SAP SD Consignments refers to those goods which are stored at the customer’s location but are owned by the business. The consignment quantity is monitored and controlled separately from the rest of the stock.
The customer pays only for those goods used or consumed from the consignment stock. The customer can usually return consignment goods which are not required. There are four main transactions for processing consignment stock –
- Consignment Fill-Up
- Consignment Issue
- Consignment Returns
- Consignment Pick-Up
Consignment Fill-up
When consignment stock is shipped to the customer, the transaction is referred to as consignment fill-up.
- In consignment fill-up, goods are delivered to the customer but they remain the property of the business.
The transaction is not relevant for pricing and billing. Hence no invoice is generated.
Consignment Issue
Consignment issue enables the customer to take consignment goods from the special stock for their use.
- The customer or the consignee may use the stock at his site and indicates the business of the same.
- The consignment stock that is used now becomes the property of the customer.
- The customer pays only for those quantity of goods consumed by him.
Consignment Fill-Up
Consignment Issue
Consignment Returns
Consignment Return involves the return of already issued consignment goods, by the customer, back to the consignment stock.
- The transaction is not relevant for billing as the returned stock was regarded as part of business inventory.
- The customer may then request for a credit note for returns.
Consignment Pick-Up
Consignment Sales
