO, then what is the way to achieve above task, is their workaround for it ??

Normally we do not get into consignment arrangements with supplier with value limites or qty limites. It defeats the purpose of consignment, where idea is to reduce inventory carrying cost and yet have full availability of stock.
Also, you will provide a dedicated space in your premises to your Supplier and hence to limit him with total value of your consumption is difficult to achieve. Even if you make some enhancement in system to achieve it, on shop floor how can you control it, if you have inventory open for use? If you have negotiated with consignment vendor based on value, I am sure Vendor will not replenish any inventory once he thinks that overall value limit is breached and hence suddenly one day, without any indicators to you, you will run out of those components which you do not have in your inventory, nor in your consignment inventory.
You can implement any exit, which may stop you post the transaction in system, but I believe if you are entering into such contracts with your supplier, you may need to have some sort of notification once you are close approaching the overall limit, to either re-negotiate the contract or to have those components ordered for your inventory directly to ensure availability of stock.
Regards,
Dakshesh

Similar Messages

  • Consignment settlement (MRKO) with reference to PI vendor partner

    Hi,
    To day our consignment settlement documents are being created with reference to the VN partner. How can we drive the consignment settlement to be created with reference to the PI vendor partner?
    Thanks and regards, Jose Oyon.

    Jose,
    There is no SAP standard way to do this.    You would need to customize the solution to make this happen.   There is an OSS note explaining why this is not  standard functionality.   Sorry I don't have the OSS number but it should be an easy search.
    Regards,
    Sandra

  • Consignment Settlement - MRKO issue

    Hi All..
    When i do a consignment settlement (MRKO) , SAP come up with an information msg
    "Consignmnt settlement: No message was found for partner XXXXXXXXXXX/compny c"
    and hence i am not able to settle the document.
    Does anyone of you have an idea about it ?
    Thanks
    Balaji

    Hi,
    Double check whether you create the vendor master data at the company code level?
    Good luck
    Tao

  • Consignment Settlement(MRKO) Problem

    Hi,
    For consignment stocks, after GR from PO, we'll either do a mvt:211K to cost ctr or mvt:411K to inventory. Now this will create a settlement entry in MRKO based on the existing PIR(purchase info record) unit price.
    After 6 months, vendor sends the invoice for the above PO but with a different unit price billed. In this case how can we settle the consigment items(based on the orginial 211K and 411K PIR price) in MRKO as the price does not tie back to the vendor invoice price. Any possibilties to do the consignment settlement based on the vendor invoice latest unit price?
    Thanks,
    Teo

    Teo,
    To be clear the vendor should not be sending an invoice for goods on consignment.   However I understand that this is done as we are facing the same delima.  
    The only way to settle using the price on the invoice the vendor sent, is to reverse your goods issues, change the price and do the goods issue again.   Not a good process and in most cases not a supportable work process.
    Our current process is to settle the consignment, reverse the invoice and post an FI invoice to match the invoice the supplier sent.   We are considering changing that process to settle the consignment then post a subsequent debit/credit.  
    Good luck.   I hope someone else has a better answer for you.  I have posted a similar question to this forum and did not receive any helpful responses. 
    Regards,
    Sandra

  • Consignment Settlement - MRKO

    Hello Friends,
    I am doing consignment settlement in MRKO. But here i am getting the following error.
    Tax code V0 country JO does not exist in procedure TAXJOR.
    I have also done MRM1, that is, condition record for consignment. Still I am getting this error.
    Can anybody suggest me what I have to do further to solve this error?? Do I have to create a new tax code V0 for JO - Jordan??
    If yes what is the transaction code for this??
    Kindly advise me on the above.
    Thanks and Regards.
    Umakanth.

    Friend
    Maintain taxcodes using trnasaction code FTXP
    ENJOY SAP
    Regards

  • Re: Consignment material qty with value

    Hi All,
    How can i see the consignment list with customer qty with value.
    When I can find list pumps quantity and value on Consigments ?
    I use transaction MB 58 but I have only what they have on stock ( but
    without value )
    Thanks & Regards
    Siva

    >
    sivakumar Annamalai Shanmugam wrote:
    > Hi All,
    >
    > How can i see the consignment list with customer qty with value.
    >
    > When I can find list pumps quantity and value on Consigments ?
    >
    > I use transaction MB 58 but I have only what they have on stock ( but
    > without value )
    >
    > Thanks & Regards
    > Siva
    Have you checked MB5B/MB51 with special stock indicator?
    Regards,
    Indranil

  • Consignment settlement MRKO and EDI

    I use a vendor consignment flow, with MRKO transaction and generation of application message KONS.
    I want to send this message by EDI (perhaps is it KON6 in this case ?)
    Does somebody knows which ALE message must be used to build the interchange agreement ?
    Thanks for help.
    Michel
    I have found the solution : GSVERF
    Message was edited by:
            Michel MAHAUX

    I have found by myself

  • Value contracts Maintenance Orders (service Orders) for particularly period

    Hi Experts,
    My client wants Value contracts Maintenance Orders (service Orders) for particularly periods. How can I maintain this scenario in sap MM.
    Thanks in advance,
    Chandhu

    Thanks for your replay,
    I have tried already standard value contract.
    I have mentioned 1000 service number in value contract. But I am not getting service number at the time of Purchase Order creation with Value contract reference number.
    Thanks
    Chandhu

  • Target value in value contracts

    Hello people. I have an issue with value contracts in ECC 6.0 (trx VA41). Usually when you put the target value in your resume screen, that value goes directly to the WK00 condition (because I´m working with the standart price determination Wk0001). But that doesn´t happen in my instalation. The system gives me a error of price calculation: missing Wk00 condition (message V1801).
    I checked other 2 systems, but they are working fine. I checked the configuration (conditions, price determination, items, header, copy control) between that systems and mine, and it´s the same.
    Additionally, I found this sap note (549875), which says:
          +2. Question: What is a value contract characterized by in SAP?
                  Answer: The completion rule of a value contract item is E (TVAP-ERLRE) that is, the item is completed if the full target value is referenced. The target value of a value contract item is saved as a condition, for example, WK00, on item level. +
    In other hand, I checked OSS notes and this forum, but I couldn´t find the answer. Anyone have any idea to solve this issue? Thanks a lot.
    Edited by: Rodriguez Gutierrez German Sigfrido on Nov 17, 2010 7:56 PM

    Hi,
    The error suggests that the WK00 is present in your pricing procedure, but is missing.
    Check If you have any other pricing condition type like ZK00 (Copy of WK00), and both WK00 and ZK00 are both present in pricing procedure. WK00 is a manual (no access sequence) and required entry in standard value contract pricing procedure.
    If you are not using any other customization in pricing and using standard WK00 condition type, then the error should not occur.
    regards,
    Vaibhav

  • Consignment and Pipeline Settlement - MRKO

    Hi All,
    Is there any way to remove Zero and Negative values from 'Consignment and Pipeline Settlement' (MRKO). I am having material documents with Zero and Negative values and when I tried to Settle them, so that would not appear next time in the list, getting error "Zero value in amount is not allowed". Is there any way I can delete them so that these record will not appear in MRKO.
    Thanks
    Anil

    Hi Anil,
    How you are getting ZERO and Negative Vale for consignment?
    Consignment settlement will happens after withdrawal of goods or after Sales based on your Consignment Purchase Info record.
    Bye,
    Muralidhara

  • MRKO - Consignment settlement cleaning up

    Hi all,
    Currently we have the consignment settlement under MRKO back to year 2003.
    The root cause for this is the list of material document was not posted as the purchasing info record was not maintained  back on year 2003 and upon good issue, the movement is not valuated with no material document as it will not have the purchase price from the purchasing info record. Thus it will show only 0(zero) value on MRKO list whereby it is not able to settle.
    So are there any way that we can settle this consignment as it is back to year 2003, i'm not looking into the option of reversed the good movement from year 2003 to currently fiscal year 2010.
    Hope you can provide some better alternative.
    Thank you.
    Kah Fei

    hi  chakrapani,
    If i would like to reverse the good movement and perform the MRKO based on the current period. From the financial side, did you see any huge impact. For what i can think will be all the consignment only will be incurs now with the financial document posting as the previous posting back on year 2003 has not been capture as it doesnt have any price maintain.
    Hope to hear from you.
    Kah Fei

  • MRKO Consignment settlement against a PI partner

    Hi
    I have a problem with the vendor the MRKO settles against. The scenario is that I want to settle the against a PI maintained in the vendor master (in the partner function) which is different to the VN that the MRKO run settles against because this is the vendor the info record is created for and the PO was created against.
    Please help
    Shashi

    Check the OSS note 451370
    The consignment settlement does not take partner function 'Invoice presented by' possibly stored in the vendor master into account but instead always creates the consignment invoice with reference to the vendor of the consignment goods.This vendor must be created in the relevant company code and purchasing organization.
    Other terms
    RMVKON00
    Reason and Prerequisites
    For the following reasons, the consignment settlement is unable to take partner role 'Invoicing party presented by' stored in the vendor master into account and can only create the invoice for the goods supplier:
    1. Normally, the consignment liability account is managed as a current account.The posting period and the vendor number are usually the sort and assignment criterion of the items on the account.Only by using this sort/assignment criteria can you determine from an FI point of view which consignment liabilities are created in a certain posting period for a certain vendor, and to what extent these were cleared by an invoice.
    2. The inventory management of the consignment stock is always executed for the goods supplier and the goods movements are always executed with reference to this vendor accordingly.The resulting posting of the consignment liability is therefore executed with the number of this vendor as part of the sort/assignment criterion.
    3. If the settlement of the consignment withdrawals does not then work with this vendor but instead works with the invoicing party assigned to this vendor, this would cause the posting on the consignment liability account to contain the vendor number of the invoicing party as a sort and assignment criterion, as the document only contains this vendor. Therefore, the postings could no longer be cleared and the documents could no longer be archived.It would also no longer be possible to execute evaluations via the consignment liability account for the determination of open items.
    For the above reasons, in consignment processing, you can only work with the goods supplier which must be created in the corresponding company code and the corresponding purchasing organization.

  • Consignment Settlement By MRKO

    Hi Friends,
    I know the consignment process from Consignment Info Record to MIGO. But when I am about to settle the consignment by using the T.code MRKO, I am not succeeding. Although when I am executing MRKO, i am getting the list of Consignment Stock. Further how to settle it, I don't know.
    Plz help me out.
    Thanks & Regards
    Saeed Arif

    Hi
    For doing consignment settlement we have to use MRKO. What are the necessary steps to be followed while dealing with this T.Code MRKO?
    For doing consignment settlement.
    you should have consignment PO ( item category K) with tax code
    Info recore is must with consignment
    when u received the good through movement type 101K no accounting do will generate. since it is not valuated materila ( it owns by the vendor)
    Transfer the consignment materila to own (movemetn type 411K ) or Goods issue to consumption( movement type 201K) ... now accounting document will generate.
    settele the the account through MRKO transcation.
    If you find error that messeage determination not set.... go the SPRP setting ..logistic Invoce verification > Messeage determination >>> maintain condition >>> create condition.... create for KONS
    Hope this will useful
    Regards
    Anand

  • Consignment settlement process MRKO

    Hi,
    I am working on PO with consignment first time I have made OBYC setting for consignment  KON , after that i hav ecreated PO migo and MB1B from consignment stock to own stock now i want to know the steps foe consignment seettlement how to do it with MRKO, when i execute it I can see the material document with with date and amount of that document on the main screen what is the further process to settle it. and also what settings are required to be maintain in MRM1 is it necessary
    regards,
    zafar

    HI,
    You can goto tcode MRM1, specify the condition type = "KONS" for consignment and Company code = 1000
    Remember not to specify the partner in the condition record.
    Then proceed to MRKO to do your consignment settlement
    One more setting, select the SETTLE and remove DISPLAY under the procesing option tab and execute the transaction..
    Regards
    KK
    Edited by: Kishore Kumar Galla on Mar 11, 2010 12:42 PM

  • How to Link Master Contract with other contracts

    hi,
             i am really getting hard time to link master contract with other contracts.i have already created master,quantity,value,material value contracts already.
    thanks
    bharat

    hi,
    below is the path to assign the lowr level contracts to master contracts
    step1: IMG--Sales and distribution salessales documentscontractsmaster contracts---define referencing requirements
    1.define reference sales document type: here lower level contracts are assigned to master contracts
    2.define referencing procedures: here filelds are categorized into 3 parts
    1.Identical fields: a master contract can only be referenced by a contract if the fields in the master contract and low level contracts matches
    2.Copy fields: the values of these fields are copied from master contract into lower level contract .deviating values in the lower level contracts are not allowed
    3. proposal fields: like copying fields are be over written
    choose the standard reference procedure SDGK and copy it and rename it (ZSDK)
    Select our procedure
    click on fields control button under dialog structure
    go to new entries and maintain entries in the table like below
    table   field name        partner function      copy rule   message
    VBAK          AUGRU                                            C                      
    VBKD          INC01                                               B                              
    VBPA          KUNNR                    SP                    A
    VEDA          VLAUFZ                                            A
    copying rule: A-check for agreement
                       B-always copy
                       C-copy only if AGree
    SAve it and exit
    Step2: go to transaction code VOV8 of GK
    sd document category=0
    screen sequence group=GK(Master contract)
    transaction group=4
    document pricing procedure=V
    contract profile=001
    group referencing procedure-ZDSK
    contract data allowed=X
    Check update low level contract
    SAve it
    Step 3: go to transaction code VA41
    Specify document type=gk
    specify the sold to party number
    specify the description
    specify contract start date=01
    specify the end date=10
    save it and note down the master contract number
    Again go to VA41 and raise quantity contract
    specify description
    specify contract start date and end date (like master contract validity periods)
    and assign Master contract number that was created in the previous step
    Save it and exit
    Go it VA41 of the master contract and check qty contract has been assigned or not
    reward points if the answer is helpful
    REgards,
    Murali

Maybe you are looking for

  • Oracle 8.1.5 for linux, install help.

    Does anyone have a successful installation of Oracle 8.1.5 running on Red Hat 6.0? I have tried to install it but, I can't get the installer to run. I get java errors when I run, runInstaller. I have installed jre1.1.6. Any help would be appreciated.

  • Windows 7 and World of Warcraft

    Hi, I built a new computer in June 2010. The specs are ASUS M4A785-M AM3/AM2+/AM2 AMD 785G HDMI Micro ATX AMD Motherboard, LOGISYS Computer PS575XBK 575W ATX12V SLI Ready Power Supply, AMD Athlon II X2 245 Regor 2.9GHz Socket AM3 65W Dual-Core Deskto

  • SD report :correlation between SD line item and its FI line item

    Hi, We are developing a SD report where we are not able to correlate between FI line item with SD line item.As SD line item have differernt division so how to identify which line item of FI belongs to which SD line item?

  • Cenvat to add on material during STO

    Dear experts, How we can load the cenvat cost on material during stock transfer from plant to plant within company code with shipping? Manoj

  • DEactivate refresh or Database

    Hello, i try to open a report with saved Data, but the report allways would refresh the database connection. Can i deactivate this Check/ Refresh ? I only need the saved Data in the Report. If i open the Report with the designer , i will also get the