What is consignment stock?

Consignment stock is stock that is held by a retailer to sell, but is owned by the supplier until it is sold from the retailer. The retailer does not purchase the stock from the supplier until the retailer has sold it to a customer. 

Stock that is not sold by the retailer can be returned to the supplier, without requiring a credit as the retailer had not initially purchased it. 

There are two types of consignment stock:

• Consignee: is the retailer business or person that holds the consigned stock for sale and acts as the consignor’s agent in selling that stock.
• Consignor: is the supplier of the consignment stock.

How to handle consignment stock in Unleashed

Create a Consignee Warehouse for consignment stock

Create a warehouse specific to the Consignor (retailer), to separate your standard inventory from the consignment stock. Use the Stock on Hand Enquiry to periodically review both consignment stock and your available inventory on a per warehouse basis. 

1. From the main menu, go to Settings, System and select Warehouses. 
   
   
2. Select Add Warehouse and create a retailer specific warehouse, providing your Consignor's address details and Save. 

Manage consignment stock using Warehouse Transfers

When consignment stock is delivered to the Consignee, complete a Warehouse Transfer to reflect the stock movement in your inventory. Transferring the stock will allow you to differentiate your available stock from consignment stock and manage your inventory accordingly.

1. From the main menu, select Inventory and Transaction, then select Warehouse Transfers.
   
   
2. Click on Add, then complete the Warehouse Transfer's details:
   
   • Source: Your main warehouse, where stock is coming from.
   • Destination: The Consignee's warehouse that you have created for the retailer. 
   • Transfer Lines: The *Product and *Quantity being transferred to the Consignor
     
     
3. Complete the Warehouse Transfer and your stock on hand will update to show the transferred quantity is now held in the Consignee warehouse. 

When unsold consignment stock is returned from the Consignee, complete another Warehouse Transfer to add the returned stock to your main warehouse's inventory. For a returning Warehouse Transfer, ensure the details are as follows:

• Source: The Consignee's warehouse, where stock is being returned from. 
• Destination: The warehouse stock is returning to. 
• Transfer Lines: The *Product and *Quantity being returned from the Consignee.

Manage sold consignment stock

When the Consignee (retailer) sells consignment stock, complete a Sales Order from the Consignee's warehouse to reflect it in your Unleashed account. You can review the Consignee's sales using the Margin Enquiry and Invoice Enquiry reports. 

1. From the main menu, select Sales, Orders and click on Add Sales Order.
   
   
2. Enter the customer details on the Sales Order.
   Tip: Create a single "Consignee" customer to attribute all Consignee sales to. In the Consignee's customer record set a Default Warehouse to auto-populate the Consignee's warehouse when creating a Sales Order. For more details, see Add Customer.
   
   
3. Ensure the Sales Order has the Consignee warehouse in the Order Warehouse drop down field and add the sold products', quantities and prices to the Sales Order's order lines, then Complete. 
   
   
4. The Sales Order's shipment will remove the sold units from the Consignee warehouse's stock on hand the sale will be available for reporting.