Vendor consignment VS non value material

hi,
what is vendor consignment?
if customer provide part of material for finish product, should i use non value material or vendor consignment? pls advice
thanks

vendor consignment stock is OWNED by your vendor until you use it. Then you transfer vendor consignment stock to own stock, which is usually valuated with the price from the consigment info record.  This creates a liability to your vendor.
If your customer provides you material, because you are his subcontractor, then you should create a material of type UNBW non-valuated.

Similar Messages

  • Consignment for Non-valuated Material

    Good day!
    Here's our scenario: we want to monitor the material, the quantity that is partially received based on a single PO,  but the material is non-valuated. We have created a separate vendor account group and a PO document type for this case. We put the material under consignment. But when we start creating the PO, an error message is displayed: "With item cat. K, inventory mgmt. of material must be value-based". On what part of the material master can I adjust this "value-based" error?
    Thank you.

    Hi,
    Generally consignment material is used as a stock material. In Vendor consignment we order the material from the Vendor, and we enter the GR which is non valuated.We dont need to pay to Vendor. Liability only arises when we withdraw the material and it is done via T-code MRKO
    So if your vendor consignment is a non valuated material, then check the materila master record for its material type which must be UNBW- Non valuated material. In which material is managed only on quanity basis and not on value basis.
    I hope this is useful
    Regards,
    Tushar Patankar

  • Vendor consignment pick up value when doing stock count

    Hi experts!
    I'm seeking your kindness to help me solve a problem.My client has done a stock count of vendor consignment stock.But why the system pick up the value of the stock when they do adjustment to the system which this item should not have any value as it was under vendor consignment?
    When i go to MI20 to check display the list of inventory differences,there's 1200kg with total price rm5146. the qty suppose to be no value but why there's 1200kg in booking?
    Any idea? your help is much much appreciated..

    Hi Pardeep,
    I still can't solve this problem.. Please help me.
    My client did stock count for vendor consignment stock. The problem is the system pick up value when she  did that. It suppose to be no value since it's not their stocks. but then i notice that there's a posting via mvt type 702 at the same day. i suspect she did not freez the invetory book during stock count. So now she doesn't want the value to be picked up. What can i do to solve this? Should i advise her to do reverse mvt type - 701? Please help me ASAP..

  • Sales order MTO for non-valuated Material type

    Hi Friends,
    I need to create MTO sales order for non-valued material type, and at the time of save, I am getting an error that, Material "JOBFINISH" cannot be costed
    Message no. CK113.
    Diagnosis
    In accordance with material type UNBW for material JOBFINISH, the material is not relevant for costing.
    System Response
    Material JOBFINISH is not costed.
    Procedure
    1. Check the master data for material JOBFINISH.
    Display material master record
    2. If you have authorization for Customizing, check whether the material type is correctly set for this material. A material can only be costed if the Costing indicator in the material type is set.
    Can you please suggest to handel this kind of error.
    Rgds, Krishan Raheja.

    First in MM03 ,check the Material Type & Costing View whether any cost is there.If it is not there ,then ask FI consultant to provide the Costing.
    Then Go to OMS2 > Select Details against your Material Type > Can activate the Costing View ( if it is not there in MM03).
    Best Regards,
    Ankur

  • 4.what accounts are generated for Non-Valuated material & for Consignment m

    4.what accounts are generated for Non-Valuated material & for Consignment material?
    please explain me.

    Dear Srinivas,
    Please find below the explanation about both materials in a simple manner.
      "Non valuated material".(UNBW):
    For this material type in the basic settings only Qty. update is active & no value update.
    No accounting data is maintained in Material master hence stock values are not updated.This material is procured only with account assignment.
    Consumption statistic is updated only after Goods Issue.Whenever material will come its value will be always go to consumption account.
    Consignment Material :
    In this case material is still owned by vendor & only kept in your premises. Liability only starts when you withdraw material from consignment stock or post it to your own valuated stock.Liabilities are generally settled monthly.
    At GR wrt PO material is directly put to consignment stock of vendor.It is possible to post another GR into consignment stock.No valuation takes place during GR.
    Once the material is withdrawn from consignment stock( For prod) it is valuated with the price of vendor in as per INFO record.
    If useful reward points,
    Vivek

  • Order value in a vendor consignment

    Hello all,
    I need your help about the order value in a vendor consignment !
    How is it possible to show the current order value in each consignment order ?  I do know the transaction MB54, in which I can choose the  material and the plant, but that is not enough.
    Is it possible to show the item value directly in each Consignment order? I know that the item category k does not allow any assignment. At this time the value of an item in my order is not shown.
    I would like to have an overview of the accounts payable which I have to pay at the end of the period.
    Many thanks in advance.
    Mellyy

    Hello,
    Please execute the transaction MRKO with display option (in selection screen)  to know the payable at the end of a period. Since you are not liable to pay for Vendor consignment PO's after the receipt, SAP will not show the price in the PO. If you still want to know the consignment PO price, you may create a custom report or a query.
    Thanks,
    Venu

  • Vendor Consignment - Returned material from customer directly to consignmen

    Hi,
    I'm working with a consignment vendor process. I'd like to know how should I manage the return from my costumer. I'd like to move this returned material directly to my vendor consignment.
    Is it possible? How can I do it? How affects it to the consignment settlement?
    Points will be given
    Thanks in advance

    Hi Roger,
    We have 2 type of consignment process in SAP.
    1. Vendor consignment (MM process) & 2. Consignment with customer.(SD process)
    If the Customer is returning the item (or consignment item). ... it will be process as normal process...like goods receipt in to inspection ... if it is ok... then again we can move to Consignment ( with customer)...in seperate transaction.
    Hope this is clear.
    REgards
    Anand

  • Creating Material Reservations for vendor consignment stocks

    Hi,
    Are we able to create reservations (Tcode : MB21) for vendor consigned-stocks? I tried but there is no option to key in the special stock type in the material reservation.
    Anyone can help?
    rgds,
    wl

    HI,
    vendor consignment is special stock . but in reservation your are reserving the material from your unrestricted stock to some particular operation so you will not get any special procurement type in MB21.
    regards
    suleman.

  • Reversal of vendor consigned material stock

    Hi,
    we have one vendor consigned material. In the initial uploading of stocks by 561 k an excessive stock was uploded. now we want to reduce the stock without paying to the vendor. We cannot use 562 k as it is locked now, please help.
    Thanks.
    S J

    Hi,
    This is really very difficult sitution. i can propose you my 2 suggestions to rectify this issue:
    1) First try to know the reason why 562 k is blocked..If possible try to open this MVT type.
    2) Else what you do, book the excess Quantity to scrap..Issue it with mvt 551.
    Hope this helps
    Utsav

  • STO non valuated material

    Dear Experts,
    We are doing asset transfer as a non valuated material , We have created non valuated material with assasable value and trasfering from one plant to another plant with sto route . create sto in receiving plant , create outbound delivery , post goods issue , excise invoice , but when i'm receving material at the time of GR i'm entering excise invoice number excise dutys comming fine .But system is geving error vendor excise details not maintained.
    This is only happening for non valuated material other materials its working fine.

    Thanks to all ,
    It is possible to get excise duty's for non valuated material  at the time of GR only with assassable value.
    I got it any way thanks to all
    Edited by: chandu on Dec 30, 2010 5:12 AM
    Edited by: chandu on Dec 30, 2010 5:13 AM

  • Control of vendor consignment stock

    Hello
    We have agreements with some of our suppliers about vendor consignment stock. Problem is that from a financial point of view, we don't fell we are having enough control about the values of the consignment stock.
    When the supplier deliver the goods physically on our location, we agree about the prices. Deliveries to other prices can be mixed with each other - in other words; we do not empty the consignment stock before getting new materials from the vendor. When ordering materials for consignment stock it is done via a purchase order, item category K and price 0.
    When using the consignment stock material we do it via MVT 411, which creates a posting - value of this posting is the price from an info record. Monthly the consumed materials are settled via MRKO.
    Problem is that we would like to know the price of the consignment stock - before it is used in production, even though it is not our goods, but we have committed to pay a specific price.
    Best regards
    Søren Kirch

    Hi
    Please note that in ECC 6.0 way back in 2006 SAP had introduced new functionalities for Consignment material for Retail (internal distribution) and for wholesale customer sale (SD sale).
    To over come this problem of stock determination for DC to store distribution (Plant to Plant) we need to do customization for stock determination and prioritization of stock (which type of stock should be considered when a particular movement type is called).
    The same stock determination group once configured and assigned to movement type should also be maintained in Article master Store or DC view. Article consignment indicator in the Article Store or DC view should also be marked as "1".
    Depending on the Source of supply 2 or A the transactions pick up stock types as mentioned in the Stock determination group (As prioritized).
    When you create an STO (Stock transfer order) the item category for Consignment is not populated any where but when you do Goods issue in outbound delivery the 411 K indicator will be picked up in the background.
    This will allow movement of Vendor consignment stock from one plant to another.
    I hope i answered your question.
    Devesh

  • Vendor consignment India Localization scenario

    Hi Guys,
    I am working on Vendor consignment India Localization scenario. We are using TAXINJ procedure and for good receipt we use MB01.
    I follow the below process.
    1.Created Consignment Info Record with appropriate tax code and Base Price.
    2.PO with item category K.
    3.Good Receipt for PO (MB01) movement type 101. Entry to RG 23A Part1 reg.
    4.Transfer posting consignment stock to own stock ,Movement type 411K.
    When I am trying to Post the excise Invoice ,T/C J1iEX ,it is throwing me an error u201CPlease check excise base for the item is zero !u201DIt seems because of Purchase order price as in consignment PO the price is u201C0u201D.
    I have tried below mentioned processes for trial basis but it gives the same error message.
    1. First capture part1,Good receipt(MB01).
    2. Put an accessible value in J1ID for the material and then tried the scenario.
    3. Capture wrt Material doc(tried for both 101 and 411 doc) using j1I5.
    4. Tried to capture the excise Invoice using with selection without reference to Purchase order. I entered the Material, Chapter ID,Plant,Quantities,UoM,Duty rates,Exc group, vendor ,Ex Inv no,Doc date but here it doesnu2019t calculate the duty values., I am getting the information message.1) Available Credit quantity 100.000 is different from the defaulted 0.0 .2). BED, AED and SED for the excise item is zero.
    I posted this question to MM forum also but no one replied.can you help me here?
    Thanks in Advance,
    Sarvesh Kumar Vashist

    hi
    you have to capture the excise invoice against the Purchase order and then you have to post the entry.

  • 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

  • Production order with components consumed from vendor consignment stock

    Hi expert,
    I have a production order with components and some of the components should be consumed from vendor consignment stock.
    When the order is created/released : is there  a possibility to have those components created with "special stock indicator" = 3 (consignement stock) by default?
    Thanks,
    P.

    Dear Pete,
    In my understanding it's not possible to populate this value as 3 - consignment stock in the component overview.This has to be
    done manually.
    Check in this way,by indicating a value in any of the material master field(for eg ABC indicator in MRP1 view) and if there's some
    value,then while saving the system populates for all those materials with this value as 3 by using some user exit or BADI.
    I'm not sure,it's only an idea,check and revert
    Regards
    Mangalraj.S

  • Maping consignment process for Excisable material

    Dear Experts,
    How excise part is configured in vendor consignment process ,please suggest me.
    Thanks in advance.
    Regards,
    Varun
    Edited by: madhu varun tirupati on Oct 19, 2010 12:00 PM

    Atually it is difficult to capture Excise in Consignment process,
    As accounting is not done when u do the goods recived, Accounting is done at the time of Issues of the material.
    Settelment is done in background.
    And SAP have not maped the Excise value in MRKO that is in settelment.
    But if u want to do it with consignment then with some constrants u can do Excise
    first its very important to know at what point Vendor is giving Excise Invoice.
    In infor record u will have to have Excise tax code
    If i have recived say 100 qty of consignment stock and excise invoice for 100 qty
    while doing GR u can capture and post excise invoice , or u can do it seperately with JIIEX
    and at the time of settelment due to tax code in Inforecord cenvate account is cleared in IR.
    But very IMP is the ststem will not take Excise value for MIGO or J1IEX, System will calculate excise on the Inforecord Price only .
    or other way round only possibe is
    do the consignement as a normal process (Infor record with only tax code with  Sales tax)
    do MIGO
    do J1IEX with out PO EWPO with sub transation type CS  Give Cenvat clearing account as consig exc clearing account)
    do the settelment
    and then do the FB60 for Excise value with gl account as consig exc clearing account and tax code as Sale tax
    this are just a work around
    there is no standrad Consignment proces with excise.
    hope this helps some what

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