Consignment : The process in which vendor places their stock in our company warehouse, immediately no Invoice from vendor, so no payment. Whenever any internal department needs the material, can be issued from vendor consignment stock with movement type 201 K , where K is special stock called consignment stock here. Configurations : Since this invoice will be settled automatically set condition record in NACE t code for application MR > and KONS (same for pipe line as well as consignment) now set the conditions and enable communication too for vendor that can be set immediately or fortnight etc.) 1. Maintain Info record : with Info category as Consignment. and with standard pur organization. a> Enter validity period of Consignment, and Net Price as Price will take from Info record condition itself. b> Enter Tax code also, Since the liabilities to vendor should be settled automaticaly by automatic Invoice in MRKO If no Tax code then automatic settlement will be failed. 2. Create Purchase requisition in me51n with Item category as K ie., Consignemnt. Enter material and Quantity of vendor stock. If you want the automatic purchase requisition to be created with item catgory as K, then in MRP 2 view, enter special procurement as Consignment. 3. Create Purchase Order w.r.t P R , in item row enter simply purchase requisition number and data will be copied. Here, in PO due to item cat K, invoice tab will be supressed, and also acc assignment cat is not allowed. also observe netprice field is greyd out . 4.Enter Goods Receipt for Consignment stock w.r.t PO Here observe at header level, movement type is 101 where as item level movment type is 101 K + further after posting GR, we observe that no accounting document is created this is completely controlled by item category K since GR non-valuated is selected (means NO- VALUE) and firmed 5. Now post GR, observe the stock in MMBE, 6. now issue the stock to any user department say cos center ( can be production also) . with movt type 201 K here observe that partner tab will be generated , inorder to mention which vendor stock you are consuming. Accounting doc will be created here. Consumption G/L acc will be debited with trans keys GBB and VBR acc payable will be credited with KON. 7. Enter automatic settlement IR in MRKO T.code and settle the consumed liabilities. 8. Print or tramsmit the invoice to vendor in mr90 / MR91 T code. Vendor acc will be credited with KBS. I hope this completes the consignment process with configurations.