Standard Tools Can Eliminate Multi-Source Consignment Confusion

  • by Gaetano Altavilla, Senior SAP Practice Manager
  • April 3, 2009
See how to resolve problems related to ownership of materials that affect supply chain processes such as inventory tracking and invoicing.
Key Concept
Multi-source consignment refers to raw materials purchased from different vendors, but stored or mixed together in a common container, such as beverages or food items. Although it is not a best practice, it still is common. To track multi-source consignment, you can use processes already implemented in production environments for Materials Management (MM), Production Planning for Process Industries (PP-PI), and Accounts Payable (A/P) in SAP ERP Central Component (SAP ECC) 6.0.
Before you can order a material from a vendor or post a goods receipt to consignment stock, you must maintain the consignment price for the vendor in an info record (a unique document relevant for price during the consumption of the goods). That’s quite easy if you have one vendor per material. However, suppose you have a material stored in a common container mixed with items from other vendors (e.g., juice). How can you set up a system to help you order, track, and maintain the vendors individually for what is technically one product?

Gaetano Altavilla

Dr. Gaetano Altavilla is a senior SAP practice manager. His focus is on pre-sales, delivery of SAP application solutions for large international corporations, and SAP knowledge management in Europe, the Middle East, and Africa (EMEA).

In his 18 years of SAP application experience working for many multinational companies, such as Procter & Gamble and Hewlett-Packard, he has covered a wide range of ERP logistic areas, focusing on the MM, WM, SD, LES, PP, PP-PI, PLM (QM, PM, PS) modules, as welll as CRM (TFM), SRM (EBP), SCM (SAP APO), and MES (ME) components.

Dr. Altavilla holds a degree with first-class honors in mathematics from the University of Naples and is certified in many SAP modules: SAP Logistics Bootcamp, SAP MM, SD, LE (SHP/WM/LE), PP, PLM (PM, QM, PS), SRM, CRM, SCM (APO), SCM (TM), FI, CO, and Solution Manager. He also has experience in ABAP/4 and application link enabling (ALE) and IDocs. He has participated in numerous industry conferences, such as the SAP Skills Conference in Walldorf at SAP SE.

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