Answer / yogesh

consignment itself a agreement which is known sa outline
agreement (it take place between firm and customar)

Answer / snz

company itself appoint an agent for selling products and
the stock is monitered by both comy and agent

Answer / sunil madhogarhia

Yes, there is always an agreement that the customer will
sell or consume the materils. Billing is done only when the
customer actually sells or consumes the materials. The
unsold goods or unused materials are our materials and the
customer can return them (if he wants). Materials may be
kept at either customer's site or our site.

Ownership of material passes only in case of :
1)Consignment Issue : from us to customer i.e. when the
customer actually sells or consumes the material.
2)Consignment Return : from customer back to us.

It does not pass in case of : Fill-up or Pick-up.

Answer / allan

I think he is asking not only consignment fill up but also
the whole consignment control. As the consignment stock
movements are under our control, MRP can control the stock
comsuption. Also when we create consignment fill up /
issue, system can check ATP.

Answer / surya

Hi Guys,

Here customer initially pays the amount.

Ex: Dealership
customer takes the dealer ship and he pays intial amount o
the company and he had some rights.

Answer / debaditya

In consignment fill up only the physical stocks are
transferred from the warehouse to the clients premises but
the ownership of the items are not transferred. Hence the
price agreement does not come to picture.

But consignment as a whole is an agreement between the buyer
and the seller.

Answer / subha

Hi All

This question relates to us in 2 ways .
Contract type for which we will have master contract
inpalce
secondly consignmentgoods are not palced with all the
customers and is given to special coustomers only and the
right of possing the goods is with the company but not the
client
Moreover we also need to understnd that at consignmentfill
there isno pricing involved but in issue we will have
pricing so ivoice isdoneto thecustomer .

Please advice !

Answer / 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?

Answer / surya

Hi Friends,

One thing in credit managment we are giving credit
limit to the customer .If the customer is regular customer
or Genuine customer we will give him him credit limit>in
consignemnt also we are doing the same thing>if the
customer is Genuine customer we will maintain stock at
customer site

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