Two Different payment Term for one vendor in External Procurement

Business Case:

We have  a business requirement to have two payment term in external Procurement where same vendor is supplying regular materials as well as consignment Material.

Liability is raised as soon as Material is received by receiving site in case of regular procurement of Material but liability in case of consignment procurement is only booked when Material is consumed. So payment duration to vendor in both case will be different, demanding two different payment term for same vendor.

Payment term in Purchase Order is defaulted from vendor Master purchasing view where We can have only one payment term in vendor master purchasing view.

Business requirement is different payment term should default during payment without any development.

Proposed Solution:

As we know that consignment liability is booked via MRKO transaction where system does not refer to consignment PO but consumption Material Document and liability for normal procurement is booked via MIRO transaction where PO is generally referred as reference document. So Payment term in MIRO will flow from PO and Payment term in PO will come from vendor master Purchasing view so we will maintain payment term applicable to normal procurement in vendor master Purchasing view. But Payment term applicable to consignment procurement will not fetch from vendor master Purchasing view as system does not refer PO during MRKO and accounting document is created during settlement so payment term will be taken from accounting view of vendor master  so consignment related payment term will be maintained there.

Process Involved:

I will demonstrate one consignment procurement process as well as one normal procurement process followed by booking of liabilities via MRKO and MIRO
transaction where payment term will play its role.

Pre-requisite: There should be all master data in well placed before we create external procurement document-Contract/Purchase Order. There are following master data needs to be maintained.

1. Material Master: All required views are to be maintained in Material master.
2. Vendor master: We need to maintain purchasing as well as Finance view. Payment term applicable to consignment
   procurement needs to be maintained under FI view and payment term applicable to all normal procurements will be maintained under purchasing view.
3. Purchase Info Record: We need to maintain standard as well as consignment PIR
4. Source List: We need to maintain condition record for source list if provision for source list has been maintained in configuration and material master

              We have maintained payment term N0 for consignment and N60 for Normal PO in vendor master in accounting and purchasing view respectively

Now we will create 2 PO- one for consignment and one for normal Procurement. We will see that Payment term in PO always
comes from vendor master purchasing view. Post PO, we will consume the material
for consignment process followed by MRKO and will run MIRO for normal PO. System should fetch payment term as N60 in MIRO and N0 in MRKO.

Creation of Consignment PO:

Settlement of consignment PO via MRKO:

Now run MRKO to book liability based on consumption for consignment procurement

So we can see that settlement has not been done. Now we shall run MRKO again and select settlement option to settle consignment liabilities.

So we can see that Payment term N0 has defaulted in accounting document which was expected.

Now we shall see process for Normal procurement.

Creation of PO:

Payment term N60 has defaulted from vendor master purchasing view in Purchase order. Now we shall book liabilities on company for material received from vendor. System should fetch payment term as N60 which has appeared in purchase order which is different from consignment payment Term.

So we can see that N60 payment term is appearing in MIRO document as well as accounting document which was requirement of business.