What is processing involving consignee in SAP SD - Sales and Distribution?

SAP Term: processing involving consignee

• Component: SD

• Component Name: Sales and Distribution

• Description: A procedure in the context of sales scheduling agreement processing, where the consignee can be the customer or an external service agent.

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• Key Concepts: 
  Processing involving consignee is a process in SAP Sales and Distribution (SD) that allows goods to be shipped to a customer without the customer having to pay for them upfront. The goods are shipped to the customer, but remain the property of the seller until they are paid for. This process is often used when selling goods to customers who have a long-term relationship with the seller, such as a business-to-business relationship. 
  
  How to use it: 
  In SAP SD, processing involving consignee is enabled by setting up a consignment stock in the system. This is done by creating a special stock type in the system and assigning it to the customer. Once this is done, all goods shipped to the customer will be marked as consignment stock. The customer can then take delivery of the goods and use them, but will not be charged until they are paid for. 
  
  Tips & Tricks: 
  When setting up consignment stock in SAP SD, it is important to ensure that all relevant information is entered correctly. This includes the customer’s name, address, and payment terms. It is also important to ensure that all goods shipped to the customer are marked as consignment stock in the system. 
  
  Related Information: 
  Processing involving consignee is closely related to other processes in SAP SD such as billing and delivery. It is important to understand how these processes interact with each other in order to ensure that all transactions are processed correctly. Additionally, it is important to understand how consignment stock affects inventory levels and how it can be used to manage inventory more effectively.