Supplier Consignment (2LG)

Supplier Consignment (2LG)

By using the consignment process for procurement, the supplier provides the material and stores it at site of the procuring party. The supplier maintains the legal owner of the material until it is withdrawn from the consignment stores. Payment for consignment stock is only required in case the material is withdrawn. For this reason, the supplier is informed of withdrawals of consignment stock on a regular basis.

Key Process Steps Covered

  • Manage purchase orders
  • Manage goods receipts
  • Manage stock
  • Settle consignment

Benefits

  • Store supplier goods at own warehouse
  • Access goods at any time
  • Hold billing process until the goods are withdrawn from the warehouse
  • Return goods to the supplier if they are not needed
  • Streamline procurement processes in an efficient and cost-effective manner
  • Ensure highly automated processes
  • Reduce manual effort greatly
  • View analytical list page: Monitor purchase order items

Where is Supplier Consignment(2LG) being used?

This Scope item is used in the following way:

  • As a core function of Operational Procurement within Sourcing and Procurement Scope Item Group
  • As a management function of Invoice Management within Sourcing and Procurement Scope Item Group
  • As a core function of Inventory within Supply Chain Scope Item Group

Process flow of Supplier Consignment (2LG)

Find below the process flow of the scope item Supplier Consignment as it is defined for release s4h-2021.


Download Process Flow of Best Practice scenario Supplier Consignment (2LG) - S/4HANA OP
Ref: Supply Chain of SAP S4H-2021
Best Practices related to S/4HANA*1) Yearly Updates are released per September of each year
*2) The Quarterly updates are released per Februari, May, August and November
Details of future releases can be found in the SAP Roadmap section of each product. Go to SAP Roadmap Product Finder.
Knowledge Center Scheer Nederland | The Process Experts Visit also the SAP Cloud ERP knowledge center of Scheer Netherlands. The following topics are covered:
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