Training & Performance Support

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Overview
Vendor Consignment Stock Material Price Revaluation Material Master Period Closing

Integration of Accounts Payable with Inventory

The key processes related to stock that have to performed by finance users are:
- Vendor Consignment Stock - Material Price Revaluation - Material Period Closing

Content

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Overview
Vendor Consignment Stock Material Price Revaluation Material Master Period Closing

Introduction
In consignment processing, the vendor provides materials and stores them on your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment.

Goods arrive at warehouse

Goods are stored

Goods are controlled

Goods are consumed or dispersed

Normal Stock Scomi is legal owner Consignment Stock Supplier is legal owner

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= Payment & Transfer of Ownership

Operations will have to maintain Vendor Consignment Stock by the steps below:
Create Consignment Info Record Create Consignment Purchase Order Goods Receipt of Consignment stock Transfer Posting and/or Goods Issue of Consignment stock

Finance will have to perform the step below after consignment stock has been transferred and consumed:
Consignment Settlement
Payment to Vendor if stock lost Debit note to Vendor if stock gain

Settling Consignment Liability

Upon consumption of vendor consignment materials, we need to perform consignment settlement and process payment to vendor. Settlement can be performed on case-to-case basis or periodically, depending agreement with vendor.
Finance verify Supplier Invoice against consumptio n report

Warehouse / Operations inform Purchaser on Consignment goods consumed

Purchaser generate consumption report to Vendor and Finance

Finance perform Consignment Settlement

Finance generate Payment to Vendor

Vendor send Invoice

System Demo and Exercise

Perform Consignment Settlement
- Consignment Settlement (MRK0)

Content

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Overview
Vendor Consignment Stock Material Price Revaluation Material Master Period Closing

Introduction (MM03-Display Material)

Finance users can change the material Standard Price or MAP in the material master

System Demo and Exercise

Change Material Price
- Change material price (MR21)
-Change the price of material based on the price control is Standard Price of MAP

- Debit/Credit material (MR22)

-Revaluate the price of the Standard Price old stocks for, only MAP price will change

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Content

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Overview
Vendor Consignment Stock Material Price Revaluation Material Master Period Closing

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MM03 - View Material Master Posting Period

All Inventory Postings to Finance are based on the material master current period

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MMPV Close Period for Material Master Records

The company codes where material master need to be closed

The new financial posting period

Perform checking and closing

SCOMIs design is to disallow backposting i.e. posting inventory back to previous month
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Impact of closing Material Master Period (MM03)

Current Period of Material Master for the Company is set to New Period

Total Stock and Value transferred to Previous Period

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Impact of closing Material Master Period (Goods Receipt)

Stock Movement can only be posted to Current Period of Material Master since SCOMI disallow back-posting

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MMRV Allow Posting to Previous Period

CAUTION : Posting period in material master differ from Finance Once current period is opened, it is not possible to revert back to previous period

Inventory posting in SCM can only be made to current period and with exception back one posting period

SCOMI disallow back-posting, this indicator should be set

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Questions and Answers Accounts Payable

Any

Questions?

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