Consignment Process
Definition:
The consignment process allows companies to provide goods to customers.
Instead, ownership remains with the supplier until the customer consumes or sells the goods.
Unsold goods can be returned to the vendor.
Process:
a) Consignment Fill up:
Goods are sent to the customer, but ownership is retained by the company.
The stock will be reduced from unrestricted stock and added to consignment stock.
b) Consignment Issue:
When the customer sold the goods, the stock will be reduced from consignment stock.
c) Consignment Return:
If the customer returns unsold goods, the stock will be added back to consignment stock.
d) Consignment Pick up:
If request to take back the consignment stock, then we do consignment pick up.
The stock will reduce from consignment stock and added back to unrestricted stock.
Example:
Scenario:
