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
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
- 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Price is taken from the consignment info record when goods are withdrawn.
- 02
Supplier delivers open in twin
The truck delivers 200 EA to plant 1000.
The goods arrive physically, but ownership stays with the supplier.
- 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.
- 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.
- 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The liability arises when consignment stock is withdrawn for your own use — here by transfer to own stock with 411 K, but equally by consuming it directly from consignment (e.g. 201 K to a cost center).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.
- 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.
- 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
Stock impact
| Step | Plant / SLoc | Stock type | MvT | Change |
|---|---|---|---|---|
| Goods receipt into consignment stock | 1000 / 0001 | Vendor consignment (K) · 100001 | 101 | +200 EA |
| Withdraw 50 EA to own stock (411 K) | 1000 / 0001 | Vendor consignment (K) · 100001 | 411 | −50 EA |
| Withdraw 50 EA to own stock (411 K) | 1000 / 0001 | Unrestricted use | 411 | +50 EA |
Accounting impact
Withdrawal from supplier consignment stock to own stock
TypicalWithdraw 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
TypicalPeriodic 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 dependentConsignment liability account.
Tax code for settlement
Configuration dependentSettlement 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
| Table | Description |
|---|---|
| MKOL | Special stock from vendor (consignment) |
| MATDOC | 101 K, 411 K movements |
| RBKP / RSEG | Settlement 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.
CHECK 1
Pricing
- Is there a consignment info record with a valid price?
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
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
| Version | Change |
|---|---|
| 1.2.0 | SME decision — one posting, one step: the 411 K transfer and its liability posting (Inventory / Consignment liabilities) now appear together in the withdrawal step. |
| 1.1.0 | SME 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. |
| 1.0.0 | Initial version. |