A form of business in which a vendor (external supplier) maintains an inventory of materials with a customer (buyer)
Location.
The supplier retains ownership of the materials until they are removed from the consignment warehouse.
Payment for consignment stock is only required when the material is withdrawn for use. For this reason, the
the supplier is regularly informed about withdrawals from the consignment warehouse.
SAP Business One supports both consignment warehouses and third-party orders. These functions make it possible to correctly map special goods movement processes in the warehouse and procurement logic - including financial processing in the background.
Consignment store:
A consignment warehouse is a storage location where goods are stored that are physically located in the company but (still) owned by the supplier. SAP Business One allows you to manage such stock separately from regular stock.
System integration:
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Bearing definition: Consignment warehouses are defined in the system via warehouse management. Can be found under:
Administration → Definition → Warehouse management → Warehouse → "Accounting" tab. -
G/L account determination per warehouse: Specific G/L accounts can be stored in the warehouse definition for consignment warehouses. This applies in particular to stock, reconciliation or liability accounts.
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Reconciliation accounts: In connection with consignment goods, reconciliation accounts (e.g. payables or receivables accounts) are often used to correctly record the accounting effects of the provision of goods.
Drop shipment (Drop Shipment):
In drop shipments, the goods are delivered directly from the supplier to the customer - without intermediate storage in the company's own warehouse. SAP Business One maps this process and enables precise control of procurement and delivery without physical goods receipt in the company's own warehouse.
Practical relevance:
Both functions - consignment warehouse and drop shipments - increase flexibility in materials management and enable the integration of special business models into the standard ERP system. At the same time, they ensure that accounting and stock movements are mapped transparently and correctly.
Versino Financial Suite
the Versino Financial Suite makes consignment in SAP Business One more secure, transparent and efficient: Consignment stocks are clearly recorded separately, all postings are automated and correct, processes are seamlessly integrated and documented in an audit-proof manner. This saves time, reduces errors and facilitates collaboration with accounting, audits and tax consultants.
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