What is Consignment Process

Answer

In consignment process product are stored at the customer location but the owner of this product is still company. Customer stores the consignment stock at their own a warehouse. Customer can consume product from warehouse at any time and customer billed for product for actually quantity consumes. In Consignment Stock Processing, there are four main transactions in the SAP System, all of which support separate management of stock:

• Consignment Fill-Up (Stock Fill up at warehouse).
• Consignment Issue (Stock issue from warehouse).
• Consignment Return (Stock return from customer).
• Consignment Pickup (Stock return to manufacture).