Answer Posted / tarun

YES CONSIGNMENT PROCESS IS ITSELF A AGREEMENT BETWEEN CUSTOMER AND COMPANY.
PLEASE GO THROUGH DETAIL CONSIGNMENT PROCESS:
DUMPING THE STOCK AT CUSTOMER PLACE AND KEEPING OWNERSHIP WITH COMPANY. DELIVER THE GOODS TO THE CUSTOMER WITHOUT RAISING INVOICE, WHEN OUR CUSTOMER SALE THE GOODS TO END CUSTOMER THEN WE (COMPANY) TRANSFER THE OWNERSHIP TO OUR CUSTOMER AND RAISE INVOICE TO OUR CUSTOMER.

CONSIGNMENT PROCESS CLASSIFIED INTO 4 TYPES-

1. CONSIGNMENT FILLUP: IT IS JUST DUMPING THE STOCK AT CUSTOMER PLACE WITHOUT TRANSFERRING OWNERSHIP & WITHOUT RAISING INVOICE.
PROCESS FLOW: CF -> DELIVERY -> PROFORMA INVOICE.
EFFECT:
STOCK WILL REDUCE FROM INVENTORY AND ADDED TO CONSIGNMENT STOCK OF CUSTOMER.
NO INVENTORY A/C DOCUMENTUMENT GENERATED SO NOT RELEVANT FOR INVOICE BUT RELEVANT FOR DELIVERY BECAUSE OF PHYSICAL MOVEMENT OF MATERIAL.

2. CONSIGNMENT ISSUE: WHEN OUR CUSTOMER SOLD THE CONSIGNMENT STOCK THEN WE DO CONSIGNMENT ISSUE PROCESS FOR TRANSFERRING THE OWNERSHIP TO OUR CUSTOMER & RAISE THE INVOICE TO OUR CUSTOMER. RELEVANT FOR INVOICE & DELIVERY.
PROCESS FLOW: CI -> DELIVERY -> INVOICE.
EFFECT:
STOCK WILL REDUCE FROM CONSIGNMENT STOCK'S OF CUSTOMER.
INVENTORY A/C DOCUMENT GENREATED: COGS A/C DEBIT TO INVENTORY A/C CREDIT.

3. CONSIGNMENT RETURN: IF END USER RETURN THE GOODS TO OUR CUSTOMER THEN OUR CUSTOMER INFORM THE SAME TO COMPANY THEN COMPANY DO CONSIGNMENT RETURN PROCESS. IT IS RELEVANT FOR RETURN DELIVERY & RETURN INVOICE.
PROCESS FLOW: CONR -> RETURN DELIVERY -> RETURN INVOICE.
EFFECT: IT WILL ADD THE STOCK TO CUSTOMER CONSIGNMENT STOCK.
INVENTORY A/C DOCUMENT GENRATED - INVENTORY A/C DEBIT TO COGS A/C CREDIT.

4. CONSIGNMENT PICKUP: IF OUR CUSTOMER REQUEST TO TAKE BACK THE CONSIGNMENT STOCK THEN WE DO CONSIGNMENT PICK UP PROCESS. RELEVANT FOR RETURN DELIVERY, NOT RELEVANT FOR INVOICE.
PROCESS FLOW: CP -> RETURN DELIVERY.
EFFECT: STOCK WILL REDUCE FROM CONSIGNMENT STOCK AND ADDED TO UNRISTRICTED STOCK.
NO INVENTORY A/C DOCUMENT GENERATED.

CAN ANY ONE TELL ME WHICH CONSIGNMENT PROCESS IS RELEVANT FOR AVAILABLITY CHECK?

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