In the world of SAP Accoutrements Management( MM), one conception that plays a pivotal part in optimizing force and reducing purchasing costs is Consignment Stock. numerous businesses calculate on consignment processes to insure material vacuity without incontinently retaining the goods. Understanding how consignment stock works in SAP is essential for procurement professionals, force chain directors, and SAP learners.
still, enrolling in high- quality SAP Classes in Pune, SAP Course in Pune, If you’re planning to make a strong career in SAP MM.
This comprehensive companion explains what consignment stock is, how it works in SAP, what processes are involved, and why it’s salutary.
What Is Consignment Stock in SAP?
Consignment Stock refers to force that’s physically stored at the client’s demesne but still possessed by the seller until it’s consumed. In simple terms
- The vendor owns the stock.
- The customer stores and uses the stock.
- Payment is made only after consumption.
SAP provides flexible functionalities for managing consignment stocks through specific movement types and purchasing documents.
Key Features of Consignment Stock in SAP
- No financial liability for the customer until goods are consumed.
- Vendor retains ownership during storage.
- Consumption triggers the settlement process.
- Improves material availability without tying up capital.
- Streamlined tracking through SAP MM transactions.
How Consignment Stock Works in SAP MM
SAP MM provides a detailed process flow for handling consignment stock.
- Consignment Info Record (K – Consignment)
The consignment process begins with the creation of an info record (ME11) with the consignment category. This sets pricing conditions and vendor-specific details.
2. Consignment Purchase Order (K – Item Category)
A consignment PO is created using item category “K”, indicating that the goods belong to the vendor until consumed.
3. Goods Receipt (Movement 101 K)
When materials arrive, the goods receipt is posted as consignment stock, which does not affect financial accounting since the vendor still owns the stock.
4. Consignment Consumption (Movement 411 K)
When materials are used in production or issued for consumption, ownership transfers to the customer. This movement triggers accounting entries.
5. Vendor Settlement (MRKO)
SAP provides an automated settlement feature where:
- All consumed stock is listed,
- Payment is calculated,
- Vendor settlement is posted.
This ensures transparency and accuracy in the consignment process.
Benefits of Consignment Stock in SAP
1. Zero Initial Investment
Customers do not pay for inventory until used, improving cash flow.
2. Stock Availability
Material is always available onsite, reducing delays.
3. Automated Vendor Settlement
SAP automates consumption-based payments, ensuring efficiency.
4. Improved Vendor–Customer Collaboration
Both parties benefit from optimized supply chain operations.
These benefits make consignment stock a popular inventory model in SAP-driven companies.
Why Learn Consignment Stock as an SAP Professional?
Mastering consignment processes helps professionals excel in roles like:
SAP MM Consultant
Procurement Analyst
Inventory Controller
Supply Chain Manager
SAP Support Engineer
Learning these topics through professionally structured SAP Classes in Pune, or a career-focused SAP Course in Pune, helps you gain practical knowledge and hands-on training.
IT Education Centre – The Best Institute for SAP MM Training
To learn concepts like consignment stock in a real-time environment, the IT Education Centre offers one of the best SAP Training in Pune with expert guidance and industry practices.
Below are the key highlights of why IT Education Centre stands out.
Why Choose Us? (IT Education Centre)
- 12+ years of training excellence
- Hands-on training with live projects
- Highly experienced SAP MM trainers
- Access to SAP server for practice
- Flexible batches and EMI options
Placement Support
- 100% placement assistance
- Resume-building & interview training
- Mock interviews with experts
- Tie-ups with 100+ hiring partners
- Dedicated placement coordinator
Trainer Profile
- 10+ years of SAP MM domain experience
- Real-time project exposure
- Strong track record of student success
Social Media Profiles
Reviews
Students consistently appreciate:
- Practical teaching methods
- Trainer expertise
- SAP server access
- Supportive learning environment
Google My Business (GMB) Ratings & Review Count
- GMB Rating: ★★★★★ 4.9+
- Review Count: 1500+ reviews from students
This shows the strong trust and reputation IT Education Centre has built over the years.
Location & Contact
IT Education Centre – Pune
3rd Floor, Renuka Complex, D-0, Jangali Maharaj Rd, opp. MC Donalds, Shivajinagar, Pune, Maharashtra 411004
Contact: 02048553007| Website: IT Education Centre
SAP MM Syllabus
Below is the detailed syllabus covered under the SAP Course in Pune:
Module 1: SAP Overview
- Introduction to ERP & SAP
- SAP navigation
- SAP organizational structure
Module 2: Master Data
- Material master
- Vendor master
- Purchase info record
- Source list
Module 3: Procurement Process
- Purchase requisition
- Purchase order
- RFQ & quotations
Module 4: Goods Movement
- Goods receipt
- Goods issue
- Stock transfer
Module 5: Inventory Management
- Movement types
- Reservations
- Physical inventory
Module 6: Invoice Verification
- Invoice posting
- ERS (Evaluated Receipt Settlement)
Module 7: Special Procurement Types
- Subcontracting
- Stock transport order
- Consignment
- Pipeline material
Module 8: Pricing & Release Strategy
- Pricing procedure
- Release codes & indicators
Module 9: Integration
- MM + SD
- MM + PP
- MM + FI
Module 10: SAP S/4HANA Differences
Module 11: Live Project + Real-Time Case Studies
FAQs about IT Education Centre
1. Do you provide real-time SAP MM training?
Yes, our training includes live projects and real-time scenarios.
2. Is placement guaranteed?
We provide 100% placement assistance, not a placement guarantee.
3. Will I get SAP server access?
Yes, students receive SAP ECC and S/4HANA server access.
4. Are trainers SAP-certified?
Yes, many of our trainers are certified SAP professionals.
5. Do you offer weekend batches?
Yes, weekend and weekday batches are available.
- What’s the duration of the SAP Course in Pune?
Typically 2–3 months depending on batch type.
7. Do you provide study material?
Yes, complete study notes and interview questions are included.
8. Will I get a certificate?
Yes, students receive a course completion certificate.
9. Do you help with resume building?
Absolutely, we conduct resume workshops.
10. Are online classes available?
Yes, both online and classroom modes are offered.
11. Can I repeat classes if I miss a session?
Yes, backup classes are provided.
12. Do you conduct mock interviews?
Yes, multiple mock interview rounds are part of the training.
13. What are the fees for SAP Training in Pune?
Fees depend on the module and mode; contact us for details.
14. Do you teach SAP S/4HANA?
Yes, the course includes both ECC and S/4HANA.
15. Is prior SAP knowledge required?
No, even beginners can enroll.
Final Thoughts
Understanding consignment stock in SAP is essential for anyone pursuing a career in procurement, inventory management, or supply chain analytics. SAP’s consignment functionality helps organizations maintain sufficient stock without financial burden and improves vendor collaboration.
If you are looking to gain an in-depth understanding of SAP MM topics—including consignment stock—joining a professional SAP Course in Pune, SAP Classes in Pune, or SAP Training in Pune at the IT Education Centre will help you build strong technical expertise and confidence.
With expert trainers, hands-on labs, and excellent placement support, IT Education Centre remains one of the top choices for SAP learners in Pune.