Using the Customer Consignment Inventory module, invoicing is deferred until some or all of the shipped inventory has been consumed by the customer. An invoice is not created until the customer acknowledges consumption.

Until consumption, GL transactions occur to track the value of inventory during the time it is held in consignment status. The system uses the customer consigned inventory accounts (In-Transit, Consigned, or Offset) specified in Inventory Account Maintenance (1.2.13). If not available there, the system uses the customer consignment accounts specified in Product Line Maintenance (1.2.1).

When an inventory quantity is transferred to a predefined in-transit or consignment location, only shipment-related costs are posted to the corresponding in-transit account or to the consigned inventory account of the ship-from location.

Once a usage transaction (CN-USE, ISS-SO) occurs, a standard invoice for the consumed inventory is available to be posted, printed, and sent to the customer. The system generates invoice numbers. If shipment-related charges have previously been posted and printed, only inventory charges and taxes are shown on the invoice at this time.

See Set Up Consignment Accounts.