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In the Consignment Process in Consignment Issue (CI)
transaction if the customer has consumed some goods from the
consignment stock how does the company know about this?
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Answer Posted / imran
When an agreement is made with a customer for consignment process, certain conditions are to be met by the concerned parties. One of the item is reporting the stock of the materials (which are lying at the customer site as consignment goods) at regular intervals by the customer to the Company (Vendor).
As you mentioned if the consignee sells the products and inform the company (vendor) after 1year, it is considered as violation of the consignment agreement, which leads to legal proceedings.
Depending on the volume or quantity or value of the products involved in the consignment process, the Vendor (supplier) sends some one to the customer site to check the inventory. This is happening in real scenario.
You may also know that evey product has shelf life also, so if the customer is not able to consume the product it must be returned to the Vendor.
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