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Linking APO System and ERP
System 
See the documentation Cross-System Stock Transfer (intra-company-code), Linking SAP APO Systems and SAP ERP Systems, section Purpose.
A consignment process is defined for the combination of vendor/material/plant using a purchasing info record with type Consignmentin the SAP ERP system. If the vendor, material, and plant are defined in the CIF integration model, then the info record is created in SAP APO as a transportation lane with a consignment indicator.
For more information on the process flow, see the documentation Cross-System Stock in Transfer (intra-company-code), Linking SAP APO Systems and ERP Systems, section PReqs in SAP ERP and SAP APO.

When the consignment order is created, the purchase requisition is deleted in both SAP ERP and SAP APO. In SAP APO, the consignment order represents the receipt element in the ordering plant and the requirement in the supplying plant.
