Special Stocks and Special Procurement Types

The following special procurement types exist in MM

1. Consignment
2. Subcontracting
3. Stock Transfer Using Stock Transport Order
4. Third-Party Processing
5. Returnable Transport Packaging (RTP) Process
6. Pipeline Handling Process

Consignment

When buying goods on consignment, the ordered goods

still belong to the vendor, even after delivery. The goods
only become the property of the company supplied
when they are consumed. The quantity
consumed/withdrawn is settled with the vendor
periodically, for example on a monthly basis.

Steps to perform Consignment

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1. Create a Material Master - MM01
2. Create Consignment Info Record - ME11
3. Create Consignment PO - ME21N
With Item Category - K
4. Create GR - MIGO - 101 K
5. Monitor Stock Overview - MMBE - VENDOR
CONSIGNMENT STOCK
6. Create TP - MB1B/ 411 K
7. Monitor Stock Overview - MMBE
8. Create Consignment Settlement – MRKO
Pipeline Handling Process

In pipeline handling, the company does not need to

order or store the material concerned. It is ready
available as and when required via a pipeline (for
example, oil or water), or some other type of cable (for
example, electricity). Consumption of the material is
settled with the vendor on a regular basis.

Steps to perform Pipeline Handling Process

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1. Create a Material Master - MM01 with Matl.Type - PIPE
2. Create Pipeline Info Record - ME11
3. Create GI - MB1A/201 P
4. Create Pipeline Settlement - MRKO

Returnable Transport Packaging Process – RTP Process

The company orders goods from a vendor. The goods

are delivered with returnable transport packaging
(pallets, containers, cylinders) that belongs to the
vendor and is stored on the customer premises until
they return it to the RTP Vendor.

Steps to perform RTP Process

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1. Create two material masters with matl.type LEIH,
FERT - MM01
2. Create PO - ME21N
3. Create GR - MIGO / 501M for RTP material
4. Monitor Stock Overview - MMBE for RTP material
5. Return RTP material back to the vendor - MB1C/ 502 M
6. Monitor Stock Overview – MMBE
Stock Transfer Using Stock Transport Order

In stock transfer processing, goods are procured and

supplied within a company. One plant orders the goods
internally from another plant (receiving plant/issuing
plant).

The goods are procured with a special type of purchase

order - the stock transport order. You can request and
monitor the transfer of goods with a stock transport
order. The delivery can be processed in Inventory
Management or in the Shipping component.

Steps to perform Stock Transport Order Process

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1. Create material master in both supplying and
receiving plants - MM01
2. Maintain the stock in the supplying plant - MB1C/501
3. Create Stock Transport Order with Item Category - U -
ME21N
4. Create Transfer posting with supplying plant and
supplying storage location - MB1B/351
5. Monitor Stock Overview - MMBE
6. Create GR with reference to STO with receiving plant -
MIGO
7. Monitor Stock Overview – MMBE
Subcontracting

In subcontracting, the vendor (the subcontractor)

receives components from which it produces a product.
The product is then ordered by your company through a
purchase order. The components required by the vendor
to manufacture the ordered product are listed in the
purchase order and provided to the subcontractor. The
components can be determined by the system via a bill
of material.

Steps to perform Subcontracting Process

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1. Create material master for the subcomponents and for
the finished component - MM01 with material type ROH
and FERT
2. Maintain the stock for the subcomponents - MB1C/501
3. Create Subcontracting Info record for the finished
component - ME11
4. Create a Subcontracting PO with Item Category - L -
ME21N
5. Create Transfer Posting - MB1B/541
6. Stocks at Subcontractor - MBLB
7. Monitor Stock Overview - MMBE
8. Create GR - MIGO
9. Monitor Material Doc - MB03
10. Then the system displays movement type 101 for the
finished component and 543 for all the subcomponents.
Third-Party Processing

In third-party processing, a company passes on a sales

order to an external vendor who sends the goods
directly to the customer. The sales order is not
processed by your company, but by the vendor. Third-
party items can be entered in purchase requisitions,
purchase orders, and sales orders.

Third-party processing is integrated with the Sales and

Distribution (SD) component. If the sales order contains
third-party items, the system creates a purchase
requisition from the sales order.

Steps to perform Third Party Processing Process

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1. Create material master with material type FERT -
MM01
2. Maintain the stock for the material - MB1C/501
3. Create Sales Order - VA01
4. Create Third Party PO with A - 1, I - S - ME21N
5. Create Invoice - MIRO
6. Create Sales Invoice - VF01