Difference between consignment and subcontract

[Former Member]

hi,

Could anybody tell me what is the difference between consignment and subcontract?

Thanks a lot!

[Former Member · Accepted solution]

Dear Lauliu,

Under Consignment - there are vendor consignment and customer consignment categories.

Vendor consignment:In consignment processing, the vendor provides materials and stores them on your premises. The vendor remains the legal owner of the material until you withdraw materials from the consignment stores. Only then does the vendor require payment. The invoice is due at set periods of time, for example, monthly. In addition, you can also arrange with the vendor that you take over ownership of the remaining consignment material after a certain period of time.

http://help.sap.com/erp2005_ehp_05/helpdata/EN/4d/2b8f4c43ad11d189410000e829fbbd/frameset.htm

http://help.sap.com/erp2005_ehp_05/helpdata/EN/c6/af3c415e5dde2be10000000a1550b0/frameset.htm

Customer Consignment: http://help.sap.com/bestpractices/BBLibrary/HTML/J58_CustConsProc_EN_KO.htm

Sub-contracting: this can be operation sub-contracting/External Processing and product sub-contracting.

Regards

Mangalraj.S