In SAP SD consignment processing, which item category is used for a consignment issue when the customer takes goods out of consignment stock?

Introduction / Context:
Consignment processing in SAP SD is a special type of sales process in which goods are stored at the customer's location but remain the property of the vendor until the customer actually consumes or sells them. SAP supports this process with several dedicated item categories that distinguish between filling consignment stock, issuing goods from consignment, returning them, and picking them up. Knowing the correct item category for each consignment scenario is important for both configuration and day to day operations. This question asks specifically about the item category used for a consignment issue, when the customer takes goods out of consignment stock.

Given Data / Assumptions:
- We are working with SAP SD consignment processes.
- Typical consignment document types include consignment fill-up, issue, return, and pick-up.
- Standard item categories include KBN, KEN, KRN, and KAN, each mapped to a different consignment step.
- The question focuses on which item category is used when goods are issued from consignment stock to the customer (consignment issue).

Concept / Approach:
SAP provides four main item categories for consignment processing:
- KBN for consignment fill-up, where stock is sent to the customer's location but ownership does not transfer yet.
- KEN for consignment issue, where the customer consumes or sells the goods, causing ownership to transfer and revenue to be recognised.
- KRN for consignment return, where goods previously issued from consignment are returned by the customer.
- KAN for consignment pick-up, where unused consignment stock is taken back by the vendor.
The consignment issue is the step that triggers billing and reduces consignment stock. Therefore, the item category for that step is KEN.

Step-by-Step Solution:
Step 1: Recall the four basic consignment processes in SAP SD: fill-up, issue, return, and pick-up. Step 2: Match each process to its standard document and item category: KBN for fill-up, KEN for issue, KRN for return, and KAN for pick-up. Step 3: Focus on the consignment issue, which is the moment when goods are removed from consignment stock and billed to the customer. Step 4: Recognise that KEN is the standard SAP item category used for this consignment issue step. Step 5: Confirm that the other item categories correspond to different consignment scenarios and therefore cannot be correct for an issue.

Verification / Alternative check:
In an SAP training or test system, you can create consignment documents and inspect the item categories used. For a consignment fill-up, the sales document type often uses item category KBN. When you later create a consignment issue to bill consumed stock, the system uses item category KEN. Consignment returns and pick-ups use KRN and KAN, respectively. SAP documentation and configuration (for example, in item category determination settings) also list these mappings. This evidence confirms that KEN is the correct item category for consignment issue.

Why Other Options Are Wrong:
Option A (KAN) is wrong because KAN is used for consignment pick-up, where the vendor takes unused consignment stock back from the customer, not for issuing goods out of consignment to the customer. Option B (KRN) is incorrect since KRN is used for consignment returns, the opposite of an issue, when the customer sends goods back. Option D (KBN) is wrong because KBN is used for consignment fill-up, where stock is initially moved into consignment without being sold or consumed.

Common Pitfalls:
A common pitfall is to mix up the consignment item categories because their codes are similar. Students sometimes remember that all consignment item categories start with K but forget which one belongs to which process. Another mistake is to think that the same item category is reused for multiple consignment steps, which would lead to incorrect postings and confusion in reporting. To avoid these issues, it helps to memorise a simple mapping: KBN = fill-up, KEN = issue, KRN = return, KAN = pick-up, and to remember that consignment issue (KEN) is the step that triggers billing and ownership transfer.

Final Answer:
The correct answer is KEN, used for consignment issue when goods are withdrawn from consignment stock, because KEN is the standard SAP item category assigned to the document type that records the consumption of consignment stock and triggers billing to the customer.