What is required to track customer consumption of consignment stock?

To effectively track customer consumption of consignment stock, utilizing a dedicated sales order type is essential. In the context of consignment stock, companies maintain ownership of inventory until it is consumed by the customer, at which point it is sold.

A dedicated sales order type specifically designed for consignment scenarios enables the business to differentiate these transactions from standard sales orders. This allows organizations to effectively manage and report on the consumption of consignment stock, ensuring accurate inventory levels and accounting entries. By using this tailored sales order type, the data flow and tracking of inventory consumed by the customer are streamlined, facilitating better sales processes and financial planning.

While other options like a contract agreement, a specific pricing strategy, and a revised delivery schedule may have their roles in the sales process, they do not directly address the need for tracking consumption as effectively as a dedicated sales order type does.