Vendor consigment process

Hi,
I want to know the detail step of customizing and also how to process a consigment PO and how to clear the vendor payment, and initially as in consignment we are giving payment after consuming of material then how to make GR if vendor is under excise register.
regards,
zafar

Hi,
Consignment Stock means your Vendor stores there material in your company premises.When ever you want you can use it as per your requirement. Unless you consumed, It is regarded as non -valuated stock. PO can be created with item category K( ME21N)
The steps are:
1. Consigment info record(ME11),
2.Souce List(ME01)
3.PO with item category K( ME21N)
4.GR WRT to PO (stock will be shown as material provided by Vendor)
5.Consuption Posting (Creates Invoice automatically)
6.Invoice Verification in MRKO.
7.Payment to vendor(F-53)
The account entries in GR,GI and IR are as follow;
A.Goods Receipt:
No Accounting Documents
B.Goods Issues:
Consumption A/C: DR,
Consignment(Liability Account ) Payable: CR,
C.Consignment Settlement:
Consignment (Liability Account )Payable: DR,
Vendor Account A/C: CR
For more check the link:
http://help.sap.com/saphelp_erp2005/helpdata/en/4d/2b8ec943ad11d189410000e829fbbd/frameset.htm
Regards,
Biju K

Similar Messages

Vendor consigment process combined goods issue to cusotmer

Hi, All,
I have some questions on the consignment process.
One Scenario: For the MM consgiment without delivery to customer. I listed some steps with my questions below:
1. Create Consigment info record. Is it necessary?
2. Create consignment purchase order Item category K. Is there any special setting?
3. Goods receipt against PO. What's the movement type here? What's the movement type 201 K and 231 K used for? If 101, is it goods receipt to own stock?
4. No invoice verification done, but settlement is done through MRKO transaction. Is it paid consigment fees to vendor by this t-code? What's the accounting happened?
Two Scenario: For the MM consgiment with delivery to customer. I listed some steps with my questions below:
1. Create Consigment info record. Is it necessary?
2. Create consignment purchase order Item category K. Is there any special setting?
3. Goods receipt against PO. Placed in own inventory with a stock category of K. What's the movement type here? what means stock category K?
4. Create normal sales order.
5. Must remove the K from the inventory before a batch can be selected on the delivery-
a. MB1B- 301 transaction is used to removed the K and to reference the delivery number
b. Depending on if location is inventory managed an LU04 may be necessary to complete the movement off of K .
Why movement type 301 is here?
5. Create delivery and PGI (The quantity is different when you do goods receipt for this material)
6. Invoice to customer
7. Payment for that Purchase Order thrgouth MRKO. The issue is only paid to vendor based on the quantity which sent to customer, not on goods receipt. How it can be achieved?
Three Scenario: Is there any process create MM consgiment with delivery directly to customer? What's the process, movement type and what's the difference?
Thank you very much in advance

Hi,
1. Create Consigment info record. Is it necessary?
           Yes, for consignment process, inofrecord is must, price will be picked only from inforecord, you can't enter price in PO.
2. Create consignment purchase order Item category K. Is there any special setting?
           Item category K is standard for consignment PO.
3. Goods receipt against PO. What's the movement type here? What's the movement type 201 K and 231 K used for? If 101, is it goods receipt to own stock?
Movement type is 101, 201k & 231k is for goods issue.
Its not good's receipt ot own stock, its goods receipt to unrestricted stock with stock indicator as K, later you can take to your own stock through 411k.
4. No invoice verification done, but settlement is done through MRKO transaction. Is it paid consigment fees to vendor by this t-code? What's the accounting happened?
For example If you manage material A of vendor X as consignment stock at a price of $ 10 /piece.
When 100 pieces are withdrawn for consumption, the system makes the following
postings when the withdrawal is settled:
During Withdrawal
Consumption account                               1000 +
Liabilities from consignment stores            1000 -
During Settlement
Liabilities from consignment stores   1000 +
Vendor account                                1000 -
For your scenario 2, follow the same steps as mentioned above and do the goods issue directly from consignment stock.
You can do the settlement to vendor only for the stocks that you consumed.
Regards,
Prabu
Edited by: prabu krishnasamy on Apr 25, 2009 12:13 PM
Edited by: prabu krishnasamy on Apr 25, 2009 12:14 PM

Consigment process with excise processing

Hello,
I would like to know the complet vendor consigment process with Excise Processing.
Thanks
Manish

Hi,
      Process:
                        Before you can order a material from a vendor or post a goods receipt to consignment stock, you must maintain the consignment price for the vendor in an info record. The price is required for material valuation and accounting purposes.
If you order consignment material from several vendors, the system maintains the consignment stock separately for each vendor, since the individual quantities of the material can have different prices with each vendor.
                     You can order goods from external vendors as vendor consignment goods. You carry the goods in the vendor consignment stock in your site and therefore they remain the property of the external vendor (special stock manager) and do not belong to your valuated stock.also they are not considered for your MRP planning.
This contains the following main functions:
·        You can order goods from an external vendor as consignment goods by setting the Consignment item category manually in the purchase order.
·        You can transfer goods in the consignment stock of your site to other sites. To do this, you post goods manually from the consignment stock to your own stock. This creates a legally binding contract with the external vendor.
           Settlement of the withdrawal is done regularly at an agreed time for eg. quarterly,half yearly...
Activities in Materials Management:
Activity:                     Display Consignment Stocks/ Settle Consignment/Pipeline Liabilities
Transaction Code:       MB54 /    MRKO    Respectively...
Hope it helps you clear the basics of consignment...

Best Practice for the Vendor Consignment Process

Hiii ,,,
Can anybody have the best practices for the Vendor consignment process???
Please Send me the document.
Please explain me the Consignment process in SAP??
Thanx & Regards,
Kumar Rayudu

Hi Kumar,
In order to have Consigment in SAP u need to have master data such as material master, vendor master and purchase inforecord of consignment type. U have to enter the item category k when u enter PO. The goods receipt post in vendor consignment stock will be non valuated.
1. The intial steps starts with raising purchase order for the consignment item
2. The vendor recieves the purchase order.
3. GR happens for the consignment material.
4. Stocks are recieved and placed under consignment stock.
5. When ever we issue to prodn or if we transfer post(using mov 411) from consignment to own stock then liability occurs.
6. Finally comes the settlement using mrko. You settle the amount for the goods which was consumed during a specific period.
regards
Anand.C

Vendor return process

Hi ,
Can anyone please tell me when do we use delivery type RL and when delivery type RLL during vendor return process. I am having some PO s in the system for which return is done with some deliveries having delivery tepe RL and some RLL.
Thnaks
Rohit Chavan

Hi Rohit,
I checked existing deliveries in our sandbox system and I found out:
- "RL" delivery type is used if you create the delivery with reference to a return PO item (mvt 161)
- "RLL" is used if you create return delivery from MIGO (A02-R02) (refering to the material document of GR) and check the "Via Delivery" checkbox (mvt 122)
What is the difference between mvt 161 and mvt 122 return, youcan find many threads on the forum and you can also check SAP online help.
Regards,
Csaba

Vendor return process clarification

Hi All,
We have created return PO for vendor.
While posting goods receipt system is asking excise invoice no and date, which excise invoice no has to be entered ?
and after posting we have to go to J1IS transaction and adjust duties for return process.
Over here the duties are not flowing in J1IS transaction.
Please throw some light.
With Regards,
Vijaykumar P

Taxes are not flowing in J1IS transaction.
While doing J1IS , Click on the "Get Excise Invoice" Button on the header screen menu, This will open up a screen for you to select the appropriate Incoming invoice for reference, the base value will be picked up from this .
Also Check the configuration setting SPRO-Logistics General-Tax on Goods Movements-India-Basic Settings-Maintain Company code settings-No. Exc Sel & ExSelDays columns against your plant.
Check below link widely discussed subject,
[Vendor Return Process |Re: Vendor Return Process]
[Return to vendor (Excise material)|Return to vendor (Excise material)..?]

Vendor create process using workflow

hello,
I have been assigned a project to desgin a process to automatically create a vendor. below is what I think has to be done. can this be reviewed to see if this is the correct approch and if not, suggest a better approach.
1) the vendor will sign onto our portal and submit their information to have them created as a vendor in our system. this information will be stored in a custom table
2) the portal process will have a ABAP program that generates the screen for the user to enter thier data. this program will also start a workflow that will send a notification to a person inside our company for them to review the information and decide weather the vendor can be added.
3) if the person approves the request, the workflow will submit a process to create the vendor, and send a approval email to the vendor
4) If the person rejects the process, the workflow will send an rejecction email will be sent to the vendor
I am in charge of creating the workflow and submitting the vendor create process
thanks in advance for the help

Hi Anil
Take a look at the Workflow collateral located on http://otn.oracle.com/products/integration/content.html.
I'd also suggest looking at the Sample Workflow Processes included with Oracle Workflow.
There are also some on demand Oracle iLearning courses (ilearning.oracle.com) which should be very useful for you.
Cheers
Mark
Hi,
Could anyone give me a case study describing how to create a new process using workflow builder? Where are the notifications saved in the database? Where is the process saved? Give me a general flow of events in the creation of, say a document management process wherein all these details are specified. A document containing the whole flow involved in the creation of a process using workflow builder. What all PL/SQL procedures I need to write and all. I have both workflow server and builder installed.
This would be of immense help.
Regards
Anil

Vendor Prepayment Process - SAP best practice

Hi Friends,
I am looking for SAP Best Practices for Vendor Prepayment process.
Could you guide me step by step approach..
Is there any config ?? I have maintained Prepayment Indicator in Vendor Master..
Please throw some light..
Regards,
Jackie

Hi
check following link
[http://help.sap.com/bp_mediav1600/Media_US/HTML/Scenarios/V1B_MED_Scen_EN_US.htm]
[http://help.sap.com/bp_mediav1600/Media_US/HTML/Scenarios/V1C_MED_Scen_EN_US.htm]
Regards
Kailas Ugale

Vendor consignment process.

Hi All,
We are going live next week and client has Vendor consignment process.
I'm looking for help on the following steps.
1.Vendor consignement a process steps
2.Account determination step(OBYC)
3.Accounting postings for vendor consignment(T-accounts)
Any help is appreciated.
Thanks,
Anusha

Anusha,
Activate Consignment inforecords using tcode OMEV. This activates the consignment prices to be picked up using the consignment info records.
configure a special procurement type using IMG->Production->MRP->Master Data->Define special procurement type.
In OBYC configure the consignment payables account (transaction KON).
Assign the special procurement type created in step 2 to all the materials that are to use the consignment process. This is done in the MRP2 view of the material master maintenance transaction
Create Consignment info record using tcode ME11. Select info category as consignment. Create general data, Purchase Org data and conditions. Conditions allow you to create time dependent prices.
Create PR/PO using the item category K. Due to the nature of these items, price is not applicable and so do not enter price. During consumption, the price will be picked from the consignment info record.
The following transactions are used in consignemnt MB54 - Consignment stock MRKO - Settle consignment liabilities. Consignment stocks are not included in the company stock valuation. It is normal, as the ownership is still with the vendor.
Thanks
Sri

Vendor Evaluation process (with QM module not implemented)

Hi
Can I have more input on Vendor Evaluation process (with QM module not implemented) please ?

Hi,
Vendor evaluation can be automatic, manually or semi automatic. It is done on 4 criteria;
1.     Price
2.     Quantity
3.     Delivery
4.     Service
VE is done at p.org level, the Maximum no. of criteria that can be used are up to 99.
IT is done in 4 steps:-
1.     Define Weighing keys( equal weighing for all criteria or unequal weighing )
2.     Define criteria
3.     Define Scope of list
4.     Define Pur. Org data for vendor.
5.
SPROMMPURCHASING --- VENDOR EVALUATION
ME61 Maintain vendor evaluation (Put p.org and vendor)
Then ME65 Ranking list of vendor.
Regards,
Vivek

Vendor Evaluation Process

Hi all,
I want to know the vendor Evalution process in SAP. Plesae povide any documentation for it.
Regards,
Kapil.

Hi,
Vendor evaluation is the process of analyzing and assessing the performance of the vendors of the external vendor. In this processes vendors are allowed to score in different criteria and the highest scored vendor is selected for procurement.
Follow the bellow steps:
1. SPRO>MM>Purchasing>Vendor Evaluation> Define Weighting Keys
Select.Equal Weighting or Unequal Weighting
2. SPRO>MM>Purchasing>Vendor Evaluation> Define Criteria
Price,
Quality,
Delivery,
Service
For each criteria you will have Sub criteria
Criteria Sub-Criteria
Price, 1.Market Price,2.Price Lsit
Quality, 1.Goods receipt,2.Quality Audit
Delivery 1.On time deliver,2. Confirmation,Shipment Intructions
Service 1.Inovative, 2. Flexibility
3.SPROMM>Purchasing>Vendor Evaluation-->Define Scope List.
4. SPROMM>Purchasing>Vendor Evaluation--> Maintain Purchasing Organization Data
5. ME61
For more check the links:
http://www.sap-img.com/mm009.htm
http://help.sap.com/printdocu/core/Print46c/EN/data/pdf/MMISVE/MMISVE.pdf
Regards,
Biju K

Vendor selection process

Hi,
Can anyone tell me about vendor selection process & Vendor performance system.
Regards,
Dinesh

Hi,
Selection process can be done based on Quality, Rate, History etc,.
Vendor performance :nothing but vendor evalution.
Pls refer following links, You can get more details.
http://www.sap-img.com/materials/what-is-request-for-
quotation.htm
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMISVE/MMISVE.pdf
http://www.sap-img.com/mm009.htm
Regards

How can I manage a vendor approval process in SAP?

Please guide With regards to vendor approval Process & also share if u have case study

HI
Use me61 transaction code.
If you are talking about the approval of vendor such as prototype sample, ppap sample and regular supply, and if this is your flow, then, by activating the profile in the quality info record for each material / vendor combination, the functionality can be made use of. Check whether this meets your requirement.
All The Best
Do reward Points

Back Flushing Vendor consigment Material in process order

Dear Experts,
I have a question Regarding Vendor consignment back flushing
while i am doing order confirmation system not proposing vendor name and in good movement tab
may i know what configuration or master data setup is missing
My requirment is i need to back flush vendor consginment material automatically
currently i need to manually choose the vendor while confiming the order
Thanks in advance
Rgrds
Raj

Dear Experts,
I manage to use stock determination group for back flushing consignment material
it works fine system automatically picking up vendor as we do not have multiple vendors
now i have new issue
for instance
i have a RAW material A used in a Product A when i do confirmation system can able to do back flush with movement type 261 K
i am using same RAW material A used in product B and when i do confirmation system give me a error
as below
Pipeline/consignment movement posted without value
Message no. M7234Diagnosis
The system has determined a consignment/pipeline price of 0.00.
Possible reasons:
The system could not find any valid condition for the posting date in the consignment/pipeline info record.
A price of 0.00 was defined in the info record.
System Response
Depending on how the system is configured, the message can be either a warning or an error message.
A withdrawal from this consignment stock or from the pipeline will not create vendor liabilities. For materials with moving average price control, withdrawals are posted without value. For materials with standard price control, a price difference posting is carried out.
The message is also issued when materials are received into consignment stock, as the system must check whether a consignment price of zero is required.
Procedure
If you have authorization, check whether the conditions or the price has been defined correctly in the info record, if necessary. If there is a condition with a price other than zero, check whether the posting date of the movement lies within the condition's validity period.
Proceed
just wonder does any one have this issue
so strange i can issue to product A and not product B
Please help me if you have any problem
Rgrds
Raj

Vendor Return process in case of Import Goods (Excisable)

Can anyone provide me the complete process details with configuration in case of Return of Import Goods to Vendor?
The scenario is we have received the goods from an overseas Vendor by availing the benefit of CVD and we have made payment to the Vendor. Now the goods need to be returned back to the Vendor overseas.
Thanks in advance

Import Vendor return is like re export from business point of view.
You can follow export sales process in sap.
What i suggest is for example if it is raw material you can create a bom with parent material as X-01,child material as Y what
you are returning to vendor.
Note: Create parent material as HALB with sales view & accounting view with valuation of raw material.
Do production goods receipt,it willl bring stock to parent material.
Create customer for vendor.
Adopt export sales process,create a sales order,delivery,billing,invoice,excise invoice,ARE1.
Note : Discuss with FI consultant/core team take care of accounting effects in billing.
Clear balances for customer or vendor using F-53 or F-58.
Note : You need to tell excise/submit documents telling it is not actual export.
or
If you opt for purchasing route,then there is lot of customs formalities to be completed & also need to pay duties taken credit,depends on value of goods if it is high, you can opt for import vendor returns or ask vendor for debit memo which will be adjusted with future purchases against same vendor
I also asked same question in forum, refer link for solution [ Import material - Vendor returned(Indian scenario) |Import material - Vendor returned(Indian scenario);

Vendor consigment process

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