MM / P2Pbeginner

MM Supplier Consignment Part 1: Stock Ownership, Withdrawal and Settlement

Key takeaway

With supplier consignment, the supplier's goods sit in your warehouse but stay supplier-owned until you withdraw them. Learn consignment info records, consignment PO items (K), GR into special stock K without value, withdrawals that create the liability, transfer to own stock, and settlement with MRKO.

Explanation

📌 KEY POINTS
✅ Consignment stock (special stock K) belongs to the supplier until withdrawal.
✅ Consignment prices come from consignment info records; PO items (K) carry no price.
✅ GR to consignment stock has no value; withdrawals (e.g. 201K, 261K, 411K) create the liability to the supplier.
✅ MRKO settles withdrawals periodically (creating invoices/credit documents).
⚠️ Without a valid consignment info record price, withdrawals can't be valued or settled correctly.

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▶ WHAT THIS SERIES COVERS
Part 1: Stock ownership, withdrawal and settlement
Part 2: Reconciliation, settlement and troubleshooting

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▶ 1. MASTER DATA

Consignment info record (category consignment) with price per supplier/material/plant.

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▶ 2. PROCUREMENT

PO or scheduling agreement item category K; GR 101K into special stock K.

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▶ 3. WITHDRAWAL

201K cost center, 261K production, 411K transfer to own stock; posts liability (KON) and stock/consumption.

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▶ 4. SETTLEMENT

MRKO lists withdrawals and settles (invoice/credit document, output to supplier).

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▶ 5. VISIBILITY

MMBE special stock K; supplier statements.

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▶ STEP BY STEP

Create a consignment info record.
Post GR with item category K.
Withdraw via 411K and settle with MRKO.

✅ CHECKPOINT: liability appears only after withdrawal, and MRKO settles it.

Code example

ABAP Code

===== STEP 1: master data =====ME11 info record category consignment: supplier 300700, material C-100, plant 1000, price 8.00 ===== STEP 2: process =====PO item category K → MIGO 101 (special stock K, no value)Withdrawal: 411K to own stock / 201K cost center / 261K order → Dr stock or consumption, Cr liability (KON) ===== STEP 3: settlement =====MRKO: select supplier/period → settle → invoice document, output to supplier

Real project scenario

A plant received consignment goods into own stock with standard POs, inflating inventory and payables. Switching to K items with consignment info records and weekly MRKO settlement aligned ownership and liabilities.

Common mistakes

Standard items for consignment.
Missing consignment prices.
Withdrawing without settlement.
Ignoring supplier statements.
Using 201 instead of 201K.

Best practices

Use K items and consignment info records.
Settle regularly.
Reconcile with suppliers.
Train on special stock movements.
Monitor K stock aging.

Interview angle

Questions: "Explain supplier consignment", "When is the liability created?", "What does MRKO do?"
Strong answer: K stock ownership, consignment info record price, GR without value, withdrawals posting liability, MRKO settlement.

Practice this lesson

Quick check

1. When creating a purchase order for consignment stock, which item category must be entered on the PO item to trigger consignment-specific processing?

2. Which special stock indicator is used in SAP MM to identify stock that a vendor has placed at the ordering company's location but that remains the vendor's property until it is withdrawn or consumed?

3. Where is the vendor-specific consignment price and validity period typically maintained before consignment purchase orders are created?

Interview questions

1. A plant is adding a new storage location for a consignment warehouse operated by a third-party logistics provider. The business partner acting as the 3PL also needs to be set up with appropriate BP roles. What master data steps and considerations are required?

Answer it in your own words first, then compare.

2. A field service business wants technicians to consume vendor-owned consignment spare parts while performing billable external services at customer sites, with account assignment posting directly to the service order. How would you structure this in MM?