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

SAP Term: consignment issue

• Component: SD

• Component Name: Sales and Distribution

• Description: A sales document that is used when the customer takes consignment goods from the consignment stock to sell or use them. Consignment issue involves removing the goods from the special stock and making it the property of the customer. In sales scheduling agreement processing, the customer takes the consignment goods first and only then the system creates a consignment issue.

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• Key Concepts: 
  Consignment issue is a process in SAP Sales and Distribution (SD) that allows a company to issue goods to a customer without transferring ownership. The goods remain the property of the company until they are consumed or sold by the customer. The company is then invoiced for the goods when they are consumed or sold. 
  
  How to use it: 
  In SAP SD, consignment issue is used when a company wants to provide goods to a customer without transferring ownership. The company will create a consignment issue document, which will include details such as the customer, the goods being issued, and the quantity of each item. The document will also include any special instructions for the customer, such as how to return the goods if they are not consumed or sold. Once the document is created, it can be sent to the customer for approval. Once approved, the goods can be shipped to the customer and invoiced when they are consumed or sold. 
  
  Tips & Tricks: 
  When creating a consignment issue document, it is important to include all relevant information such as special instructions for the customer and any discounts that may apply. It is also important to ensure that all items being issued are accurately listed in the document. 
  
  Related Information: 
  Consignment issue is related to other processes in SAP SD such as consignment fill-up and consignment return. Consignment fill-up is used when a company needs to replenish its stock of goods at a customer’s location, while consignment return is used when a customer returns goods that were previously issued on consignment.