SD -Consignment Accounting

Dear Experts,
Consignment Process:
Invoice is prepared as per price list i.e. 50% of MRP(not sale) and VAT @12.50%(on 50% MRP) on Invoice. (to create VAT liability in the state and by that only VAT GL should hit). After receving the stocks C&S Agent is liable to pay VAT at 12.5% on MRP on 100% of stock. The net revenue of 87.5% will be send back to Client. On submission of VAT Document the C&S agent will get the VAT Credit as M&B is already paid on 50% of MRP value.
Please give me accounting entries and how can i configure this in SAP??
Thanks in advance
mammu.

Hii
As per your Question following entries generates during Consignment process
Consignment Fill-Up -
> Not relevant for Inventory accounting as it is internal movement of stock from normal stock to Consignment Stock
                                          No Accounting Entry Generate Not relevant for Invoice
Consignment Issue -
>   Inventory accounting generates
                                           COGS        Dr.
                                           Consignment Inventory    Cr.
                                          Relevant for Invoice
                                          Consignee Dr
                                           Discount     Dr
                                          Sales Revenue Cr
                                          Sales Taxes Cr
Consignment Return -
> Generate credit memo to Customer
                                              Customer         Cr
                                              Sales Revenue Dr
Consignment Pickup -
> No accounting entry will be generated as inventory will be return back to Normal stock to Consignment Stock.
Regards
Shambhu Sarkar
Edited by: SHAMBHU SARKAR on May 15, 2011 11:33 AM

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Vendor Consignment - Account assignment

My client wants to settle vendor consignments in two steps:
1. In the first step, they want to post the consignment to an interim G/L Account, instead of the vendor recon account as follows:
Credit Interim G/L Account (instead of the vendor recon account)
Debit Consignment Payables Account
2. In the second step, they want the following posting:
Credit Vendor account (recon account)
Debit Interim G/L Account
By using transaction code OBYC I am only able to change the account determination for Consignment Payables Account. The problem is I do not want to change the consignment payables account. Instead want to change from the Vendor Reconciliation account to an interim G/L account. Please can anyone help?
<i>(Note: SAP standard process settles consignment as follows:
Credit Vendor a/c (recon)
Debit Consignment Payables a/c)</i>

MG,
I don't have answer to your query but you might have an answer to mine. I am looking for general modification for consignment payables account (KON). If you can help me, I would appreciate it.
Thanks
Syed

Reprinting of consignment stock accounting

hi,
we have some consignment settlement done in last week. But some of the invoice were not printed. We have setup in our system that the spool will only last for 7 days then it will be deleted after that.
Now, if i want to reprint the consignment accounting statement, where could I locate this and print them again?

Hi,
If you know accounting document number you can repeat printout via MR91 output type KONS processing mode 2.
If you do not know document number you can execute MRKO (display,settled withdrawals) select line, press messages,set processing mode 2 and execute and finally again execute on the next screen. Hope it works. Thanking you.

Can I assign the exchange rate data to consignment when I use MRKO

We with the selling on consignment supplier are the foreign currency transactions
The exchange rate was changed between the consignment withdrawal in inventory management and the posting of the consignment invoice.
Then the transfer posting occur between consignment liabilities account and an exchange rate difference account .
The consignment liabilities account is not cleared afterwards.
I want to know how can I configure for the consignment liabilities account is cleared.

The functionality with the clearing of the consingment account
after you posting the invoice isn't available here.
It means if there different exchange rates were used
in the inventory management
and in in the transaction MRKO, the consingment account won't be
cleared in the local currency. You have to do it unfortunately
manually in FI.
The transaction MRKO just posts the invoices with the posting date of
the documents. You have to post manually from the consignment account
to the exchange rate gain/loss account. Sorry about it but this the only
way to do it. Otherwise, the exchange rate will be taken from table RKWA
Check note 393571

Accounts hit during different MM transactions

Could anybody help in knowing the accounts hit during below transactions in MM.
With Std price method of valuation, during different scenarios - GR, IR & Payment
Normal procurement from vendor - accounts debited, credited, accounts hit in case of price difference
STO between plants - accounts debited, credited, accounts hit in case of price difference
STO between co codes - accounts debited, credited, accounts hit in case of price difference
Subcontracting - accounts debited, credited, accounts hit in case of price difference, accounting of bi product & scrap
Consignment - accounts debited, credited, accounts hit in case of price difference
With MAP method of valuation, during different scenarios - GR, IR & Payment
Normal procurement from vendor - accounts debited, credited, accounts hit in case of price difference
STO between plants - accounts debited, credited, accounts hit in case of price difference
STO between co codes - accounts debited, credited, accounts hit in case of price difference
Subcontracting - accounts debited, credited, accounts hit in case of price difference, accounting of bi product & scrap
Consignment - accounts debited, credited, accounts hit in case of price difference
Thanks
Muralidharan B

Hi,
For Domestic Procurement of Raw Material
            During GR
Material Stock             Dr.
GR/IR clearing                        Cr.
            During Excise Invoice Credit
Cenvat Account          Dr.
Cenvat Clearing                      Cr.
            During Invoice Verification
Cenvat Clearing          Dr.
GR/IR Clearing           Dr.
Vendor Payable                      Cr.
For Import Procurement of Raw Material
            During Customs Duty Clearing invoice
Custom Clearing         Dr.
Custom Payable                      Cr.
            During GR
Material Stock             Dr.
GR/IR clearing                        Cr.
            During Excise Invoice Credit
Cenvat Account          Dr.
Custom Clearing                     Cr.
            During Invoice Verification
GR/IR Clearing           Dr.
Vendor Payable                      Cr.
For Excise Duty Credit of Raw Material without PO
Cenvat Account          Dr.
Cenvat Clearing                      Cr.
For Excise Duty Reversal through Excise JV
Cenvat Clearing          Dr.
Cenvat Account                      Cr.
What should be my accounting entry when the goods are issued through MM and excise invoice is created (J1IS & J1IV)?
During Excise Invoice Creation
Cenvat Suspense Account      Dr.
Cenvat payable                                   Cr.
For TR6C Challan
PLA Account              Dr.
PLA on hold Account             Cr.
During Fortnightly Utilization
Cenvat payable            Dr.
Cenvat Account                      Cr.
PLA Account                          Cr.
Note: Cenvat Suspense Account should be cleared appropriately using FI JV's.
What should be my accounting entry in subcontracting reversal / Recredit?
For Subcontracting Challan Reversal
Cenvat Reversal          Dr.
Cenvat Account                      Cr.
For Subcontracting Challan Recredit
Cenvat Account          Dr.
Cenvat Reversal                      Cr.
pherasath

Movement Type for Finished Goods transfer

Hello all;
I'm looking for the correct movement type to use to execute a stock transfer between consignment accounts. I have a sold to with consignment inventory and I need to transfer it to another consignment sold to account (with serial numbers). I doing this via an ABAP program using the BAPI BAPI_GOODSMVT_CREATE however I can identify the correct movement type for this type of material movement.
If one does not exist can someone let me know if it's possible to create one?
Thanks!

To Coy the movement type you can use Tcode OMJJ adn follow as described below.
In the dialog box Define work area, enter the movement type you want
to copy in the From: field. In the To: field, enter the name of the
movement type that you want to recreate. To go to the overview of the
selected movement types, choose Continue.
Select the movement type you want to copy, and choose Edit -> Copy as.
Overtype the selected movement type with the new movement type
(beginning with 9, X, Y, or Z) and copy all dependent entries.
The system copies all control indicators from the reference movement
type to the new movement type.
Check all views for the new movement type and, if necessary, change
the control indicators. Please note that some views have a detail
screen.
Copy the reversal movement type and enter it in the view
Reversal/follow-on movement types.
Save your settings.

Post freight cost to a different a GL account during 411-K for consignment PO Process

We are planning to implement PO consignment for one of the client.
The scenario is, client pays the freight cost to the supplier in advance upon receipt of consignment stock .When consignment stock is moved to own stock (411k), during the movement of the stock we need to create two accounting entries one for the material cost and the other for freight cost such that the freight can be adjusted with advance paid freight cost. Freight cost can be settled manually with another PO but the requirement is moving average price of the material should include the cost of material and freight cost .
For an example if the material cost is $100(PB00) and freight cost is $10(FAR1 - 10%), during 411k it should create two entries one for material cost($100) and the other for freight cost($10) which can be adjusted manually.
We tried by adding freight condition (FRA1) in consignment info record along with PB00 –Gross price and in this case during 411k it is summing both the prices($110) and posting to one GL account and the same settles during MRKO but what we are looking for is how we can split this into $100 and $10 .
I know standard SAP does not support this this during 411k.
I want to know if there is any User exit, pricing procedure, routines, etc... Or any other way that can be used to achieve this requirement. Appreciate more detailed answer

Hi,
   As you know, currently the delivery cost are not supported in consignment and pipeline settlement. The system design is explained in the note: 208555 - MB11 Delivery costs for pipeline and consignment.
   If you want delivery cost in consignment, you have to go for development. There should be additional entry for delivery costs in RKWA table. I am not sure about the feasibility, but still would like to share the below points:
   For creating additional entry in the accounting document while doing MB1B / MB11, you may check the BADI AC_DOCUMENT.
   You may refer the note: 165647 - Documentation: Enhancement RMVKON00 (MM-IV) which explains some enhancements related to consignment settlement.
Regards,
AKPT

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.

G L ACCOUNTS FOR GR of consignment

Hi,
Can anybody tell me what are all the GL Accounts to be generated at GR of consignment.
regards,
rakesh

Hi,
The Accounting Generated for Consignment Process 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
Regards,
Biju K

Accounting Entries for Consignment - with CIN Entries

Following are steps in consignment sale:
1. Consignment Fill-Up (From factory to consignment agent)
2. Consignment Issue (From consignment to end customer)
3. Consignment Pick up
4. Consignment Returns
I searched in SDN forums. It says that there is no account entries at the time of consignment fill up.
But I want accounting entries in at the time of 'consignment fill up' also.
Entry should be:
Consignee A/c ... Dr (Customer)
   To Consignment Sales contra A/c
Excise Duty Paid A/c.. Dr
   To Excise Duty Payable A/c.
At the time of issue:
Delivery:
Cost of Goods Sold A/c.. Dr
   To Inventory A/c
Billing:
Consignee A/c.. Dr (Customer)
   To Sales A/c
   To VAT Payable A/c
Please help how can i get above entries entries?
Will I have to create two distribution channel for hitting Consignment sales contra A/c (in step1) and Sales A/c (in sept 2)

As you are aware even in normal sales, only when you generate a commercial invoice, customer will get debited. But in the consignment fill up process, you only generate F8 delivery related proforma and hence, your requirement cannot be achieved.
G. Lakshmipathi

Manually clearing for consignment liability account

Hi all,
we have to manually do a FI posting to clear the consignment liability account, but there are 2000 line items, so I'm wondering if there is any automatic clearing process like GR/IR clearing ( MR11) for consignment liability account? Or can we run a program to clear this account?
please advise.

Hi Anand,
I havn't got any solution on that, based on SAP notes 487162, the solution is:
In this case, you either must not use such taxes or you must carry out a manual clearing between the consignment liabilities account and a suitable account in FI using Transaction FB01 or FB60.
so I think this is our solution for now,I'll keep u update if we found a better solution.

Automatic clearing process for consignment liability account?

Hi all,
we have to manually do a FI posting to clear the consignment liability account, but there are 2000 line items, so I'm wondering if there is any automatic clearing process like GR/IR clearing ( MR11) for consignment liability account? Or can we run a program to clear this account?
please advise.

uncheck docs which can be cleared and try , make sure test run is on.
try with other gr/ir as well just too see if this tcode serves the purpose.

Consignment Process Accounting Entries on AP and AR

Hi Gurus
Can you Please let me know the accounting entries in detail for the Consignment Process on AP and AR side?
Please rephrase me if the question is represented incorrect
I have never worked on the Consignment Process
I really appreciate for your helpful answers
Thanks
Regards,
Meenakshi.N

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. You need maintaion all like ME11,ME01 and account assignemnt for KON in OBYC.The steps ME51,ME21,MIGO,MB1A,MRKO
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
Found it from the other link below Vendor Consignment
Thanks
Meenakshi.N

Consignment fill up with accounting document

Dear experts,
we want to implement costumer consignment process, using standard SAP procedure however legally when stock is sent for consignment (corresponding to a stock fill up) we need to move its value from an account to another (we must credit general stock account and put the respective value in an account that expresses value of stock in consignment). So stock still belongs to our company but on GL reports it is shown in a special account.
I've tried to create a new movement type copying 631 but I could not find a way to create accounting document needed
Can anyone give me some hints?
Best regards
Joana Trigo

Hi,
Check the country specific documentation for where this is a legal requirement.
The standard does not use seperate Stock accounts in the G/L, so such a function is probably only found there.
I suspect that the actual legal requirement is not to have a seperate G/L account, but to be able to report these seperately (covered by standard MM Reports).
Kind regards

Consignment Fill up vallid for accounting document

Hello,
I want to create accounting document during Goods issue in Consignmentt Fill up.
Actually We want to bill customer at time of consignment fill up.
Please suggest for required settings for the same.
Regards
Amit

Dear Amit
Conceptually and Practically also consignment fill up order is not supported with commercial billing and when the consigement fill up stocks move out of a manufacturing plant to make excise invoice we create proforma invoice in consignment fill up and proforma invoice doesnot update or impact accounting
Hope this clarifies your doubt
If you sell a customer a material A on consignment fill up say 100 units that means you are keeping your valuated stocks at his premises thinking that he will use that and so that we can make sale
This is consignment fill up no commercial invoice the ownnership belongs to us
If he takes 50 units out of this then it is Consignment issue this is supported by commercial billing as we make a sale here
The balance 50 units is taken thro Consignment pickup again there is no commercial billing here as we take back our stocks only no sale
Suppose after some time the customer returns 5 units which was sold thro Consignment issue then it is Consignment returns which is supported with commercial billing as we give credit memo for that 5 units
Regards
Raja

SD -Consignment Accounting

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