Re: [sap-log-mm] Free of charge Vendor Consignment stock

Posted by Sap Land Thursday, 21 July 2011 11:59

Posted by PMassey48
on Jul 21 at 2:57 PM

Vendor Consignment stock or Vendor Managed Inventory stock in SAP is
normally used for goods that you sell and the consignment stock is therefore
your stock and you are the vendor.

As the stock is not yours whilst in consignment it should not be an issue
for your finance people. Indeed, the purchase from the consignment stock
should be treated as a normal purchase. In this case the GRN would still be
used and a summary of the GRN's monthly used as the data against which the
vendor will raise an invoice (unless you are self billing, in which case you
raise the invoice). If you are supplying data on a monthly basis and the
price is set each month then raise a single PO per month for the quantity
consumed.

You can create a non-valued inwards consignment stock, but you have to pick
up a value upon transfer to your stock and consumption. Unless you want to
undertake some potentially dangerous revaluation procedures (dangerous in
that a lack of co-ordination can easily lead to errors) the best way to do
this revaluation is via a PO appropriately priced - this is where you use
MAP valuation, but if you use standard costs then there are other options
available.

I am sure that this issue is not uncommon and that others will have found
alternative solutions.

Paul Massey

email@removed
07921 850396

---------------Original Message---------------
From: VFRMark
Sent: Thursday, July 21, 2011 1:28 PM
Subject: Free of charge Vendor Consignment stock

Hi everyone,

My situation is that our business has agreed with the vendor a monthly fixed price for a material no matter how many we use. We supply stock data to vendor weekly and the vendor deliveries stocks as we need, Vendor owns the stocks until such time as we use them. Hence finance is proposing a generic Framework PO for the monthly bill (no GRN match is needed) and I am thinking of Vendor Consignment stock for the Free of Charge weekly receipts from the vendor using 501 K movements (it seems logical as we do not own the stock till its used and then its FOC).

But I cannot find a way to set up vendor consignment info record which allows free of charge deliveries and therefore does not generate any financial movements or postings or invoice liabilities (a 501k movement has a mandatory info record)

Any help is appreciated

Mark

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