Consignment (SAP Library - Managing Special Stocks (MM-IM))

Consignment

Use

In consignment processing, the vendor provides materials and stores them on your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, you can also arrange with the vendor that you take over ownership of the remaining consignment material after a certain period of time.

Features

The consignment stock is managed under the same number as your own stock. Consignment stock can, therefore, be transferred to the available stock.

You can define consignment prices in foreign currency. The currency in which the order is placed with the vendor applies for consignment withdrawals.

You can determine period-specific consignment prices.

You can specify the consignment price in any unit of measure. The conversion factor is stored in the info record. (For information on consignment info records, refer to Pricing for Consignment Stocks.)

Using consignment info records, you can make use of other condition functions used in Purchasing, such as discounts and price quantity scales.

Consignment stocks of the same material from different vendors can be managed independently from one another and at the price of the individual vendors.

Consignment stocks are not valuated. When the material is withdrawn it is valuated at the price of the respective vendor.

A consignment material can be allocated to one of three stock types:

Unrestricted-use stock
Quality inspection stock
Blocked stock

You can make transfer postings between these three stock types. Withdrawals can only be posted from unrestricted stock, however.

Archiving Consignment Stock Data

For information about archiving consignment stock data, see Archiving Special Stock Records (LO-MD-MM).