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Product Information
Author's profile photo Quesnot Mickaël





Use case:

• KPC places a purchase order of 10 000 units to an EMS of finished products.
• KPC receives the 10000 units on April 1st in VERNON (owned by EMS). The stock position in VERNON is 5 000 units owned by KPC.
• The 10 000 units remains EMS property for the following 45 days. Show the stock positions for the 15 000 units.
• By April 30th 7 000 units have been sold. Show stock transfers from EMS owned inventory to KPC inventory.
• After 45 days the remaining 8 000 units are transferred to KPC inventory and invoice is paid by KPC.

Vendor Consignment is a process wherein the supplier provides materials and stocks them in the purchaser’s premises. The material remains in the books of the supplier (vendor) until the same is withdrawn from the stock of the consignment and use. The inventory gets transferred to the books of the purchaser only when the same is removed from the consignment stock. The supplier (vendor) would not invoice the purchaser initially when they come into the premises of the purchaser. The purchaser is liable to pay the supplier (Vendor) only when the stock is withdrawn (consumed).


BP (Vendor)



Special Procurement type Consignment has to be given in Material Master (Optional)

Create Consignment Info Record –Mandatory


Maintain OBYC settings for Transaction Key KON –Consignment Accounts Payable


Maintain Output Condition Records for Output type KONS with Transaction Code MRM1 (OPD)


Process Steps:
Create Purchase Order with Item Category K– Consignment- T Code ME21N / Manage Purchase Orders tile


Goods Receipt against Consignment Purchase Order,VMvt Type 101 K – No accounting Entries – T Code MIGO-Goods Receipt /
Post Goods Receipt for Purchasing Document tile

Stock – Multiple Materials

Transfer the Consignment Stock to Own stock- Transfer Posting –411 K –T Code MIGO-Transfer Posting / Transfer Stock – In-Plant TILE

Accounting Entries:

Here Debit means +Ve and Credit means -Ve.
Consignment Payable – KON – Credit
Stock – BSX – Debit

Invoice Settlement – MRKO / Create Consignment and Pipeline Settlement TILE

Accounting Entries:

Consignment Payable(KON) – Debit
Vendor Account – Credit


Payment F110 or any other payment transaction / Manage Automatic Payments TILE

You can use this app to schedule payment proposals or schedule payments directly and get an overview of the proposal or payment status. The app identifies the overdue invoices and checks whether all the required payment information is complete.


Accounting Entries:
Bank Account – Credit
Vendor Account – Debit


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