Shipping consigned inventory uses the same process as shipping non‑consigned inventory. Inventory is allocated to an order either by general or detail allocations. Shippers can be created or standard sales order shipments can be used. The difference between shipping consigned and non-consigned inventory is in the booking of transaction history and accounting.

Non-consigned items are shipped to the customer using the traditional ISS-SO inventory transaction. Shipping an order updates the quantity available to invoice.

In contrast, you own consigned inventory until the customer notifies you that it is consumed. To defer the transfer of ownership, the shipment is considered an inventory transfer and uses consigned transaction types.

Instead of an ISS-SO, a consigned shipment generates the following transactions:

As shipments are made, the system transfers specified quantities, updates the sales order, and increases cumulative shipped quantities, thereby reducing MRP requirements and increasing the corresponding physical inventory accounts. Because the system updates cumulative quantities at the time of shipment, it ensures that your customer schedule correctly represents what has been shipped.

If your company uses standard allocations and shipping, use Sales Order Shipments (7.9.15) to process shipments against open sales orders. These can be positive or negative amounts.

See Processing Returns, Rejects, and Corrections.

If your company uses shippers, use Picklist/Pre-Shipper Automatic (7.9.1) to create a picklist that selects and ships inventory. When needed, you can edit the order line details before items are added to a picklist/pre-shipper. Use Pre-Shipper/Shipper Confirm (7.9.5) to generate shipment transactions. The system optionally generates an electronic ASN that can be exported to the customer using EDI eCommerce.