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

SAP Term: consignment stock processing

• Component: SD

• Component Name: Sales and Distribution

• Description: A stock-keeping procedure that offers various advantages. Consignment goods are physically located at the customer location or at the warehouse of an external service agent. This enables the customer or external service agent to quickly access the goods, while billing only takes place at goods issue. The consignment stock is managed in the supplier system, because the supplier retains ownership of the consignment goods until goods issue.

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• Key Concepts: 
  Consignment stock processing is a feature of SAP Sales and Distribution (SD) that allows customers to store goods at their own premises, while the vendor retains ownership of the goods. The customer can then use the goods as needed and only pay for them when they are consumed. This process is often used in industries such as chemicals, pharmaceuticals, and food and beverage. 
  
  How to Use It: 
  In SAP SD, consignment stock processing is enabled by setting up a special customer account type called a “consignment account”. This account type allows the vendor to maintain ownership of the goods while allowing the customer to use them as needed. The vendor can then invoice the customer for the goods when they are consumed. 
  
  Tips & Tricks: 
  When setting up a consignment account in SAP SD, it is important to ensure that all relevant information is entered correctly. This includes the customer’s address, contact information, payment terms, and any other relevant details. Additionally, it is important to ensure that all relevant documents such as invoices and delivery notes are created accurately. 
  
  Related Information: 
  For more information on consignment stock processing in SAP SD, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_ERP_SD/6.0/en-US/f9f8d7a2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b3e14c8a9f7d3e2b