MM / P2Pintermediate

MM Supplier Consignment Part 2: Reconciliation, Settlement and Troubleshooting

Key takeaway

Keep consignment accurate: settlement frequency and documents, price changes and their effect on settlement, reconciliation of K stock with supplier, physical inventory of consignment stock, pipeline vs consignment, and common errors (missing price, wrong movement, blocked settlement).

Explanation

📌 KEY POINTS
✅ Withdrawals are valued at the consignment price valid at withdrawal time.
✅ MRKO settlement frequency (weekly/monthly) should match the supplier agreement.
✅ Reconcile K stock and settled withdrawals with supplier statements; count K stock periodically.
✅ Pipeline materials (e.g. utilities) follow a similar settlement without stock.
⚠️ Settlement value higher than expected is usually an outdated or wrong consignment price.

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▶ WHERE WE ARE
Part 1 covered the process. Now control and troubleshooting.

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▶ 1. SETTLEMENT

MRKO periodic runs; output to supplier; payment.

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▶ 2. PRICES

Consignment info record validity; price at withdrawal applies.

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▶ 3. RECONCILIATION

Supplier statements vs K stock and settlements.

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▶ 4. PHYSICAL INVENTORY

PI documents for special stock K.

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▶ 5. TROUBLESHOOTING

Missing price, wrong movement type, settlement blocked, unsettled withdrawals.

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▶ STEP BY STEP

Change consignment price; withdraw; check value.
Run MRKO; compare with supplier statement.
Count K stock.

✅ CHECKPOINT: supplier statement, K stock and settlements agree each period.

Code example

ABAP Code

===== STEP 1: settlement =====MRKO weekly: supplier 300700 → settlement document (per config) → output ===== STEP 2: checks =====Unsettled withdrawals (MRKO list) | consignment price validity (ME13) | K stock in MMBE | PI for special stock K ===== STEP 3: troubleshooting =====No price → maintain consignment info record | wrong movement (201 vs 201K) → reverse/repost | settlement differences → price history

Real project scenario

Consignment settlement value was higher than the negotiated price: the new price had been maintained with a future validity, so withdrawals still used the old one. Correcting validity dates and adding a price review to contract changes fixed settlements; affected settlements were corrected with the supplier.

Common mistakes

Wrong price validity.
Irregular settlements.
No reconciliation.
No counts of K stock.
Posting non-K movements.

Best practices

Keep prices current.
Settle on a fixed cycle.
Reconcile with statements.
Count K stock.
Monitor unsettled withdrawals.

Interview angle

Questions: "How is a consignment withdrawal valued?", "How do you reconcile consignment?", "Why are settlements wrong?"
Strong answer: price at withdrawal, MRKO cycles, reconciliation and counts, troubleshooting causes.

Practice this lesson

Quick check

1. Which transaction is used in SAP MM to periodically settle vendor consignment and pipeline liabilities by evaluating consumed quantities since the last settlement run?

2. Consignment settlement values are higher than the newly negotiated price. What is the likely cause?

3. After a consignment settlement run (MRKO) is completed, what type of document does the system automatically generate to record the vendor's liability?

Interview questions

1. Consignment settlements don't match supplier statements and some withdrawals are never settled. How do you troubleshoot and control consignment?

Answer it in your own words first, then compare.

2. A vendor supplying consignment materials also provides external services for equipment maintenance under the same vendor number. How would you design output management to ensure consignment settlement and service payment outputs are processed through distinct channels without confusing the vendor?