Special Stock & Special Procurement in SAP

Details: Last Updated: 18 October 2020

In some cases, logistic processes require special procurement types to be used:

Consignment
Subcontracting
Stock Transfer Using Stock Transport Order
Third-Party Processing
Returnable Transport Packaging
Pipeline Handling

For the purposes of the special procurement types, there are special stock types.

Item categories you can use in purchasing documents.

We will see how theses special procurement types and special stock types are used in the following processes.

Consignment

Consignment means that the goods procured are still in vendors ownership, but our company is keeping the material on stock and is able to sell it directly. Goods become the property of our company only in the case of consuming.

You can see two possible consignment scenarios / processes in the diagram below.

In both cases, the base of the process is a goods receipt for vendor consignment goods. After that, we will have consignment goods in our warehouse. If we want to sell the goods from consignment stock, we can do a stock transfer from warehouse to store consignment stock and sell directly from consignment stock.

If on the other hand, we choose not to keep the goods as consignment stock, we can do a transfer posting to own stock. Afterwards, we can send it to our store and sell it as own stock.

In the consignment process, we should create a purchase info record for the vendor/material combination, in order to predefine some information later used in the processes.

In the system, receiving the consignment stock is done in a few simple steps. RECEIVING CONSIGNMENT GOODS

Step 1)

Create a purchase order for the material using ME21N transaction.

Enter item category K - consignment goods.

Step 2)

Post goods receipt in MIGO transaction.

You can see that movement type is 101, and the special stock indicator is K - consignment stock (vendor).
Check items as OK, and Post.

After you have posted the goods receipt for vendor consignment goods, you can see the stock overview for the material has changed.

There are 120 pcs now in the Vendor Consignment row, as unrestricted.

Step 3)

Branching into two different scenarios from the process diagram.

From this point, we can create a stock transfer to a store storage location with MIGO transaction. We can then sell the goods from the consignment stock (payment obligation is generated at the point of sales).
In the second scenario, we can create a transfer posting to own stock (payment obligation at this point). Later on we can do whatever we like with the goods.

Let's say we have created a transfer posting to own stock upon goods arrival. We can do that by using MB1B with special stock type indicator K, and movement type 411.

We can see afterwards that our stock level is 244 pcs all on 0001 unrestricted. Our 120 pcs were transferred from consignment to own stock.

Step 4)

We are not creating an invoice using MIRO transaction for consignment goods. Instead, liabilities are settled in MRKO transaction for the appropriate period.

Execute MRKO transaction.
Enter Company Code and Vendor.
Enter the date range (you can use document date, per your preferences).
Choose special procurement type you want to settle for. Consignment.
Choose if you want to display available document or settle. Choose Display.
Show only withdrawals not settled or only settled withdrawals, or both.You can also restrict the displayed/settled records by material.Execute.

Step 5)

First we will choose to display the available documents for our selection.
We can see that the document is Not settled.

Go back to the initial screen and choose Settle instead of Display. Execute.
You can now see the message that a document 5100000001 was created.

Go back and choose to display documents, and choose to see Settled withdrawals.
Now there is a record matching your request. You can see that the status is now Settled.

This completes the process for consignment stock.

Stock Transport Order

In stock transfer process, goods are procured and supplied within a company. One plant orders the goods from another plant (they are called the receiving plant/issuing plant).

We can use a special type of purchase order - the stock transport order. The delivery process can be done either in Inventory Management or in the shipping component of logistics execution.

Step 1) Create a purchase order using ME21N.

Choose document type UB - Stock Transp. Order.
Choose Supplying Plant – 001.
Choose Receiving Plants Purchasing organization – 0002.
Purchasing group and Company Code.
In the item overview screen, enter material number and quantity.
Choose the receiving plant and Storage Location.

Save the document.

Step 2) Post goods issue from the issuing plant using MIGO transaction.

Choose A07 – Goods Issue.
Choose R01 – Purchase Order.
Enter the storage location from which goods are being issued.
Save the transaction – Post goods Issue.

After posting, you will get a material document.

Step 3) Do a goods receipt to a receiving plant for the stock transfer order - in MIGO.

Choose A01 – Goods Receipt.
Choose R01 – Purchase Order.
Post the Goods Receipt.

Now the stock transfer from plant to plant is done.

You can see the plant stock now. Obersdorf plant now has 12 pcs of material 10599999.

Stock transport order can also be done using the delivery process. You are able to create an outbound delivery based on your purchase order (stock transport order) in transaction VL10B. Then you can post the goods issue using the VL02N transaction (change outbound delivery). Finally you can do a PGR (post goods receipt) for delivery from the receiving plant.

Subcontracting

In subcontracting, you give components to a vendor from which a product is produced. The product is then ordered by your company through a purchase order. The components required by the vendor to manufacture the ordered product are imported in the purchase order through the BoM (Bill of Materials), and they are provided to the vendor. After the contractor has produced the finished product, we can post the goods receipt.

Step 1)

Create a standard purchase order for the material that has a BOM maintained.

Create a PO with item category L.
Enter the storage location where the material should be placed upon goods receipt.

Step 2)

On the Material Data tab, click the Components or Explode BOM icon.

On the component screen, enter storage location from which the components should be issued.

I have created a fake BoM for our material (we sure can't create LCD TV 40" from two components called semiconductors and plastics), but it's enough to serve the purpose (you can create a BoM in CS01 transaction if you don't have it for your test material).

Save the PO.

If your PO needs to be released, release it by using ME29N.

Step 3)

In stock monitoring transaction, we will provide the components for vendor.

Execute the transaction ME2O.
Enter Vendor.
Enter Plant.Execute.

Step 4)

You will get a list of open item for transfer towards the vendor. You can see the components from our purchase order.

Select the components (click the boxes next to components material numbers).
Post goods issue.

Step 5)

You will be prompted to confirm the items being PGI'd.

Just confirm the right storage location and quantity. Do that for all of the components.

Step 6)

You should see this kind of screen confirming that your PGI was done successfully for 2 items.

Step 7)

The next screen should look like this.

You can see that there is a material document for the components, with movement type 541.

Step 8)

You can post a goods receipt against a purchase order to receive the finished goods from the vendor.

Now you have issued the components to subcontractor, received the finished product.

You could have also created an outbound delivery for the components using ME2O transaction, and then posting goods issue through VL02N. Most of the time this type of processing is done in subcontracting.