Consignment
Consignment in SD covers the four-step process (fill-up, issue, pick-up, returns) used when a vendor's stock is stored at a customer site but remains vendor-owned until consumed. This topic explains the business rationale, special stock valuation, master data setup, document types, item categories, schedule lines, and the integration touchpoints with MM inventory management and FI billing that make consignment distinct from standard order-to-cash.
Overview
Consignment in SD covers the four-step process (fill-up, issue, pick-up, returns) used when a vendor's stock is stored at a customer site but remains vendor-owned until consumed. This topic explains the business rationale, special stock valuation, master data setup, document types, item categories, schedule lines, and the integration touchpoints with MM inventory management and FI billing that make consignment distinct from standard order-to-cash.
Lessons in this topic
- Configuring Consignment Document Types, Item Categories, and Stock DeterminationDetails how consignment order types, item categories, schedule line categories, and special stock valuation are configured and linked together to drive correct document flow and inventory postings.
- Consignment Special Stock Valuation, MM Integration and Period-End ReconciliationUnderstand how consignment stock at the customer (special stock indicator W) is valuated, how MM and FI integration works for goods movements, and how to reconcile consignment stock and billing during period-end close.
- Consignment Process Fundamentals: Why Vendor-Owned Stock at Customer Sites MattersIntroduces the business case for consignment stock, the four standard consignment process steps, and how ownership and valuation differ from a normal sales order flow.
Interview questions covered
- From an architecture standpoint, how does the availability check and requirements transfer differ for consignment fill-up versus consignment issue processes, and why must this distinction be preserved in configuration?
- A customer receives consignment fill-up stock, later some is issued and some returned unused. How does copy control across the consignment process (fill-up, issue, pick-up, returns) ensure correct stock and billing treatment?
- For consignment fill-up processing, how do incompletion procedures help ensure special stock and pricing fields are properly captured before the document can proceed to delivery?
- A client reports that consignment fill-up orders are creating billing documents, which should not happen, while consignment issue orders are not reducing customer special stock correctly. How would you diagnose and resolve this?