Note that in consignment fillup and consignment pickup there are no invoices since

there is no change of ownership for the materials.

How to perform a consignment order?
In consignment orders you are allowing the stock to sit in your customer location.
Once he informs that he used the stock you will invoice him. If he returns the stock
you will accept the stock to take it back.
It is defined in 4 steps.
1. Consignment fill up:
Sales document type is KB
Item category KBN
shedule line category E1
In this step, you are not invoicing the customer. document flow is sales order ---delivery item category. It will not be relevent for billing and pricing because you are
not charging money for these goods in this step.
In schedule line category, you will set movement type 631 & set for availability check
and TOR.
2. Consignment Issue.
Once the customer informed you that he used all the goods or partial goods then you
will create consignment issue for used goods.
Sales document: KE
Item category: KEN
shedule line category: C0 or C1
Here you are invoicing the customer(because he used the goods). you are assigning
the delivery documnt and billing document to the sales document.
In item category, you are setting relevent for billing, pricing, special stock.
In schedule line category, your setting is 633 movement type, relevent for availability
check & TOR.

3. Consignment Return:
Customer found that some goods are damaged or he not able to sold the goods he
want to send it back. that you are creating this document.
Sales document type: KR
Item category: KRN
Shedule line category: D0
You will assign delivery document and billing to sales document. you will create
return order, return delivery, return billing.
Your setting item category relevent for billing, returns, pricing, special stock.
Your setting schedule line item category: 634 movement type, NO availability NO
TOR.
4. Consignment Pick up:
Even if you create the consignment return the goods are not come to direct to your
plant. For that you need to create consignment pick up. here the owner ship is not
changing so you do not need to create billing.
Assign retrun delivery to sales document type.
Sales document: KA
Item category: KAN
schedule line category: F0 & F1
Your setting item category relevent for returns. any shedule line category relevent for
632 movement type, MRP, availability check, delivery.
Now you check your plant stock. Stock will increase.