Consignment

Consignment functionality applies if inventory ownership and storage are handled by various parties.

In case of consignment, at least one of the following situations applies:

• Supplier-owned inventory is stored at a user warehouse.
• User-owned inventory is stored at a customer warehouse.

Consignment inventory is, therefore, one of the following:

• Inventory you store that still belongs to a supplier. This type of inventory is also called consignment (not owned) inventory.
• Inventory you own that is stored and controlled by a customer. This type of inventory is also called consignment (owned) inventory.

Warehouses

You can specify a warehouse for owned consignment inventory and not-owned consignment inventory in the Warehouses (tcmcs0103s000) session based on the following warehouse types:

• Consignment (Not Owned)

  A warehouse that is used for storing not-owned consignment inventory. Not-owned consignment inventory are goods owned by a supplier but stored in your warehouse without being paid for until after the goods are used or sold. You register the goods as consignment inventory.

• Consignment (Owned)

  A warehouse that is used for storing owned consignment inventory. Owned consignment inventory are goods owned by your company and stored in a customers warehouse without receiving payment until after the goods are used or sold. You do not register the goods as consignment inventory because the goods are still part of your inventory.

You can define multiple consignment owned warehouses for one ship-to business partner. It is recommended that you apply the following rules:

• The warehouses have different addresses.
• One of the warehouses has the same address as the ship-to business partner.

Public warehousing

Public warehousing is a situation in which you pay a business partner to store your goods in their warehouse. Public warehousing also refers to a situation in which a business partner pays you to keep goods in your warehouse.