Consignment stock is merchandise which is stored at the customer location but which is owned by your company. The customer is not obliged to pay for the merchandise until they remove it from consignment stock. The customer can usually return consignment stock which is unused.

Since consignment stock still forms part of your valuated stock, you must manage this stock in your system. However, consignment stock must be:

• Managed separately from the rest of your stock so that you are aware of the stock which is stored at the customer location

• Managed separately for each customer

From SAP Retail’s point of view, the issuing of consignment stock is treated as a special kind of sales order, using special sales order types.