What is consignment order in SAP MM-PUR - Purchasing?

SAP Term: consignment order

• Component: MM-PUR

• Component Name: Purchasing

• Description: A request by an enterprise the ultimate purchaser to a consignment vendor to replenish stocks of material held in consignment stores by supplying the stipulated quantity.

Smart SAP Assistant

• Key Concepts: 
  A consignment order is a type of purchase order in SAP Materials Management (MM) Purchasing. It is used when a vendor provides goods to a customer on consignment, meaning that the vendor retains ownership of the goods until they are sold to the customer. The customer is then responsible for paying for the goods only after they have been sold. 
  
  How to use it: 
  In SAP MM Purchasing, a consignment order is created when a vendor provides goods to a customer on consignment. The order contains information about the goods, such as quantity, price, and delivery date. The order also contains information about the vendor, such as contact information and payment terms. Once the order is created, it can be tracked and monitored in SAP MM Purchasing. 
  
  Tips & Tricks: 
  When creating a consignment order in SAP MM Purchasing, it is important to ensure that all of the necessary information is included in the order. This includes the quantity of goods being provided, the price of each item, and the delivery date. Additionally, it is important to ensure that all of the vendor’s contact information and payment terms are included in the order. 
  
  Related Information: 
  Consignment orders are just one type of purchase order available in SAP MM Purchasing. Other types of purchase orders include standard orders, blanket orders, and contract orders. Additionally, SAP MM Purchasing also offers features such as invoice verification and payment processing.