Consignment
MM Supplier Consignment Part 2: Reconciliation, Settlement and Troubleshooting
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).
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.
MM Supplier Consignment Part 1: Stock Ownership, Withdrawal and Settlement
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.
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.
Interview questions covered
- 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?
- 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?
- 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?
- A plant uses automatic purchase order creation via a source list for a consignment material, and after goods receipt, finance reports that the withdrawal posting is hitting an unexpected transaction key instead of the expected consignment liability account. Walk through how you would diagnose this.
- A manufacturing client stores subcontractor-provided components as vendor consignment stock alongside their own consignment stock at customer sites. During a global rollout, they ask you to design physical inventory and valuation handling for both special stock types. What key configuration and process differences would you address?
- A plant receives supplier-owned goods but books them into own stock with standard POs. How would you implement supplier consignment?
- Consignment settlements don't match supplier statements and some withdrawals are never settled. How do you troubleshoot and control consignment?