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Friday, October 26, 2007

Consignment Stock

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.

30 comments:

David Q said...

I am also wondering how you smoothly handle consignment in Microsoft Dynamics. Any suggestions or solutions since you posted this?
dbquick@umich.edu

Dilip said...

Hi David, Good to know about you. Yes, we had developed some consignment customization in AX since it's not directly out of the box available. We did customize some of the transfer journals in AX to achieve this and some other master setups on Inventory. Do let me know your email. I will elaborate a bit more detail into the topic.

Anonymous said...

Hi Dilip, we are currently also looking into how we can handle consignment stock in AX. If you could send be some details on joab@hempel.com it would be a great help.
Thanks in advance.
Jonas Boye

Anonymous said...

Hello Dilip, I am also in the same situation with consignment inventory and MS Dynamics. Currently it is a tedious and labor intensive process. If you have some kind of solution I would be very interested in speaking with you about it. Please email me at sean@select-technology.net. Thanks!

Anonymous said...

Dilip, I am also investigating how to implement consignment stock in Dynamics AX and would love to hear any input that you have. My e-mail address is slehren@firstsolar.com.

Thanks.

Anonymous said...

What kind of customization is needed if you need to create Purchase order when transferring inventory out of a vendor consignment warehouse? My email address is kiengan@hotmail.com. Thank you!

Josete said...

Hi Dilip
I'm trying to set up Consignment stock too, with transfer journals and then mark trnasactions, but it isnt't easy to develop
If you could send be some info in order to solve this proccess, my email addess is josetemt@gmail.com

Thank you

Anonymous said...

Hello Dilip, I am also interested in learning more about how you handle consignment stock in AX. In our case we are the consignee. Thanks for your efforts. neils@pcvirtuoso.com

P.S. It looks like this is a popular subject, how about writing another blog with more details, it may be easier than answering numberous requests. Thanks again....

Anonymous said...

Hi,
I'm also interested in how you solved this issue. I'd appreciate if you could send me some more information on lhj@no.columbusit.com

Thanks in advance
Lars

Anonymous said...

Hello Dilip, I am also in the same situation with one of my customer with consignment inventory and MS Dynamics, RCM and we are selling the consignment inventory from point of sale. If you have some kind of solution I would be very interested in speaking with you about it. Please email me at akh@ae.columbusit.com. Thanks!

Anonymous said...

Any idea regarding consignment sale in Ms Dynamics AX. Please let me know at my address mtopdar@vsnl.net

Anonymous said...

Hi,
Please let me know more about your solution for consignment stock management.
E-mail: rikard.sundberg@logica.com

shimrit said...

Hi Dilip,

We are also in a need for a solution with consignment warehouse.
Could you please E-Mail us more details to : ssnapir@prodware.fr

Thanks,

Shimrit S.

Inventory Management Software said...

Thanks for sharing your post and it was superb .I would like to hear more from you in future too.

Prashant said...

Hi Dilip, we are currently looking into how we can handle consignment stock in AX. I would really appreciate if you can help me on this. My email id is prashant.middha@hotail.com
Thanks.

Prashant said...

Hi Dilip, we are currently looking into how we can handle consignment stock in AX. I would really appreciate if you can help me on this. My email id is prashant.middha@hotail.com
Thanks.

EthanongAX2009 said...

Hi Dilip, I need detail information how to treat consignment stocks for inter company. Parent (owner and trading of FG) is the consignor and subsidiary is consignee (provide labour/manufacturing services). Is there anyway we can view parallel movements pertaining to the inventories?

Anonymous said...

Hi, it seem interesting too, could you send me more in detail on how to manage it, m email is joel.wwk@yahoo.com.hk

Anonymous said...

Hi joel, I think you are the last one to get information regarding consignment, please share the information you know regarding consignment. My mail Id is crazyzone92@gmail.com...It would be a great help.

Anonymous said...

Hi joel, I think you are the last one to get information regarding consignment, please share the information you know regarding consignment. My mail Id is crazyzone92@gmail.com...It would be a great help.

Jianxin Zhang said...

For consignment to customer, since it is just the nature to transfer inventory from local w/h to oversea or customer w/h, we have customized AX Inventory transfer feature to be consignment shipment with shipping document.
How about supplier consignment? eg take in inventory from vendor without purchasing, and sell to customer or ship to oversea w/h, only when billed customer, then issue PO to vendor. what I think of is just to issue PO, take in inventory but don't issue supplier invoice, in this way, system will not take in financial value until sold out and issued supplier invoice. any other better way to handle the supplier consignment flow? thanks.
JX (email me @ zhjx9(@yahoo.com.sg)

Sander said...

Hi Dilip,
I know that the article was posted 3 years ago. If you still have some notes with regards to dealing with consigned materials in AX I would be very interested to receive a copy. My email address is nzsander@gmail.com.
Thanks,
Sander

Anonymous said...

Hi Dilip,
Please send customization required for enabling Consignment handling.
Mabdulaleem@outlook.com

Thanks in advance,
Regards,
Mohammed1720 oursurch

Anonymous said...

Hi Dilip, we are also currently looking into how we can handle consignment stock in AX. I would really appreciate if you can help me on this and share information in details on my email id rkumar.it@gmail.com

Chall enged said...


Thanks for the interesting topic for this site, every minute i keep on updated on this.

Easy consignment

carl sun said...



It is very nice.I am very interested in it.Thanks for your sharing.

Easy consignment LLC

Anonymous said...

Hi Dilip,
We are still on AX 2009 and are now looking at setting up Supplier consigment stock. I would really appreciate if you could send me some information about this to svenljungacilla@hotmail.com. Thanks in advance!
Cecilia

Anonymous said...

Hi Dilip,

this sounds really interesting. Can you send me some details about this via email. danijel.vucic@sycor.de

Thanks

Danijel

Pei Lisa said...

Hi Dilip,

Can share with me your idea on the consignment handling in AX?

my email is holy_w1ngs@yahoo.com

Aditi Sharma said...

Hi Dilip,

I would be very interested to know your customization solution. Kindly provide more information at aditi.sharma99@gmail.com

Thanks,
Aditi