My First Vendor Consignment Inter-Company STO
My First Vendor Consignment Inter-Company STO
In a retail industry SAP project that I am concerned about, there is a scenario in which the head office imports goods and transfers them to domestic sales companies, and then the stores of sales companies sell those goods to customers. This is a typical cross company purchase, or inter- company STO (stock transfer document). This is a common business scenario for SAP projects of many large group customers.
However, the special feature of this project is that the goods purchased by the sales company from the head office adopt the consignment mode, It means that this is an inter-company STO of supplier consignment mode.
This is a new scene for me, which aroused my curiosity. Driven by the desire for knowledge, I actualize the inter company STO function of vendor consignment model on an testing environment of SAP retail.
This blog describes the implementation of this process in SAP system.
Part I：process step demo
1, ME21N to create inter-company STO document 4500000756.
Item category is K, that indicate that it is vendor consignment STO.
2, Execute tcode VL10B to create outbound delivery for this STO.
Input the STO number, then click Execute, SAP go to below screen,
Select the item and click button Background, then we got below screen,
It means that the outbound delivery was created successfully. Click the STO document number, SAP goto below ME23N screen,
In Purchase Order History Tab, we see the outbound delivery document number.
VL03N to display this outbound delivery document,
See its Header data, the delivery type is NK（Replenishment Delivery Consignment）.See below screen shot:
3, Execute the tcode VL02N to do picking and goods issue.
Inut the batch number and picked quantity. And then click Post goods Issue button.
After posting, SAP generated a material document with 635 movement type,
4，Execute the transaction code MIGO to do goods receipt for this STO 4500000756.
Select A01 (Goods Receipt), R01(Purchase Order), input the STO document number, click Enter key,
SAP will receipt the goods using movement type 101, special indicator K.
After posting, SAP generated a goods receipt material document, see below screen：
Part II – Key Master Data Setting
1,the material master data needs to be extended the sales view.
2,It is necessary to maintain the goods issue store or DC as a vendor. The vendor needs to be extended in the purchasing organization of the receiving company.
3,It is necessary to maintain the receiving store as a customer, and extend the customer in the sales area of the goods issue company.
Part III – key backend configuration
1, In the STO setup configuration we need to assign a delivery type for consignment STO.
Set the value of Delivery type consignment field as NK.
2，Specify the STO document type for the issue plant.
In this configuration,NMI1 is the DC of headquarter company, NMI2 is a store of headquarter company. Stock transfer between NMI1 and NMI2 is a intra-company STO, we use document type UB.
NM01/NM02/NM03/NMDC are the stores/DC of sales company. So the stock transfer from NMI1 to NM01/02/03/NMDC is the inter-company STO (cross-company STO), we use document type NB.
The conclusion is that in SAP system, we can realize the vendor consignment mode inter-company STO scenario. This scenario often happened in retail industry.
Can you please let me know how will proceed with Invoicing part?
MRKO will work? I've checked but it's not working the invoicing part
Request to you please help me.
MRKO is not working and w.r.t PO system will not allow to create an MIRO document, how will proceed please let us know.
Thanks & regards,
Sr. Sap MM Consultant
It would be nice if you could complete the process with MRKO and show what is happening there
Yeah, it's done thank you.
Hi DICKSON JIN ,
This is a great blog...thanks for posting this. Actually we also have the same business scenario in our place, in which company A send material to company B, and this material is considered as consignment stock. Once company B sell the material, then company B pays to company A.
We have followed your example and it works where company A send material to company B, from company A perspective now it can see stock as customer consignment stock (special stock W), and from company B now it can see stock as vendor consignment stock (special stock K).
But then we found issue where company B sells the consigment stock, it only reduce vendor consignment stock (special stock K), while from company A perspective the customer consignment stock is not reduced at all. We think it should not be like this as we expect when sales from company B happen, customer consignment stock from company A should be reduced as well.
Very appreciate if you can shed some light to the point of sales happening, did we miss something?