Describing Consignment Collaboration Configuration

Consignment is a concept whereby the physical location and ownership location of the goods differ. This gives the Buyer the flexibility of having the inventory on, or close to, its premises, while deferring ownership until consumption.

Consignment Collaboration enables Suppliers to view a list of materials on consignment and allows them to create Invoices for consignment movements. It also allows Buyers to create self-billing Invoices for consignment movements.

For an overview of the Consignment Collaboration process, watch this video:

The following figure illustrates the consignment Collaboration process flow.

For Consignment Collaboration, all configuration takes place in SAP ERP and SAP S/4HANA. The configuration tasks required to use the Consignment Collaboration component are as follows:

1. Maintain the parameter required to integrate the Supplier-created Consignment Invoices.
2. Implement the customer exit required to integrate Supplier-created Consignment Invoices.
3. Implement the BAdIs for Supplier-created Consignment Invoices.
4. Run a consignment report for Product Activity Messages.