In a vendor consignment process, the supplier (vendor) retains ownership of the materials even after they are delivered to the buyer's premises. The transfer of ownership, and the corresponding financial liability for the buyer, occurs only when the materials are withdrawn from the special consignment stock. This withdrawal is recorded in the SAP system in two primary ways: by directly consuming the stock (e.g., issuing it to a production order or cost center) or by explicitly transferring the stock from the vendor-owned consignment category to the company's own valuated stock.

A. Invoice from the customer is received by supplier.

This is incorrect. Invoicing is a result of the ownership transfer, not the trigger. The supplier invoices the customer after the goods have been consumed.

B. Goods receipt for consignment stock is posted.

This is incorrect. Posting a goods receipt for consignment stock only acknowledges the physical receipt of materials; they are placed in non-valuated, vendor-owned stock.

1. SAP S/4HANA Documentation - SAP Help Portal

"Consignment":

"The vendor makes material available at your site. The material is still owned by the vendor. The material only becomes the property of your company when you withdraw it from consignment stock. A withdrawal can be a goods issue to a cost center or a transfer posting to your company's own stock." This statement directly supports that both consumption (C) and transfer posting (D) change ownership.

2. SAP S/4HANA Documentation - SAP Help Portal

"Goods Receipt for Consignment Stock":

"When you post the goods receipt

the consignment stock of the material increases. The material is managed as part of your inventory but remains the property of the vendor. Since the material still belongs to the vendor

the goods receipt is not valuated." This confirms that the initial goods receipt (B) does not transfer ownership.

3. SAP Learning Hub

Course S4500 (Sourcing and Procurement in SAP S/4HANA)

Unit: Special Procurement Processes:

The course material outlines the consignment process flow

explicitly stating that liability and ownership transfer occur upon "Goods Issue from Consignment Stock" or "Transfer Posting from Consignment to Own Stock." The settlement process (related to invoicing

A) is a subsequent step performed periodically (e.g.

using transaction MRKO) based on these consumption postings.