Provided E2E concept for students with basic to Mid level

Consignment is a process of material procurement from the vendor, but stock lies in plant premises, but owner of the product is vendor, even its same process of creating normal PO but item category is K.

Normally we use to purchase the stock from vendor, in this case we will purchase the stock, but we don’t know when we will use that stock for the production. So, for that we have SAP recommended procurement process-Consignment, where stock keep in the plant and there is premises for vendor -we can call as vendor consignment stock, whatever the stock present in plant the owner will be vendor and when we require any stock then we can move that stock from vendor consignment stock to production stock and we will post MRKO instead of MIRO, so that report will be generated for the transfer stock and vendor will get paid for that.

If we withdrawal any stock from vendor consignment stock like 5 PC, then MRKO will be done with 5 quantity and vendor will get paid for 5 PC.

The refilling process will be done by creating a PO with account assignment K for only filling the gap stock.