What document is created after the settlement of vendor consignment stock?

The creation of an invoice after the settlement of vendor consignment stock is a significant part of the procurement process in SAP S/4HANA. In the consignment scenario, the vendor retains ownership of the goods until they are consumed or used by the purchasing company. When the stock is settled, it means that the company has taken ownership of the consignment stock for which it needs to pay the vendor.

At this stage, an invoice is generated to formalize the transaction, reflecting the amount payable to the supplier for the stock that has transitioned from consignment to usage. This invoice serves as a financial document that not only authorizes the payment to the vendor but also triggers any necessary financial postings in the system.

The other options represent different types of documents that do not align with the process of settling consignment stock. A credit memo typically indicates a return or a reduction in the invoice amount, which is not applicable here. A goods issue document records the physical movement of goods out of inventory but is not specifically tied to the financial transaction of settling consignment stock. A material consumption entry may track the usage of materials but again does not create a formal obligation to pay the vendor, which is the purpose of the invoice.