hi
Consignment is the act of consigning, which is placing a person or thing in the hand of another, but retaining ownership until the goods are sold or person is transferred. This may be done for shipping, transfer of prisoners, or for sale in a store (i.e. a consignment shop).
the material is at customers place and customer use it in portions and pays accordingly,liability of material is with vendor till
like in case of pertochem , it is been stored at refinering company premises adn the ref comp use it in portions and pays accordingly aslo the ref company get paid for the premises place
Features of consignment are:
1.The relation between the two parties is that of consignor and consignee and not that of buyer and seller
2.The consignor is entitled to receive all the expenses in connection with consignment
3.The consignee is not responsible for damage of goods during transport or any other procedure.
4.Goods are sold at the risk of consignor. The profit or loss belongs to consignor only.
in SAP consignment scenario is as follows
Consignment Info Record create with material and vendor.
Consignment Purchase Order (create with item catagery k)
Goods Receipt with movement type 101K
Consignment Stock to Own Stock,Transfer posting with
Movement type 411 k
Goods Issue to direct consuption 201K
Settlement throughu2014mrko
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