What characterizes the standard customer consignment process in SAP S/4HANA Sales?

The standard customer consignment process in SAP S/4HANA Sales is characterized by sending material to the customer while continuing to value it in the delivering plant. This approach allows companies to maintain ownership of the material until the customer actually uses it, effectively keeping it as part of the inventory in the delivering plant. This is crucial for inventory management because it ensures that the company retains control over the stock and can accurately assess its available resources until the material is consumed or sold.

This method is beneficial as it allows for flexibility in the sales process, enabling the customer to access goods they may need without committing to a purchase until they actually consume the items. Consequently, this system of consignment stock ensures that cash flow remains controlled while also enabling customers to benefit from immediate access to products.

The other answer options do not accurately reflect the nature of the consignment process. Retaining ownership while it's at the customer site is an aspect that is indeed part of the process, but it is not the defining feature when considering the overall management of stock and its valuation process in this context, making the ownership part essentially secondary to the valuation process of the stock. Creating a new sales order for each shipment is not a requirement in consignment, as goods can be sent without a