Use

Consignment goods are goods that are stored at your company site but belong to a vendor. The vendor makes the goods available to you but does not invoice them right away. The goods are invoiced at a previously agreed-upon consignment price once you have withdrawn them from storage.

Features

Consignment stock is not subject to valuation in your company. When you transfer consignment stock to company-owned stock, the quantity transferred is valuated as follows:

Transfer posting value = quantity transferred x consignment price

The transfer posting value is posted to the material's stock account and the offsetting entry is made to the "Payables from consignment stores" account. This account is cleared by Invoice Verification when the consignment withdrawal is settled.

If the consignment price differs from the material price, the transfer posting leads to price differences. Depending on the type of price control, these differences are posted to the stock account (price control V ) or to an "Expense/income from consignment withdrawal" account (price control S ).