In consignment sales, we are using the concept of creating an location as “Consignment Location” and transferring the goods to this location tagged to a partner to maintain the customer stock count. We need to configure an internal location as “Consignment Location”. We have added a checkbox as “Consignment Location?” to mark this location as a consignment location. This is done to have the stock accounting entry created when transferring goods from consignment location. If the product has Perpetual inventory valuation. when a transfer happens from stock to consignment location. Stockin Hand account will be credited . While Stock in Consignment account will be debited.
Configuration of consignment location is as follows:
We have also configured a picking operation type as consignment transfer to transfer goods from stock to consignment location. Similarly Configuration is as follows:
Consignment transfer starts with stock transfer from stock to consignment location. This will be done as an internal transfer from above picking operation type and we will have an option to tag the customer to whom we are transferring this stock to.
We have configured an new menu in location Sales > Sales > Consignment Sales, which list all the picking operation type for consignment sales as shown below:
Please find below a screenshot of the internal transfer.
At any point of time, we can know the stock of each product by customer or by any factor from menu Inventory > Reports > Consignment Stock Report.
A sample report ;
After we transfer goods to customer location, we need to wait for the customers report. Accordingly, to know the actual products they sold from our consignment products. Based on this report, we can invoice the customer by creating a sale order. Then creating invoice and delivery order from this sale order. In sale order, we have added a new field as “Source Location” where we need to select the consignment location. So that the stock is reduce from partner consignment location instead of our main stock. Example of the sale order screenshot is given below: