Q).In the SAP SD module, how is consignment processed?

Answer:

Consignment stock is stock which is stored locally at the customer's site and is dedicated for his use only. The standard transaction flow uses a fill-up document type KB, which follows the move of stock into the customer's site. Once the customer consumes the stock, he moves the stock via a document type KE, which moves the stock out of his storage, and an invoice may be issued to the consignment holder by the company. In case any stock is damaged, the customer can return the materials into his storage using document type KR. A credit note for returns may be issued by the company. At the completion of the consignment period, the company may pick up the unconsumed or damaged stock via document type KA. While answering questions which ask for how a particular task is executed in SAP, it is important that interviewee mentions the standard document types that are used.