Posting: Consignment and Pipeline Settlement 
Posting: Consignment and Pipeline Settlement
Consignment
You manage material A from your vendor as consignment stock at a
consignment price of $10/piece.Goods Withdrawal
When you withdraw 100 pieces for consumption, the system makes a posting to the consumption account based on the consignment price. The offsetting entry is made to the account Liabilities from consignment stock.
Consignment and Pipeline Settlement
When the consignment withdrawals are settled, the liability created at the time of the withdrawal is cleared. The offsetting entry is posted to the vendor account.
The system determines which taxes are to be posted for each item from the consignment info record or pipeline info record.
When the system makes postings to the liabilities account, be they for withdrawals or for settlements, it creates the allocation number automatically from the material document number, so that the open items in Financial Accounting can be cleared.