What is vendor consignment stock in SAP MM-IM - Inventory Management?

SAP Term: vendor consignment stock

• Component: MM-IM

• Component Name: Inventory Management

• Description: Stock made available by the vendor that is stored on the purchaser's premises but remains the vendor's property until withdrawn from stores for use or transferred to the purchaser's valuated stock.

Smart SAP Assistant

• Key Concepts: 
  Vendor consignment stock is a type of inventory management in SAP that allows a vendor to store goods at the customer’s premises. The customer does not pay for the goods until they are used or sold. The vendor retains ownership of the goods until they are used or sold. 
  
  How to use it: 
  In SAP, vendor consignment stock is managed through the Inventory Management (MM-IM) component. The customer must first create a consignment info record in the system, which contains information about the vendor and the goods being stored. The customer then creates a consignment purchase order, which is used to transfer the goods from the vendor to the customer’s premises. Once the goods are received, they are stored in a consignment stock location. 
  
  Tips & Tricks: 
  When creating a consignment info record, it is important to ensure that all relevant information is included, such as the vendor’s name and address, as well as details about the goods being stored. It is also important to ensure that the correct stock location is specified for storing the goods. 
  
  Related Information: 
  For more information on vendor consignment stock in SAP, please refer to SAP Help documentation on Inventory Management (MM-IM).