Consignment

Its a standard concept used in all the business. Consignment is the term in which vendor will place their goods in customers place for sale. Vendors will not send invoice along with the goods. Vendor will send invoice or claim payment only when the customer sells it to consumer. Consignment is the concept in which the goods will be placed in a place but it will not be owned by the company B which owns the place. Goods will be owned by a different company A. Company B has the rights to sell it. After sold the goods company B will pay to company A as per the agreed terms and conditions.

Based on the view, the consignment is classified into 2 types:

1. Customer Consignment
2. Vendor Consignment

Based on the above paragraph, Company A will view this consignment as Customer Consignment. Company B will view this consignment as Vendor Consignment.

Customer Consignment:
Vendor will send goods to a customer's place with or without customer's PO. This stock will be handled in a special stock as 'W'. While delivering goods, vendor will not send invoice. Stocks will be still owned by vendor. Vendor will claim for the amount when the vendor consumes/sells to consumer.

Vendor Consignment:
Customer will raise purchase order with the item cateogory as 'K'. Based on that vendor will deliver goods. Customer will do goods receipt against vendor's delivery. During that time system will not post accounting document as it is still not owned by the customer. While consuming/selling, system will post the accounting document. So customer is liable to pay to vendor.

To use vendor consignment, user has to activate it through IMG -> Logistics General -> Retail Consignment Processing -> Activate Retail Consignment. Check the consignment active.