ERPTwin
101411MMME21NMIGOadvanced

Supplier Consignment: Receipt, Withdrawal (411 K) and Settlement

The supplier's goods sit in your warehouse without being on your books. A liability arises only when you withdraw them, and is settled periodically.

Educational content. SAP behaviour varies by configuration and release. Spotted something off? Report it.

Digital twin

Docs
SAP DOCUMENTSVisualization of Supplier Consignment: Receipt, Withdrawal (411 K) and Settlement. All information shown in the scene is also available in the caption and the panels next to it.
Demo data

01Consignment PO

A PO with item category K asks the supplier to deliver 200 EA into consignment.

Business scenario

Demo Supplier Ltd. keeps 200 EA of RM-1000 as consignment stock in plant 1000. Production withdraws 50 EA; at month end the withdrawals are settled with the supplier.

All companies, numbers and documents are fictional demo data.

Step-by-step flow

  1. 01

    Consignment PO open in twin

    A PO with item category K asks the supplier to deliver 200 EA into consignment.

    Price is taken from the consignment info record when goods are withdrawn.

  2. 02

    Supplier delivers open in twin

    The truck delivers 200 EA to plant 1000.

    The goods arrive physically, but ownership stays with the supplier.

  3. 03

    Goods receipt into consignment stock open in twin

    Consignment stock (special stock K): 0 → 200 EA. Own stock unchanged at 600 EA.

    Consignment stock is managed in quantity only.

  4. 04

    No accounting document open in twin

    The ledger stays still — the stock is not yours yet.

    No ownership transfer, so no inventory value and no liability yet.

  5. 05

    Withdraw 50 EA to own stock (411 K) open in twin

    One posting: consignment 200 → 150 EA, own unrestricted 600 → 650 EA, and the material document and accounting document (Inventory / Consignment liabilities) are created together.

    The liability arises when consignment stock is withdrawn for your own use — here by transfer to own stock with 411 K, but equally by consuming it directly from consignment (e.g. 201 K to a cost center). Either way you now owe the supplier for the 50 EA.

  6. 06

    Periodic settlement (MRKO) open in twin

    MRKO settles the withdrawal: consignment liabilities are cleared and the supplier account is credited.

    Settlement creates the invoice document that leads to payment.

  7. 07

    Consignment cycle complete open in twin

    150 EA remain supplier-owned on your premises; 50 EA are yours and settled.

    Consignment improves availability without tying up working capital until use.

SAP documents

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Stock impact

StepPlant / SLocStock typeMvTChange
Goods receipt into consignment stock1000 / 0001Vendor consignment (K) · 100001101+200 EA
Withdraw 50 EA to own stock (411 K)1000 / 0001Vendor consignment (K) · 100001411−50 EA
Withdraw 50 EA to own stock (411 K)1000 / 0001Unrestricted use411+50 EA

Accounting impact

Withdrawal from supplier consignment stock to own stock

Typical

Withdraw 50 EA to own stock (411 K)

  • Dr Inventory (stock account) (BSX)₹50,000
  • Cr Consignment liabilities (KON)₹50,000

The consignment info-record price values the withdrawal. The liability is held on a consignment payables account until settlement.

Consignment settlement

Typical

Periodic settlement (MRKO)

  • Dr Consignment liabilities (KON)₹50,000
  • Cr Supplier (accounts payable)₹50,000

Turns the consignment liability into a payable to the supplier. Tax handling is configuration dependent and omitted here.

Typical conceptual flow. Actual G/L accounts and posting behaviour depend on material valuation, automatic account determination and system configuration.

Movement type

  • 101 KGR into consignment stockReversal: 102 K
  • 411 KTransfer consignment to own stockReversal: 412 K
  • 201 KConsumption from consignment to cost center

Keeps supplier-owned material on site and pays only for what is withdrawn.

Transactions & Fiori apps

  • ME21N — Create PO (item category K)
  • MIGO — Goods Movement
  • MRKO — Consignment and Pipeline Settlement
  • MMBE — Stock Overview (shows special stock K)
  • Post Goods Movement
  • Stock – Single Material

Differences by SAP version

Same process; special stock data derived from MATDOC.

Configuration

  • Account determination KON

    Configuration dependent

    Consignment liability account.

  • Tax code for settlement

    Configuration dependent

    Settlement tax handling depends on setup.

Prerequisites

  • Consignment info record with price
  • Supplier master data

Master data

Consignment info record
Price at withdrawal.

Organizational structure

  • Plant 1000
  • SLoc 0001
  • Supplier 100001

Tables

TableDescription
MKOLSpecial stock from vendor (consignment)
MATDOC101 K, 411 K movements
RBKP / RSEGSettlement documents

Integration

  • FILiability at withdrawal; payable at settlement.

Common errors

  • “No price at withdrawal”

    Likely causes: Consignment info record missing or no valid condition

    Where to look: ME13 (info record)

  • “Nothing to settle in MRKO”

    Likely causes: No withdrawals in the selection; Wrong selection parameters

    Where to look: MRKO selection

Troubleshooting

Something went wrong? Work through these checks in order. They are diagnostic questions, not configuration instructions — confirm changes with your system owner.

  1. CHECK 1

    Pricing

    • Is there a consignment info record with a valid price?
  2. CHECK 2

    Settlement

    • Are withdrawals within the MRKO selection?

Interview questions

  • When does a consignment liability arise?

    At withdrawal (e.g. 411 K or 201 K), not at goods receipt. GR into consignment stock posts quantity only.

  • How is consignment settled?

    Periodically with MRKO, which converts consignment liabilities into a supplier payable.

Quiz

Q1 · Identify the accounting impact

What happens in FI when goods are received into supplier consignment stock?

References

  • SAP SE — SAP Help Portal: Supplier Consignment (source)
  • SAP SE — SAP Help Portal: Consignment and Pipeline Settlement (source)

Explanations are original. They summarize standard behaviour; always validate against your system's release and configuration.

Version history

VersionChange
1.2.0SME decision — one posting, one step: the 411 K transfer and its liability posting (Inventory / Consignment liabilities) now appear together in the withdrawal step.
1.1.0SME correction (step 6): the liability is recognised when consignment stock is withdrawn for own use or consumption, not only when 411 K transfers it to own stock.
1.0.0Initial version.