Managing Consigned Inventory
Key management functions of the Customer Consignment Inventory module:
• Manage inventory quantities.
• Provide inventory valuation and update accounts.
• Defer AR transactions until consumption.
When you activate the Customer Consignment Inventory module and begin shipping, consigned inventory ownership, location, quantities, age, use, invoicing, and payment is automatically tracked.
The system does this by first identifying which sales order lines are consignment lines. The system then treats the shipment of consignment line items as an internal transfer of inventory to a predefined location.
The inventory within this location references the shipper ID in the sales order line if shippers are used. From here, inventory is visible for usage and aging analysis. Usage signals from the customer draw from the consignment balance in first-in, first-out (FIFO) order.