Dear Raghu
3 flaws in your understanding.
1.when business kept the stock under consignment fill-up (out of 100, stock of 50 has been sold to consumer under consignment issue--so remaining 50 stock will be with business only in sap in customer consignment stock--so your doubt of""client doesn't have any plant &storage location is not correct".
2.Transferring the stock from one customer to other customer is called INTER PARTY TRANSFERS-( In this process,after SO>del>Bill--- you have to create an entry in sap like Return order>Return delivery>Credit note--then Again Sales order for the new customer>Delivery>billing--Physically the return stock will not come back to the plant-Normally user will inter link these two Inter party transfer documents with using the Fields like Texts or PO Number in sales document header)--But this process will not be applicable for you because your parent documents are with Consignment fillup.
3.Are you sure that there was no physical plant in Mumbai??--please confirm with your client.
4.When there is No physical plant--how the Audit departments handling this(both Internal Audit department &external Audit departments)--As Suggested by Mr Lakshmipathi--need to take more info from your Client and your FI team.
Phanikumar
