Exploring the Consignment Process

You enter a scrap posting if it is not possible to use a material any longer, for example, because it has been damaged or because its minimum shelf life has been exceeded. Scrapping is possible from each of the three stock types and is entered as a GI without a reference.

The following movement types are defined for scrapping:

• 551: Withdrawal for scrapping from unrestricted-use stock
• 553: Withdrawal for scrapping from stock in quality inspection
• 555: Withdrawal for scrapping from blocked stock

Scrapping causes a reduction in the associated stock. The system moves the value of the scrapped material from the stock account to a scrap account.

• Consignment basics: Vendor-owned materials stored in your warehouse, liability arises only upon withdrawal from consignment stock.
• Master data requirements: Utilize material and supplier master records, consignment purchasing info record for effective stock management.
• Consignment process execution: Use item category K in purchase orders and manage materials with special procurement key for auto requisitions.
• Characteristics of item category K: Requires material number, no PO price, goods receipt is nonvaluated, cannot enter invoices for consignment items.