The vendor provides goods that are stored in consignment stores. The vendor remains owner of the material until you withdraw materials from the consignment stores.

The vendor is informed of material withdrawals on a regular basis.

The quantity withdrawn is invoiced at certain time intervals.

As of Release 4.0, the consignment price for procuring a consignment material from a vendor is stored in a consignment info record.

In Release 4.0 consignment info records are being supported parallel to the old consignment price segments. When you maintain the old consignment price segments, the system will point out the new function in the purchasing menu. In the course of 4.0, the consignment price segments will have to be converted to info records. You can convert them during 4.0 at any time in Customizing.

Using consignmnet info records, you can manage consignment prices in foreign currencies. For consignmnent twithdrawals the purchase order currency of the vendor is decisive.

Consignment prices can be defined periodically.

You can specify the consignment price in the unit of measure you choose. The conversion factor is defined in the info record.

You can also use conditions in Purchasing, as well as the definition of discounts and price quantity scales.

A vendor's consignment price for a material is valid plant-wide.

Consignment stocks of a material from one vendor are managed per storage location.

Your own stocks and consignment stocks of the same material in the same storage location are managed separately, under one material number.

You can take a physical inventory of a vendor's consignment material.

A consignment item is a request to the vendor to deliver material to the consignment stores.

A separate item category is assigned to a consignment item in purchasing.

For consignment items, you must select a material for consignment that has a material type which includes inventory management.

You cannot specify a purchase price or conditions for consignment items.

When posting an invoice receipt for consignment material, no reference is made to the purchase item.

Using a special procurement key (MRP data on a material), you can select a material in a plant for consignment procurement.

You can specify consignment processing as a special procurement type for a quota arrangement item.

Goods receipts into your consignment stock can be entered with or without reference to a purchase order.

The vendor's consignment price for a material must be determined before the goods receipt is posted.

A goods receipt to consignment stock does not change the valuated stock quantity, since the material still belongs to the vendor.

Consignment stocks can be managed with the stock types "unrestricted-use stock", "quality inspection stock", and "blocked stock".

Transfer postings are not relevant for valuation.

Goods issues can only be posted from unrestricted-use stock.

When transferring goods from the consignment stock into your own stock, you can specify a receiving storage location. This also results in a stock transfer.

An issue of goods from consignment stocks results in a liability to the consignment vendor.

You can now settle consignment liabilities on a batch basis.

When processing online, you can define on the initial screen whether the withdrawals are to be settled or whether the withdrawals to be settled are just to be listed.

You can inform the vendor periodically about issues from its consignment stocks. The list is restricted to goods issues that have not yet been settled.

You enter the invoice for consignment liabilities without reference to a purchase order. Debits are posted to the Liabilities from consignment stores G/L account, to which the credits were posted upon goods issues from the consignment store.

SAP AGTAMM10 4.0B26-12