What is consignment goods in SAP SD - Sales and Distribution?

SAP Term: consignment goods

• Component: SD

• Component Name: Sales and Distribution

• Description: Articles of merchandise that are stored at the customer location or the warehouse of an external service agent but owned by the supplier. The customer is not obliged to pay for the goods until they remove them from the consignment stock. Usually, the customer can also return consignment goods that are not required.

Smart SAP Assistant

• Key Concepts: 
  Consignment goods are goods that are owned by the supplier, but stored at the customer’s premises. The customer does not pay for the goods until they are used or sold. The supplier is responsible for the delivery and storage of the goods, and the customer is responsible for the payment. 
  
  How to use it: 
  In SAP Sales and Distribution (SD), consignment goods can be managed using consignment fill-up (CFU) processes. CFU processes allow customers to order goods from a supplier, and then have them delivered to their premises. The customer can then use or sell the goods, and pay for them when they are used or sold. 
  
  Tips & Tricks: 
  When setting up consignment fill-up processes in SAP SD, it is important to ensure that all relevant information is entered correctly. This includes the customer’s address, the supplier’s address, and any other relevant information such as payment terms and delivery dates. 
  
  Related Information: 
  For more information on consignment fill-up processes in SAP SD, please refer to the SAP Help Portal or contact your local SAP consultant.