SAP SD Sales and Distribution in Plain English Detailed

10th question of the day: Choose the right statement for consignment sales in SAP SD or S4HANA for all modules

In consignment sales, ownership of goods is transferred from the seller to the buyer but legal title remains with the seller until certain conditions are met. Here are some key points and a statement to consider:

• The seller retains title to the goods until the agreed-upon conditions (such as payment terms) are fulfilled.
• The buyer has possession of the goods but is responsible for their care and disposal.
• The seller remains liable for the goods until ownership transfers.
• Consignment sales are often used when the buyer lacks the capital to purchase goods outright or when both parties have an interest in preserving the goods' condition.

The correct statement that encapsulates these points is: "In consignment sales, the legal title of the goods remains with the seller until the agreed-upon conditions are met, at which point ownership and control of the goods transfer to the buyer."