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com/ ©

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SAP CLOUD MM FOR DUMMIES

Special Stock & Special Procurement in @SAP Cloud

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

• Consignment

• Subcontracting

• Stock Transfer Using Stock Transfer Order

• Third-Party Processing

• Returnable Transport Packaging

• Pipeline Handling

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

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Item categories you can use in purchasing documents.

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

1.1 Consignment

Overview
By using the consignment process for procurement, the supplier provides the material and
stores it at site of the procuring party. The supplier maintains the legal owner of the material
until it is withdrawn from the consignment stores. Payment for consignment stock is only
required in case the material is withdrawn. For this reason, the supplier is informed of
withdrawals of consignment stock on a regular basis.

Key Process Flow

• Manage purchase orders

• Manage goods receipts

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• Manage stock

• Settle consignment

Create Consignment Info Record in @SAP Cloud

Preliminary Step

Purpose

In this procedure, you create consignment info records for procure process.

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Log on to the SAP Fiori launchpad as a Purchaser. The SAP Fiori launchpad is displayed.

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Open Manage Purchasing Info Records (F1982). The Manage Purchasing Info Records is
displayed.

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Choose Create Purchasing Info Records. The Purchasing Info Record screen is displayed.

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Make the following entries:

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Purchasing Info Record Category: <Consignment>

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Supplier: 12300001

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Material: RM128

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Purchasing Org.: 1210

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Plant: 1210

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Purchasing Group: 001

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Header data is added.

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Enter the following values:

Delivery Time in Days: <XX Days> , for example, 5
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Under Delivery Tolerance in %: <Tol. Underdl.>, for example, 10

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Over Delivery Tolerance in %: <Tol. Overdl.> , for example, 10

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Standard Qty: <Standard Qty> , for example, 1

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Order Unit: < Order Unit >, for example, PC

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Tax Code: <Input Tax Code>

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Choose Enter.
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In the Condition section, choose Add and make the following entries:

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Valid From: <Valid from Date>

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Amount: <Amount>, for example, 165

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Pricing Unit: <Pricing Unit>

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Valid To: <Valid to Date>

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Currency: <Currency>
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Choose Apply.

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When the TDT(time dependent tax) is activated via SSCUI 101016 (Define Tax Codes for Sales
and Purchases) for Country of company code and Tax Code is given, the Tax Rate Valid From
field is mandatory. You can enter current date, which will be adjusted to validate start date
of tax code according to the setting in SSCUI.
When the RITA(Registration for Indirect Taxation Abroad) is activated. tax registration country
is maintained from company code in SSCUI 103463 (Activate RITA and Maintain Tax
Registration Countries) and tax code is given, the Tax Country field is mandatory, in which the
country ID of company code is given as a default value, but you can change to the valid country
ID that is maintained in SSCUI accordingly. Condition Data is added.
Choose Save. A purchasing info record for consigned procurement is saved.

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Step 1) Create a consignment purchase order for the material using Manage purchase orders
tile

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1. Enter item category K – consignment goods.

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Step 2) Post goods receipt in Post Goods Receipt for Purchasing Document tile.

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1. Check items as OK, and Post.

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

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There are 10 pcs now in the Vendor Consignment row, as unrestricted.

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SAP SD FI Integration and Account Determination for Dummies

SAP SD FI integration and account determination are essential aspects for ensuring smooth financial
record keeping within an SAP system. Here's a breakdown of these concepts and their interplay:

SAP SD and FI Integration:

SD (Sales and Distribution): This SAP module manages the sales lifecycle, encompassing processes like
order creation, inventory management, deliveries, and billing.
FI (Finance): This module deals with financial management tasks like accounts payable/receivable,
general ledger accounting, and financial reporting.

Integration between SD and FI is crucial for recording sales transactions accurately in the financial
accounts. When a sales order progresses through delivery and billing stages in SD, the corresponding
financial entries are automatically created in FI. This ensures data consistency and facilitates tasks like
revenue recognition and monitoring outstanding customer payments.

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Step 3) Transfer Stock

Purpose

In this step, stock is transferred from the vendor consignment stock to the own inventory by
transfer posting. Please confirm there is enough quantity in the vendor consignment stock.

Log on to the SAP Fiori launchpad as a Warehouse Clerk. The SAP Fiori launchpad is
displayed.

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Open Transfer Stock - In-Plant (F1061). The Transfer Stock – In-Plant screen is displayed.

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Make the following entries in the fields and choose Enter:

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Material: RM128

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Plant: 1210
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The Transfer Stock- In-Plant screen is displayed.

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Choose the icon beside the stock that you want to transfer (Unrestricted-Use Stock, Storage
location 121C). A dialog box opens with Special Stocks, Stock Type, and current
Quantity.

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In dialog box, choose item Supplier Consignment XX PC.

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Choose the icon beside the stock that you want to transfer (Unrestricted-Use Stock, Storage
location 121C) again. A dialog box containing Special Stocks, Stock Type, and current
Quantity is displayed.

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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In dialog box choose Unrestricted-Use Stock XX PC. A dialog box appears. The Storage
Location, Stock Type, current Quantity, Special Stock Type and Supplier are displayed
according to your entries in the previous steps.

youtube.com/@s4hclubforyou

In dialog box, make the following entries in the fields and choose Post.

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For example:Supplier: Domestic 10 Supplier 1

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Document Date: Today

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Posting Date: Today

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Quantity: x PC The system displays Material document xxx created.

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The stock has been transferred from the vendor consignment stock to the own inventory.

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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Step 4) Invoice Receipt from Consignment Withdrawal

Purpose

The liabilities should be cleared regularly towards the supplier because of goods issues from
the vendor consignment stock. The consignment goods are settled with invoice receipt.

Log onto the SAP Fiori launchpad as Accounts Payable Accountant . The SAP Fiori Launchpad
displays.

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youtube.com/@s4hclubforyou

Open Create Logistics Consignment and Pipeline Settlement (MRKON) . The Consignment
and Pipeline Settlement screen displays.

youtube.com/@s4hclubforyou

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On the selection screen, enter the following values then choose Enter:

youtube.com/@s4hclubforyou

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Company Code: 1210

youtube.com/@s4hclubforyou

Supplier : 12300001

youtube.com/@s4hclubforyou

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Plant: 1210

youtube.com/@s4hclubforyou

Material Document: （optional） Enter the material document number created from the last
step

youtube.com/@s4hclubforyou

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Consignment: Selected

youtube.com/@s4hclubforyou

Pipeline: Deselected

youtube.com/@s4hclubforyou

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Settle: Selected

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Withdrawals Not Settled: Selected

youtube.com/@s4hclubforyou

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Choose Execute. The invoice is posted.

youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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On the Logistic Consignment and Pipeline Settlement screen, you can see the invoice
document number under column Doc. No.. The settlement document is created.

youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

Check Supplier Invoice List in @SAP Cloud

Purpose

In this step, you can review the document created in the last step and get the generated
consignment settlement document.

Open the Fiori launchpad as an Accounts Payable Accountant. The SAP Fiori launchpad
is displayed.

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youtube.com/@s4hclubforyou

Open Supplier Invoices List (F1060a). The Supplier Invoices List screen is displayed.

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

On the Supplier Invoices List screen, enter the following values, then choose Go:

youtube.com/@s4hclubforyou

Invoicing Party : 12300001

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youtube.com/@s4hclubforyou

Company Code: 1210 Invoices list is displayed.

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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Choose the invoice you created, whose Entry Type is Consignment. The screen will be
navigated to the Supplier Invoice detailed page.

youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

On the Supplier Invoice screen, go to the Output tab. In the Output Details table, find the line
with Output Type of CONSIGNMENT_SETTLEMENT. Choose Display Document in the Preview
column.

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

The document (in this case, Consignment Stock Accounting) is displayed.

Download the document. The document is downloaded to your local workspace.

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

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Send the downloaded document to the supplier as printed document, or by fax or by e-mail
or via the Internet.
The step is executed offline. The document is sent to the supplier.

This completes the process for consignment stock.

1.2 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.

Overview
The process begins with a requirement to transfer material from one plant to another within
the same company code. The stock transfer without delivery can be performed in two
different ways.

A one-step transfer posting at the issuing plant moves the stock immediately from the issuing
plant to the receiving plant. This is useful if the distance between the two plants is short and
there is no need for stock-in-transit stock overview.

A buyer at the receiving plant requests material with a stock transport order. This is useful if
the issuing plant needs a formal request to send material to the receiving plant or the distance
between the two plants is longer.

There are no master data requirements beyond the material master to support the stock
transfer process. The material master must exist in both the procuring (receiving) plant and
the providing (issuing) plant. Also, stock transfer purchase orders are not subject to approval
like other purchase orders.

Key Process Flow

• Transfer stock in one step

• Create stock transport order

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• Post goods issue for stock transport order

• Check the status of the stock transfer

• Receive transferred materials

Preliminary Step

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

Step 1) Create Stock Transport Order (Without MRP)

Log on to the SAP Fiori launchpad as a Purchaser. The SAP Fiori launchpad displays.

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youtube.com/@s4hclubforyou

Open Create Purchase Order - Advanced (ME21N). Create Purchase Order screen displays.
Enter the following data:

youtube.com/@s4hclubforyou

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● Order Type: UB (Stock Transp. Order)

youtube.com/@s4hclubforyou

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Then choose Enter.

youtube.com/@s4hclubforyou

Enter the following data:

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● Supplying Plant: 1020

youtube.com/@s4hclubforyou

● Header / Org. Data:

● Purchasing Org.: 1010
● Purchasing Group: 002
● Company Code: 1010

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youtube.com/@s4hclubforyou

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● Item Overview:
● Material: TG11

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● Quantity: x pc
● Delivery Date: any date in the future
● Plant: 1010
● Storage Location: 101A

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

Then choose Enter. All data are entered. The item detail screen opens.

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youtube.com/@s4hclubforyou

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Choose Save and when the purchase order number is displayed, write it down for further use.
A new purchase order is created. Purchase order number is displayed.

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Write down the stock transport order number for further usage.

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Step 2) Post Goods Issue for Stock Transport Order

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Purpose
This process step shows you how to post goods issue for stock transport order.

Log on to the SAP Fiori launchpad as a Warehouse Clerk. The SAP Fiori launchpad displays.

youtube.com/@s4hclubforyou

Open Post Goods Movement (MIGO). The Post Goods Receipt Purchase Order screen
displays.

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On the following screen, make the following entries and choose Enter:

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● Goods Issue: Select

youtube.com/@s4hclubforyou

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● Purchasing Order: Select

youtube.com/@s4hclubforyou

● Purchasing Document Number: Purchase document number

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

● (Movement Type): 351

youtube.com/@s4hclubforyou

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Choose Execute or choose Enter. The items for the selected purchase order displays.

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Make the following entries:

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● Quantity: quantity , for example, <100>

youtube.com/@s4hclubforyou

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● Storage Location: 102A

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Make sure TG11 have stock in the storage location. If no, please do initial stock for them.

Check if the item OK indicator is set.

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Choose Post.

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youtube.com/@s4hclubforyou

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Check Status of Stock Transfer with Stock- Single Material

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Purpose

This process step shows you how to check status of stok transfer with stock-single material.

Log on to the SAP Fiori launchpad as a Warehouse Clerk. The Fiori launchpad displays.

youtube.com/@s4hclubforyou

Open Stock - Single Material (F1076). The Stock Single Material screen displays.

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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Enter material TG11 and choose Enter. You receive an overview of the materials. This
concerns all materials that have left the supplying plant and haven’t yet reached the receiving
plant.

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youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

Step 3) Post Goods Receipt for Stock Transport Order

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Purpose
This process step shows you how to check the stock transport order and post goods receipt.

Log on to the SAP Fiori launchpad as a Warehouse Clerk. The SAP Fiori launchpad displays.

youtube.com/@s4hclubforyou

Open Post Goods Receipt for Purchasing Document (F0843). The Purchasing
Document screen displays.

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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Open Purchasing Document Search. A list of purchasing documents displays.

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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Select your purchase order. The system displays the data for the goods receipt on the Post
Goods Receipt screen.

youtube.com/@s4hclubforyou

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Make the following entries and choose Enter

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● Delivery Note: xxx

youtube.com/@s4hclubforyou

● Printing (Controls output management after posting): Individual slip

youtube.com/@s4hclubforyou

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Select the items for which a goods receipt is to be posted.

youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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Enter the following data:

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● Storage Location: for example, 101A

youtube.com/@s4hclubforyou

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Choose Post. The Post is activated.The Post Goods Receipt screen displays. The system
shows Material document xxx posted message.

youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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1.3 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.

Overview
A subcontract purchase requisition is either generated via the Material Requirements
Planning (MRP) process or manually by a requestor. The purchase requisition is converted
into a subcontract purchase order. The purchase order is subject to approval based on
predefined parameters before being issued to the subcontractor. The outbound delivery is
created, and the goods are picked and shipped to the subcontractor. With the supply of the
finished material, the goods receipt is created. The consumption of the sent components is
recorded upon the receipt of the value-added finished material. Subsequently, the invoicing
process is triggered.

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Key Process Flow

• Manage purchase orders

• Manage stock

• Manage outbound deliveries

• Pick and post goods issues

• Manage goods receipts

• Manage invoices

• Serial number processing

Preliminary Steps

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I have created a BoM for material 231 LCD TV 4K 40 with two components called
semiconductors and plastics :

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youtube.com/@s4hclubforyou

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Step 1) Create a standard purchase order for the material that has a BOM maintained.

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youtube.com/@s4hclubforyou

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1. Create a PO with item category L.

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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2. Enter the storage location where the material should be placed upon goods receipt.

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youtube.com/@s4hclubforyou

youtube.com/@s4hclubforyou

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Step 2) On the schedule lines tab, click > to display Components.

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Save the PO.

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Step 3) In Subcontracting Cockpit, we will provide the components for vendor.

1. Execute the tile Subcontracting Cockpit.

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youtube.com/@s4hclubforyou

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2. Enter Vendor.

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3. Enter Plant. Execute.

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Step 4) You will get a list of open item for transfer towards the vendor. You can see the
components from our purchase order.
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1. Select the components (click the boxes next to components material numbers).

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2. Post goods issue.

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Step 5) You will be prompted to confirm the items being PGI.

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

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Step 6) You should see this kind of screen confirming that your PGI was done successfully for
2 items.

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Step 7) The next screen should look like this.

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

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Step 8) You can post a goods receipt against a purchase order to receive the finished goods
from the vendor.

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

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