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Special procurement - Consignment procurement (SAP MM)

19/05/2020 0 0

Consignement procurement.

In consignment procurement, we place the consignment PO with Vendor. The vendor will deliver the material, but the liability occurs towards the vendor when we consume the material. Till that time we don't have to pay to the vendor. 

In this below example we have ordered 100 and vendor delivered 100 qty. But we don't have to pay to vendor. But we have withdrawn ten qty from consignment stock to own. So we have to pay only for 100 qty. 


Step 1- Create Consignemnet Purchase info record - ME11

For consignment procurement consignment purchase info record is important because the price will always derive from Purchase info record and not from the PO. During the settlement, the price and tax indicators will be picked from Purchase info record. 

Step 2 - Crete Consignment PO - ME21N. 

During the consignment creation item category K is a must. Item category defines the types of order or procurement. During PO creation, we can't maintain the price because the price will always come from PI and in purchase order price field will be greyed out. Other than this all the other information has to be maintained as normal procurement. 


Org data



Plant and sloc.

Step 3 - GR for consignement PO - MIGO

Once we receive the consignment PO material, we will perform the Goods receipt activity in SAP using MIGO transaction code. While doing the GR, the movement type will be 101, and the special stock indicator will be "K". Once we have done the GR in the system, the vendor consignment stock will be updated in MMBE. At this point, we don't have to pay to the vendor. 

Step 4 - Withdrawing stock from consignment to own - MB1B.

In MB1B, we can work withdraw the material using 411 movement type and indicator K. Whenever we are withdrawing the material from consignment to own; we are liable to pay to vendor.

Step 5 - Settling the consignment - MRKO.

We have to settle to the vendor how much ever qty we consumed, and we are not going to all the material which we have received from the vendor.

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