Scenario
Consignment goods are goods which are stored at the customer location but which are still owned by your company. The customer is not obliged to pay for these goods until they are removed from consignment stock. Otherwise, the customer can usually return consignment goods which are not required.
The customer receives materials in its own warehouse without buying them yet. In the system the materials are still visible as special stock (type W) in the same plant and storage location as before the delivery took place. Only when the customer withdraws the materials from the consignment stock an invoice will be created and the quantity will be removed from the stock figures.
Consignment goods are goods that are stored at the customer plant but that are still the property of the issuing company. The settlement of the goods is only necessary if the customer withdraws them from the consignment stock. The stockholding of the consignment goods is transferred to the customer.
Further explanations:
- Consignment fill-up:
- fills up the consignment stock at the customer. Typically sales document type KB is used for this. Before creating the delivery the ARun must be executed for ARun-relevant materials. By posting the goods issue the corresponding stock is posted from the unrestricted-use stock to the consignment stock (special stock).
- Consignment issue:
Using the consignment issue the customer can withdraw consignment goods from the special stock for usage or for sales. This procedure typically uses sales document type KE. Even for ARun-relevant materials this movement is not relevant for supply assignment. When posting the goods issue the corresponding quantity is subtracted both from the customer special stock and your own valuated stock.
- Consignment returns
are used if the customer wants to post goods back to the consignment stock. Sales document type KR is pre-defined for this step.
- Consignment pick-up:
Sales document KA is typically used for this process. Even for ARun-relevant materials this movement is not relevant for supply assignment.