Consignment Settlement: Account Movements
When you settle consignment withdrawals, the liabilities created on withdrawal are 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 or pipeline information record.
You manage material A of vendor X as consignment stock at a price of $ 10 per piece. When 100 pieces are withdrawn for consumption, the system makes the following postings when the withdrawal is settled:
|
Withdrawal |
Consignment Settlement | |
Consumption account |
1000 + |
|
Liabilities from consignment stores |
1000 - |
1000 + |
Vendor account |
1150 - | |
Tax account |
150 + |
When the system posts to the liabilities account, it generates the allocation number automatically from the material document number and the item number both during the withdrawal itself and during settlement. This enables the open items to be cleared in Financial Accounting.