Customer Consignment (1IU)

In this scenario, the goods are initially posted to the customer consignment stock and thus remain the property of the company (consignment fill-up).

At regular intervals, the customer reports how many articles are sold and how many articles are in the current stock (inventory). When the inventory is performed, the batch number may be entered to do a correct material posting. A corresponding sales order is entered that documents the issue from the customer consignment, meaning that the goods are no longer the property of the company (consignment issue).

Goods that are not required can be returned from the consignment stock to the central warehouse. The goods must not be defective. They are posted directly into the free stock (consignment pick-up).

In some cases, goods are returned to the customer consignment stock (by its own customer or based on erroneous consumption posting) after the consignment issue has already taken place. A return order is then created (consignment return).

Key Process Steps Covered

• Fill up the consignment stock assigned to the customer (consignment fill-up)
• Issue from the consignment stock (consignment issue)
• Return materials from the external customer consignment stock to the company warehouse (consignment pick-up)
• Return order to the consignment stock (consignment return)

Benefits

• Save costs on inventory for consignor
• Restock as it sells – beneficial for both parties
• Save time for consignor
• Use the consignment stock to generate product exposure (especially new or unknown products) for their customers

Where is Customer Consignment(1IU) being used?

This Scope item is used in the following way:

• As a core function of Order and Contract Management within Sales Scope Item Group

Process flow of Customer Consignment (1IU)

• Best Practices of SAP S/4HANA On Premise *1
• Best Practices of SAP S/4HANA Cloud *2
• Best Practices of SAP Analytics Cloud *2
• Best Practices of Robotics Process Automation(RPA) with SAP Leonardo *2

• RISE with SAP
• SAP S/4HANA Cloud
• SAP on Azure
• Business Process Management