Wikipedia:
consignment stock
Consignment stock is stock legally owned by one party, but held by another.
Ownership
Ownership of consignment stock is passed only when the stock is used (issued). Unused stock in a warehouse may be returned to the manufacturer.
Accounting
As ownership of consignment stock is not transferred until use, invoicing is not immediate. To account for a replenishment of consignment stock at a customer site, a manufacturer must credit inventory and debit customer consignment stock. Only after a customer actually uses the consignment stock may an accounts payable be created.
See also
- Manufacturing
- Distribution
- Logistics, Transportation
- Just in time
- Vendor-managed inventory
- Scan-based trading
External links
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