How to do consignment in Navision

NAVTECHUSER
NAVTECHUSER Member Posts: 4
edited 2008-05-15 in NAV/Navision Classic Client
Anyone care to help..please...

Here's the scenario:

Vendor XYZ consigns all his items at 0 price to any of his customers.

Vendor XYZ treats these already as Sales thus he uses the Sales Order document but at 0 price since he does not like to maintain it anymore as his assets and would not like to maintain a lot of stocks in the warehouse.

Once shipped or sent to the customer site, inventory must be deducted right away and GL account must be affected as well since this is already treated sold but in 0 price.

These items can stay longer in the customer site. Vendor XYZ does counting of inventory in random basis. Vendor will issue Debit Note each time the Customer sell or there is a difference in the original quantity of consigned goods.

The last scenario is to return this consigned goods to their inventory.


Please note that the Vendor would not like to maintain the item in the inventory and would like to treat the consigned goods as sold even at 0 cost but would acknowledge only the real price only when there is an actual goods that was sold.


Hope to here from anyone. Thanks, appreciate it.

Comments

  • Deep
    Deep Member Posts: 569
    Once the sale order is shipped, the inventory is removed from the location and cannot be traced post sale.

    If you want you can use transfer orders to ship the goods to the consignee.

    Then you can easily use sales orders to post the sales done by consignee from the location where the goods have been transferred.
    Regards,

    Deep
    India
  • CindyPret
    CindyPret Member Posts: 15
    Hi,

    At our company we use a Sales Order and only ship the inventory. but the order, shipment and item ledger entry are flagged as consignment. Only when the customer sells the stock do we invoice the customer. This has the effect that since it is only shipped an expected cost is posted and when the invoice is generated the acutal cost is posted.

    Our inventory setup is also set to do Expected Cost posting

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