SAP MM Consignment Stock

1.1 1. 1

Cons Co nsig ignm nmen entt Sto Stock ck

1.1.1 1. 1.1 Co Cons nsign ignmen mentt Re Recei ceipt pt Consign Con signment ment stocks can be rec receive eived d with reference reference to a purc purchase hase order. order. The consignment prices for the vendor must be maintained in the purchase info record. The price maintained here is require required d for PO. When consignment stock is receive received, d, it is not vauated as it is not the compan!"s stock. #t remains ph!sica! in the store, but is the propert! of the vendor. Therefore on receipt there is no impication on books of account. 1.1.$ 1. 1.$ #ss #ssue ue of of Cons Consign ignmen mentt stock stock Consignment %aes&#ssue refers to saes of artices from the vendor"s consignment stock. %ince the artices are ocated in the premises of the compan! the! wi be managed b! the compan!, wi not be vauated in the compan!"s book of accounts. #n case of vendor"s consignment the vendor"s account wi be debited on! after the artices are sod. Consignment saes wi aso be carried out at the PO% s!stem for  end'consumers. When artices are sod from the consignment stock at the PO%, it posts a negative quantit! in the unrestricted'use stock of the artice. The saes revenue is booked. The dai! saes entr!, based on actua seing price, sha be passed together for  entire saes for that store.

1.1.( 1.1. ( Tr Trans ansferr ferring ing consig consignmen nmentt stock stock to own own stock stock The consignment stock is then transferred to unrestricted use stock to the e)tent of  the negative quantit! posted unrestricted'use stock. *ccounting entr!+ Cost of oods %od a&c -r  To iabiit! from consignment stock 1.1./ %ett 1.1./ %etting ing Con Consign signment ment iab iabiit iities ies The settement can be handed in two wa!s0 Consignment to own Removing materia from consignment stores or transferring materia to compan!"s own

stock resuts in iabiities towards the vendor. Retaier sette these iabiities at reguar  intervas. Consignment materias invoices are verified without the vendor issuing an invoice, as the vendor compan! is unabe to track withdrawas direct!. The vendor can on! manage its consignment stock b! taking deiveries and pa!ments into account. Retaier can initiate pa!ment for consignment withdrawas using the ogistics #nvoice erification appication component. 1.1.2 *fter %aes 3ased on %aes documents, s!stem wi create iabiit! automatica! in the s!stem. The vendor pa!s on! a commission for the saes made at the PO% for the consignment artices. Remova of artices from consignment stores and transferring it to compan!"s stock, resuts in a iabiities towards the vendor. The settement ma! be performed periodica! in the background. The foowing documents can be invoved+ #nvoices, credit memos. The purchase price has to be checked with the saes price for the artice, and ensure negotiated margins are not breached.  *ccounting entr!+ •

iabiit! from consignment

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To vendor a&c