Consignment (owned) inventory
If you deliver goods to a customer under a consignment agreement, you remain the owner of the goods (acting as supplier), but the goods are stored in the customer's warehouse.
Transfer
To put own inventory in a customer's warehouse, you must create a sales order of type consignment replenishment. You can specify the sales order type in the Sales Order Types (tdsls0594m000) session. This sales order results in a warehousing order of inventory-transaction type Transfer because goods are transferred from one warehouse to another, where the receiving warehouse is a warehouse of type Consignment (Owned).
Invoicing of used consignment (owned) inventory
The customer pays for the consignment (owned) inventory at the time of use.
To get the correct balance sheet, you must create a sales order of type consignment invoicing to match the payment. You can specify the sales order type in the Sales Order Types (tdsls0594m000) session. This sales order reduces the inventory in the Consignment (Owned) warehouse, but physical shipment does not take place for this sales order. You can match the sales order of type consignment invoicing and the payment in the Accounts Receivable module.