SAP Sales and Distribution Certification Practice Exam

Which statement about consignment fill-up is correct?

1. Material becomes customer property after goods issue

2. Material remains in the valuated stock of the delivering plant

3. Consignment fill-up is relevant for billing

4. Movement type is defined in the item category of outbound delivery

The correct answer is: Material remains in the valuated stock of the delivering plant

The correct statement regarding consignment fill-up is that material remains in the valuated stock of the delivering plant. In a consignment fill-up scenario, although the goods are delivered to the customer, ownership of the material does not transfer to the customer until the customer uses or sells the goods. As a result, the material is still accounted for in the inventory of the delivering plant and remains under the control of the supplier until it is consumed or sold by the customer. This characteristic is crucial as it allows the supplier to retain ownership and manage stock levels even after the physical transfer of goods. Other aspects, such as the billing relevance of consignment fill-ups, are also noteworthy. In this arrangement, billing does not occur at the point of fill-up, but rather when the customer actually consumes or sells the consignment stock. Therefore, the billing is associated with the transfer of ownership rather than the initial delivery, contrasting the statement about billing relevance. Additionally, the movement type in a consignment fill-up is determined by specific configurations in the system and is not strictly defined by the item category of the outbound delivery. Each of these points highlights the unique nature of consignment stock versus regular stock processes in SAP's sales and distribution module.