Consignment Stock is one of the functionality for which we need to customize Dynamics AX. I'm working on such a requirement right now. Some key terms in Consignment business which I have come across:
A. Consignment Stock: Consignment stock by definition is a marketing arrangement whereby physical control of merchandise but not title, is transferred from one business (the Consignor) to another (the Consignee). The title to the goods or ownership remains that of the consignor until the goods are sold by the consignee.
B. Consignor: The consignor is person/vendor/business/supplier who sends the stock.
C. Consignee: The consignee is the person/customer who receives the stock.
D. Consignment Fill-Up: A consignment fill-up does not completely represent a real physical sale of goods to a customer. When you ship consignment stock to the customer, you record the transaction by creating a consignment fill-up order. The transaction is not relevant for pricing since the consignment stock remains the property of your company.
E. Consignment Pick-Up: The customer can return goods that are not required or sold to the central warehouse. They are posted directly into unrestricted stock.
F. Consignment Issue: At regular intervals, the customer reports either how many articles they have sold, or how many articles are in their current stock (inventory). When the goods issue is posted, the transfer from consignment stock is carried out. The article is no longer the property of the company. The relevant accounting and controlling documents are generated.
G. Consignment Return: Consignment returns are used for when your customer wants to return goods to the consignment stock. The transaction is relevant for billing. In this case, the customer receives a credit memo for the returned goods.