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Author's profile photo Isabel Sanchez

Customer consignment process S/4HANA 2020

In Consignment Process the products are stored at the customer location, but the owner of this product is still company. Customer stores the consignment stock at their own warehouse. Customer can consume product from warehouse at any time and customer billed for product for quantity consumes.


Here is the process flow:


n Customer Consignment Process, there are four main steps within the SAP System, all of which support separate management of stock:

1.Consignment Fill-Up (Stock Fill up at warehouse)

2.Consignment Issue (Stock issue from warehouse)

3.Consignment Return (Stock return from customer)

4.Consignment Pickup (Stock return to manufacture)


For every part of the process, the steps are always these:

1.Create Consignment fill up using VA01

2.Confirm quantity delivered VA02

3.Outbound Delivery using VL01N

4.Perform picking, packing and Goods issue using VL02N


Issued invoice (VF01) is created only for Consignment issue.


A summary for all the steps is as follows:

Sales Process Sales Document Type Item Category Movement Type Accounting Document
Consignment Fill Up KB KBN 631 No
Consignment Issue KE KEN 633 Yes
Consignment Return KR KRN 634 Yes
Consignment Pick Up KA KAN 632 No


Videos with examples:


Fill up:



Pick up:


For reference, the video done in SIT Fortaleza that speaks about all these processes and steps is


You can download the presentation here:


I hope you enjoyed!

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      Author's profile photo Anandh Kannusamy
      Anandh Kannusamy

      Hi Isabel Sanchez

      Thanks for writing this blog.

      Please inform us where can we download the presentation deck you delivered in SIT Fortaleza.



      Author's profile photo Isabel Sanchez
      Isabel Sanchez
      Blog Post Author

      Hello K Arandh,


      I added the link to the presentation at the end of this blog. It was posted on LinkedIn and you can download it.


      Thank you,




      Author's profile photo JaeWoo Yoo
      JaeWoo Yoo


      It does help a lot !


      Author's profile photo Robert Forster
      Robert Forster


      nice overview.

      Stable ERP process 🙂

      No complication list 😉

      Author's profile photo Isabel Sanchez
      Isabel Sanchez
      Blog Post Author

      No no, that is the point: The standard SAP tcodes and processes cover all these steps.

      Author's profile photo DICKSON JIN

      Hello Isabel Sanchez, thanks a lot for your blog.


      You are appreciated if you can provide some SAP system demo in this blog. This can help us to clearly understanding for this process.

      Author's profile photo Isabel Sanchez
      Isabel Sanchez
      Blog Post Author

      Hello YuLin,

      The links for the demos and videos on Youtube are already included in the blog.




      Author's profile photo DICKSON JIN

      OK. got it.

      Thanks a lot.

      Author's profile photo Agamemnon Varonos
      Agamemnon Varonos

      Hello Isabel,

      Thanks for this. Happy New Year btw.

      In the slides as well as in the graphic you provided above, the Consignor / Consignee relation is inverted. The goods flow from the Consignor (i.e., the company running SAP) to the Consignee, namely the Customer who acts keeps the goods in his own premises / workhouse etc. Should you care to swap the Consignee / Consignor along with their description at the top, this blog will reach perfection!



      Author's profile photo Christian Rosa
      Christian Rosa

      Dear Isabel

      Thank you for sharing. This is very valuable information and it helps a lot.

      All the best,



      Author's profile photo Vincent Jayet
      Vincent Jayet

      Hello Isabel,

      For the scenario sap Consignment Returns KR process, could you precise if you make the customer billing document in reference of the consignement order return (KR) or in reference of the delivery ?

      In my system, I used the standard keys (i.e. order KR and delivery LR and invoice RE) and I was surprised to see that I was not able to create the customer invoice in reference of the delivery ; system requires the sales order !

      Some more details about my flow : we are in an inter-company process and we also create an internal credit note.

      Thank you !


      Author's profile photo Shailendu Verma
      Shailendu Verma

      Amazing Tutorial. There is one I created as well out here 

      It has some practical examples on consignment process in SAP SD.