SAP Sales and Distribution Certification Practice Exam

What is the correct statement regarding consignment fill-up?

1. The material remains in the valuated stock of the delivering plant even after the consignment fill-up

2. Corresponding material becomes property of the customer after goods issue

3. The consignment fill-up is irrelevant for billing

4. A particular movement type is defined in outbound delivery's item category

The correct answer is: The material remains in the valuated stock of the delivering plant even after the consignment fill-up

The statement regarding consignment fill-up that is accurate is that the material remains in the valuated stock of the delivering plant even after the consignment fill-up. This means that although the goods are physically with the customer, they are still considered part of the stock of the delivering plant in terms of inventory valuation and management. In a consignment scenario, the delivering plant retains ownership of the material until it has been formally consumed or sold by the customer. When a consignment fill-up occurs, the goods are delivered to the customer, but the financial responsibility and valuation aspects remain with the delivering plant until the customer performs a goods issue, effectively transferring ownership. As a result, it is crucial for inventory management to keep track of such items in a way that reflects their ownership status. The other statements do not accurately describe the concept of consignment fill-up. For instance, ownership transfer to the customer does not occur until a goods issue is processed, meaning that the material is not immediately considered the customer's property after the fill-up. Additionally, while consignment fill-ups certainly play a role in the overall billing process, they are not considered irrelevant; they influence when and how billing occurs for the goods used by the customer. Lastly, while specific movement types exist for