Overview

The consignment sales scenario defines the process flow related to provision of goods to the customer for subsequent sale to third parties.

In rare cases, the goods may be consumed by the customer. This option is the O2C Sales via vendor-managed inventory scenario alternative.

The consignment sales scenario begins with filling up the customer's warehouse with our goods. The ownership of the consignment stock remains on the company side until the goods are sold or consumed.

The contract usually specifies how frequent consignment goods sales notifications shall be sent. Based on the consumption information received from the customer, actual sales are recognized and invoiced.

The customer normally monitors stock levels and initiates replenishment.