What is consignment stock in SAP SBO - SAP Business One?

SAP Term: consignment stock

• Component: SBO

• Component Name: SAP Business One

• Description: Goods or materials belonging to a vendor that are retained at a warehouse or at a customer location. The vendor retains ownership of the goods until they are withdrawn from the consignment stores and the appropriate payments have been made by the customer.

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• Key Concepts: 
  Consignment stock is a type of inventory that is owned by a vendor, but stored at the customer’s premises. The customer pays for the goods only when they are used or sold. This type of inventory is beneficial for both the vendor and the customer, as it allows the vendor to maintain control over their inventory while providing the customer with access to goods without having to pay for them upfront. 
  
  How to use it: 
  In SAP Business One, consignment stock can be managed using the Inventory Management module. This module allows users to track and manage consignment stock, including setting up consignment agreements, tracking stock movements, and managing invoices. Additionally, users can set up alerts to notify them when consignment stock levels are low or when an agreement needs to be renewed. 
  
  Tips & Tricks: 
  When setting up consignment agreements in SAP Business One, it is important to ensure that all relevant information is included in the agreement. This includes details such as the duration of the agreement, payment terms, and any restrictions on the use of the consignment stock. Additionally, it is important to ensure that all parties involved in the agreement are aware of their responsibilities and obligations. 
  
  Related Information: 
  For more information on managing consignment stock in SAP Business One, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_BUSINESS_ONE/9.3/en-US/f8d7f2b7a6e14c8a9f3d2b5f1e4d7c2a.html