Introduction
Consignment means that a supplier provides you with material stored on your premises but still the supplier's property. A liability to the supplier does not arise until you withdraw material from consignment stock. The quantity consumed or withdrawn is settled with the supplier according to the agreed periods.
The following diagram shows the key process flow of supplier consignment.
You can find the complete Solution Process Flow on Process Navigator - SAP for Me:
Supplier Consignment (2LG) Solution ProcessApplicable Process Steps
The following is a list of applicable process steps:
| Process Step | Description |
|---|---|
| Create consignment purchase requisition (optional) | In this optional step, you create a consignment purchase requisition either manually or automatically via Material Requirements Planning (MRP). A purchase requisition for consignment is identified by item category Consignment (K). |
| Create consignment purchase order | In this step, you manually create a consignment purchase order in case you have no purchase requisition. To specify in a purchase order that a material is to be ordered for consignment stock, enter the item category Consignment (K). This item category has the following effect:
Note If you work with purchase requisitions, you can convert them into purchase orders. |
| Approve purchase order (optional) | In this step, you approve the purchase order if an approval process is defined; otherwise, it is automatically approved. |
| Post goods receipt to consignment stock with reference to a purchase order | In this step, you post a goods receipt to the consignment stock of the supplier. This goods receipt is not valuated. |
| Display stock overview | In this step, you can monitor your consignment stock. Material you procure from a supplier using consignment is managed in a supplier-specific special stock. This stock is updated at the storage location level because the material is physically located in your own company. However, consignment stock is not valuated. The system displays both the total of all consignment stocks at the storage location level and an exact overview of how the consignment stock is distributed among the individual consignment suppliers. The consignment stock is managed under the same material number as your own stock. Consignment stock and own stock can be managed in the same storage location; it is not necessary to create a specific storage location for consignment stock. The consignment stock is taken into account when determining the available stock. |
| Transfer consignment stock to own stock | Consignment material can be allocated to one of three stock types: unrestricted-use stock, quality inspection stock, and blocked stock. You can make transfer postings between these three stock types. However, transferring consignment stock to own stock can only be posted from unrestricted stock. A liability to the consignment supplier arises when you transfer the goods to your own stock. |
| Post goods issue from consignment stock | Goods issues withdrawals from consignment stock can only be posted from unrestricted stock. A goods issue from consignment stock results in a payable to the consignment supplier. |
| Settle consignment withdrawals | In this step, you analyze your withdrawals from your consignment stock since the last settlement. Based on this, the system generates a settlement document (invoice) |
Note
Before you can order consignment material or post a goods receipt to consignment stock, you must maintain the price of the material with the relevant supplier in a consignment purchasing info record. The price is required for the valuation and settlement of withdrawals. Consignment stocks of the same material from different suppliers can be managed independently from one another and at the price of the individual suppliers.Note
If a material is always procured for the consignment stock of a plant, you can maintain a special procurement key in the material master record. This special procurement key causes a consignment purchase requisition to be generated by the planning run if a requirement exists for this material.