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

SAP Term: consignment stock

• Component: SD

• Component Name: Sales and Distribution

• Description: Goods or materials that belong to the supplier but are stored at the customer location or the warehouse of an external service agent and still form part of the supplier’s valuated inventory, to be managed in their system.

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• Key Concepts: 
  Consignment stock is a type of inventory that is owned by the supplier, 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 commonly used in industries such as automotive, chemicals, and pharmaceuticals. 
  
  How to use it: 
  In SAP Sales and Distribution (SD), consignment stock is managed using the Consignment Fill-Up (CFU) process. This process involves creating a consignment fill-up order, which is then used to transfer the goods from the supplier to the customer. The customer can then use the goods as needed and pay for them when they are used or sold. 
  
  Tips & Tricks: 
  When creating a consignment fill-up order, it is important to ensure that all relevant information is included in the order, such as the quantity of goods being transferred and the delivery date. Additionally, it is important to ensure that all relevant taxes and duties are taken into account when creating the order. 
  
  Related Information: 
  For more information on consignment stock in SAP SD, please refer to SAP Help documentation on Consignment Fill-Up (CFU). Additionally, there are several online resources available that provide detailed information on how to use consignment stock in SAP SD.