Consignment Payments

Hello B1world,
Scenario: I have product that i have purchased on consignment. Payment back to the vendor is due every 90 days until the product is depleted & here is no interest involved.
The only information that i find in B1 help is setting up consignment for customers through warehouses. How do i do it if i'm the customer?

Your case is not belong to consignment scope in B1. You just need regular AP invoice with payment term of NET 90 or something like that.
Thanks,
Gordon

Similar Messages

Vendor consignment payment

Hi,
When I use/consume vendor consignment stock, will the vendor send me a bill/invoice
on the basis of which I pay the vendor?
Sincerely,
Ketan

Thanks for the reply. I am currently using MRKO to create the accounting document
on the basis of which I am paying the vendor. The vendor consignment process is still
in Test phase in my company.
But today I was reading about the customer consignment issue process from the vendors side
on SDN forums where in it was mentioned the vendor during the consignment issue process is
going to prepare billing document after being informed of the materials that were consumed.
If the vendor is going to give me a bill then whats the advantage of MRKO and how do I
process the payment?
Sincerely,
Ketan

How to payment the vendor against consignment PO

HELLO EXPERTS,
Can anybody help me how to PAYMENT my vendor against consignment PO. Because when i m doing a consignment PO,it is not taking any price ,than i go for GR and MIRO.
but in MIRO ,in PO purchase order reference when i give purchase order , it is coming that No (suitable) item found for purchase order
can any body tell me how to payment this vendor and how n where to give pricing value of that PO.
PLZ TELL ME ALL THE CUSTOMIZING IN DETAILS.
regards.

Hi
A warehouse can contain stocks owned by variousconsignment vendors. Settlement is based on the
material withdrawn from the consignment stock.As a result, Inventory Management and Invoice
Verification must fulfill special requirements.To support the procurement process for consignment
material, you can define conditions for consignment processing that are valid for specific periods. You
can enter these conditions in foreign currencies and include alternative units of mea-sure. For inventory
postings (for example, postings made for deliveries, good issues, confirmations for run schedule headers) and in the relevant preparatory phases, the system can suggest the stocks from which to withdraw material. In the strategies used for stock selection, you can have the system take both your
companys own stock as well as the vendor consi gnment stock into consideration.The R/3 System provides enhanced functionality for settling consignment liabilities. To make the process more transparent to the vendor, you can create consignment settlement documents and send them
to the vendor.
refer to link www.scribd.com/doc/2229268/MM-2-009-Consignment -
http://help.sap.com/saphelp_erp60_sp/helpdata/en/33/222138c2ebcc46e10000009b38f842/frameset.htm

Vendor payment terms & consignment

I have a question on how we can handle differet default payment terms for vendor consignment vs. other purchasing.
For example, we might pay our vendor at Net 60 for all normal purchasing but Net 10 for consignment. The vendor master payment terms (LFM1-ZTERM) are therefore Net 60. We have a PA with this vendor for the consignment goods which indicates Net 10, but since goods are moved from consignment to unrestricted (MB1B - 411K) against the vendor only and not the PA, it uses the Net 60 terms for the line items. AP is forced to manually change the terms on all line items. I do not want to change the default terms in the vendor master to Net 10; they need to remain as Net 60.
Any suggestions on this?

Hi,
Check on it:-
http://www.sapfans.com/forums/viewtopic.php?f=6&t=323186
consignment and payment terms
pherasath

Consignment settlement - payment terms

Hello,
I had a vendor that use to buy consignment and non-consignment part. Both consignment and non-consignment they have different payment terms. I found out that when we do consignment settlement the payment term is retrieved from vendor master. i try not to set payment terms manually everytime create a PO for non-consignment part. Is there any methods that we can use?
Thanks.

Dear Janice,
Maybe you can try to activate " Sub range" function in vendor master, with this sub range you can specify various Purchasing data for various plant.
Activate the sub range funtion in Tcode OMSG
Regards,
w1n

Consignment and payment terms

All,
I understand that during MRKO (the consignment settlement) the payment terms is pulled from the vendor master at the company code level. This is SAP standard.
Is anyone aware of anything in SAP that could change that default? For example during the MRKO settlement the payment terms would be pulled from the vendor master purchasing org level OR from the info record?
Regards,
Sandra

Hi
we can maintain payment terms in Inforecord in condition tab.
Raju

Reg.Payment receipt from customer against consignment.

Dear Friends
How payment is made in Consignment,Pipeline and thirdparty. Kindly advice.
Thanks
Rajakumar.K

Hi,
Your subject indicates Customer Consignment Process but your question asks about Vendor Consignment, Pipeline and Third Party Process???
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.
For Pipeline Process,
1. Create Pipeline Material under material type PIPE
2. You need to maintain the Pipeline Info Record in ME11. Here maintain the Prices and Tax Code mandatory
Also in SPRO > Enterprise Structure > Assignment > Materials Management > Assign standard purchasing organization to plant
There will not be any PO and GR Process for Pipeline materials. We consider that materials are available via Pipes in our plant and we have tp directly book consumption and then settlement of the same.
If Stock is directly consumed from Pipeline Stock via 201 P or 261 P via transaction MB1A or MIGO then following FI Entry will appear;
(GBB-VBR) Consumption Account - Dr
(KON) Pipeline Liabilities - Cr
Now do Pipeline Settlement in MRKO. Here you can not change the Invoice Value. Here following FI Entry will appear;
Vendor Account - Cr
Pipeline Liabilities - Dr
Prerequisite for MRKO: -
- Maintain condition record for output type KONS in MRM1
Then take printout of the Settlement Document in MR91.
Third Party Process Flow: -
1) MM01 - General Item category Group should be BANS in basic view of material master.
2) VA01 - Creation of sales order with VA01 transaction in SD module
3) When sales order is created system automatically creates a PR for the material with item category as "S"--> Third Party Item
4) ME21N - Directly PO with item category as "S" and delivery address as customer address
5) MIGO - Statistical GR by MM ( When it is made goods are received and delivered)
6) MIRO - Invoice by MM for vendor
7) VF01 - Billing by SD on Customers
Then FI transactions will be carried out for Payment by FI Consultant;
F-53 - Payment to Vendor
F-28 - Receipt from Customer

Open items of vendor consignment GRIR in F.19

Hello,
We are using vendor consignment, when stock transfer from consignment to local stock, it debit stock account and credit GRIR, when settlement, it debit GRIR and debit account payable, but in F.19 list, these two kind of transactions are all list on GNB area, and without vendor number and PO number, it's difficult for finance people to clear them. anybody can advise how to show vendor number in these list?
Thanks in advance & Best regards
Richard

Hi,
Here might be lot of reaons.
1. May be they are not reached to due date.
2. May be same vendor blocked to some other proposal
3.May be those items have payment block
4. May be Sepal GL Accounts not assign to All company coed Configuration
5. Invoice posted into different Payment method and payment terms
6. Please check the FBZP Configuration
Regards,
Surendra.

Credit management for consignment sale

Hi,
It is well accepted that in Standard SAP , for consignment sale process credit check is done in Consignment issue level as in this phase material stock is logically got diminished from valuated stock. But business dynamics need some solution with nature of business needs and from that point we need that how the same can be managed with consignment fill up. Consignment fill up is the stage where material is moved from plant gate to reach consignment agent's premises which is geographically may be located far away and this is the phase where user can want the credit check before dispatching more quantity with that of payment have received or with a threshold value of credit limit though the stock is under ownership of plant and that same will be transferred to customer after consignment issue.
now we have configured system in that way, KBN and KEN item category has been configured perfectly as needed(like credit indicator checked for KBN and unchecked for KEN item category).
But the problem is faced like following way.
Suppose I am doing a transaction of delivery against a consignment fill up order with value of 2 Lakh with that much credit limit and after making the delivery it got updated in FD32 open sales value (2 Lakh) which is correct in this context.
Secondly at the time of consignment issue delivery further open sales value is not updated with 2 Lakh which is also correct(as credit check is inactive as it should not be update the open sales value as 4 Lakh)
Lastly when we are preparing the consignment commercial invoice with reference of consignment issue delivery then after posting 2 lakh got updated in receivables in FD32 which is also correct but at the same time open value should be diminished to zero which is not updating and this is wrong as then credit exposure is calculated wrongly for next transaction. so huge value will be accumulated in open sales value for consigmeet agent and the same cannot be rectified by standard program RVKRED77 like normal customers.
So please explore what may be the solution for the same(may be any configuration setting) or if there any another correction program exists.
Regards
Indranil

Dear Mr. Lakhshmipati,
Thanks for your reply.
I need the input to be given that we are running the credit check with update group 000015 . So in this case S066- OEIKW will not update anytime.
As per note 492831 is declaring that for consignment fill up if the credit indicator is active but the table S066 - OEIKW will not update for open sales value in case of consignment fill up
But we have tested that after creation of the delivery against consignment fill up open sales value updated in FD32 (as item category KBN has set as credit active) and the same figure is coming from the table S067 - OLIKW.
But it is not duplicated with creation of the delivery from consignment issue(as for item catefory KEN this check is inactive) and after creation of the commercial invoice receivable got updated but same value should be cleared from S067 - OLIKW.
You can understand the situation.
Now there can be three aspects of it. Please check my points below and suggest if I am wrong.
1. For update group 000015, this table S067 is updated for delivery of fill up in standard SAP but never adjusted in after that and also there is no standard program for correction. So in this case either we have to forcefully update the table (by exit or by program) though it should not be the practice as there may be some inconsistency or we should discard this process.
2. We have to deactivate the credit check at consignment fill up level and to carry with credit check at consignment issue level as in that case under update group 000015 , after creation of commercial invoice posting receivables got updated with modification of open sales value by diminishing that much value.
3. We have to withdraw the credit check for case of consignment agent.
please suggest if any other aspect keeping in mind that we have to try our best to reach the requirement of credit check at consignment fill up stage as material should be blocked for delivery before vehicle starts from factory gate.
with last effort if there is really no way , so we have to go with standard SAP.
Regards
Indranil

Integration FI-MM ( consignment stock) - Accounting entries & Movement type

I want to understand the integration of FI & MM from consignment stock account.
Scenario
In Tcode OBYC what pre-requisite are required.
1. In which transaction ( BSX) where Finished good stock Account (Balance sheet Account) in maintained.
2 In which transaction (????) consignment stock GL is menetioned.
3 In which transaction (KON) change in consignment stock account ( P&L Account) is created.
4 In transaction (GBB) maintenance of cost of good sold account (P&L account) is required with account group
Suppose i have 10000 Inr worth of finished stock. We issue goods of 4000 inr worth to consignee & incurring 1000 packing charges.
The consignee sells 2000 inr worth to final customer & The consignor should be paid commison 10% & 5% charges for maintaining stock.
Ten consignee returns 2000 inr worth of goods
Please tell what accounting enteries will be passed along with movement types.

FI-MM: The integration between FI-MM happens in T-code OBYC.
1. When PO is created :
No Entry -
2. When GR is posted
      Inventory Account dr (Transaction Key BSX in OBYC)
            To GRIR account (T.Key WRX in T-code OBYC)
3. When Invoice is posted
      GRIR account Dr.
      Vendor account Cr.
4. Payment made to Vendor
      Vendor A/c Dr
            To Bank Clearing A/c Cr.
Points to know : Movement Types, Assignment of Movement types to T-keys (T-code OMJJ), Value string (I also need some information on this) , OMWN and OMWB transactions.
There is a close integration b/w FI & MM, actually document flows from MM to FI in the following areas such as,
1. Movement Types:
Used to enable the system to find the predefined posting rules determining how the accounts of financial accounting system are to be posted & to update the stock fields in the matrl master data.(Goods Receipt, Goods Issue, etc)
2. Valuation Class:
Assignment of material to grp of gl account, used to determine the gl accounts that are updated as a result of goods movement.
3. Transaction/Event key:
Used to control the storage or filing of documents & assignment of documents.Used to differeniate b/w various transactions such as goods movement tht occur in inventory.
4. Material Type:
Each material should assign mtrl type in mtrl master record used to update whether changes made in qty are updated in material master record & change in value also updated in stock account.

India: Customer consignment with trading goods

Dear all,
we need to implement customer consignment process with trading goods on a depot in India.
But I am lacking understanding how the process works with SAP:
Step 1) consignment fill-up:
We do goods issue, then J1IJ and then a create a proforma invoice. This invoice holding the RG23D entries goes along with the goods to the consignment location. But it is not relevant for payment towards the consignment customer as I have learned.
2) Consignment issue: When we do a consignment issue, how do we get the correct tax amounts into our invoice (BED, CESS, SeCess)? I am told that the excise is only billed to the consignment customer for the actual consumed quantity. This would be with the invoice for the consignment issue. But the pricing procedure does not pick up the partial excise values from RG23D as we do not create any excise invoice for consignment issue, but only SD invoice. So how to get the correct values in the excise conditions?
Can anybody explain to me how this scenario can be handled in SAP without entering condition values manually in the invoice?

Dear tortyv,
As per my understanding of the requirement,
You please check the "VL06" report if it satisfies your requirement you enter the execution parameters and execute.
System will give the list of out bound deliveries. Select one of those and click the details icon (ctrlshiftf3) according to the item view or headder view.
If it does't suit you have to go for z report.
I f you want that please provide the input fields in order to fetch the required data for the report.
Thanks&Regards
Raghu.k

Payment/Credit Limit for Vendors

Hi SAP Gurus!
Is it possible to impose a maximum payment/credit limit for Vendors in SAP?
I saw in this forums that it can be done through Contracts but in the contracts, you have to enter a material. Is it possible that you don't have a material and the contract will encompass all the transactions of the vendor?\
Hope to hear from you soon!
Thanks in advance.

Hi,
You can make use of following Features of Contract w/o materials;
Item Categories in Contracts: -
Just as with purchase orders, you can enter an item category to define the item as an external service item, a consignment item, a subcontracting item or as a free-form text item.
Item Category M (Material Unknown)
Item category M is for entering contract items without specifying the material number.
Item category M is recommended for similar materials with the same price but with differing material numbers.
Example
Consider a contract item for different types of office paper. The various types of paper have the same weight, quality, and price. However, they differ in the following respects: One type is lined, another is unlined, and another has two holes on the left side for filing purposes.
How Do You Use Item Category M?
In the case of items of category M, you enter the short text (short description), target quantity, unit of measure, and price. As soon as a contract release order is created, the material number or a short text is entered (e.g. the exact type of paper, say, two-hole punched). The system determines the net price on the basis of the gross price entered, less any discounts.
Item Category W (Material Group)
Item category W allows you to enter a material group without entering the value or quantity of the contract item. Item category W is for value contracts only.
Example
Consider a contract for cable. The contract covers every type of cable on the vendor's price list. The exact type of cable is known only at the time a specific cable is ordered.
Instead of entering an item for every type of cable the vendor is able to supply, you could enter item category W and the material group (say, CABLE). The short text would indicate that the contract item covers all types of cable supplied by the vendor.
Each release order issued against this contract would then specify the actual type and quantity of cable (for example, double-shielded coax, 1 spool) as well as the price.
How Do You Use Item Category W?
When you create the contract item, enter the item category W, the short text, and the material group. You do not enter a price or conditions for the item. However, it is possible to specify conditions in the document header. For example, you can enter a discount in the header conditions if the vendor grants a discount on all Pos relating to the contract. The discount is automatically taken into account when the release order is created.
You can enter a material number in the contract release order. The corresponding material master record must be assigned to the same material group specified in the referenced contract item. If the release order does not have a material number, then it must contain a valid account assignment, such as a cost center.
Also refer following link;
[Item Category/Account Assgt. Category in Contracts|http://help.sap.com/saphelp_erp60_sp/helpdata/en/75/ee1fa755c811d189900000e8322d00/frameset.htm]

MRKO Consignment by Sales

We got a deal with a supplier where we get consignment raw material, and pay it after we sell the finished product.
The problem its that the quantities for the sales will never be the same as the MIGO documents or the tranfsfer movements. (Since the supplier gets a report of the exact quantity we sell its seems to be an issue there)
Its there an option to pay consignment materials thru the quantity sold in a certain period?
Regards,
Carlos

Dear,
consignment raw material, and pay it after we sell the finished product
You get RAW MATERIAL and process it to make finish product and sell it.
quantities for the sales will never be the same as the MIGO documents
Yes the quantities received compare to finish product is not same.. In this view is there any contract / agreement with vendor ... about any differences.. I assume that from the raw material some may be wasted, some qty may be production loss etc etc (I guess this you are considering for quantity differences).
Its there an option to pay consignment materials thru the quantity sold in a certain period?
Is there any standard measurement to claim this much quantity raw material used in producing certain volume of finish product.. If this analyse and fixed by your production planning department and an agreement exists with supplier... you can make payment basing on this (I Hope there will a unique vendor for supplying raw material and no question of r/m from diff. vendors and mix up in production.
Usually, SAP standard Consignment process, supports whenever you withdraw stock for consumption, it considered as liability for the vendor and has to pay for the entire quantity.
Regards,
Syed Hussain.

Consignment Scenario

Dear Experts,
We have the consignment business scenario below:
1. Supplier sends the materials to our location
2. Every Monday we count all the remaining materials to determine actual consumption.
3. We report the materials used to supplier with a PO.
In SAP, what we would like to happen is:
1. Receive the stocks to vendor location consignment via 501K without reference to PO.
2. Only during consumption, we generate the PO that will be used for invoicing/billing for payment to supplier.
How can we setup the SAP step 2 above? Company likes to issue the PO only at the time when we know the actual consumption only and not during the receipt of the consignment stocks.
Thank you!

Please follow the standard SAP vendor consignment process. In it you'll see that payment is not done at goods receipt, but ather exactly uppon consumption.
http://help.sap.com/saphelp_erp60_sp/helpdata/en/4d/2b8f4c43ad11d189410000e829fbbd/content.htm

Payment Terms no working

Hi Friends
I have a vendor 5025786 for co.code 1200, who has consignment documents as well as IR's posted through MIRO. The payment terms on the master record is NT30, but when the consignment documents get posted to the vendor's account it does not have the payment terms, instead it just shows 0 days eg. document 3700102698, 3700099858 co.code 1200. Well those posted through MIRO have the 30 days payment terms. I would like to know as to why the payment term field on the consignment IR's is blank instead of 30 days. As a result now the consignment documents for this vendors get paid immediately
Thanks in Advance

Dear ,
please check the Master data u maintain the Payment terms in both places 1) Fi co code data
2) purchase org. data. if the entry is coming from MM system is picking the payment terms from purchase org. and if u r entery is related to financial system is picking the payment terms from co. code data.
Regards
radha

Consignment Payments

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