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Consignment Vendor inventory in Microsoft Dynamics 365 Finance and Operations

Rahul Mohta

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Wondering to manage vendor owned consignment inventory in D365FO?

The key feature in consignment is ownership change of inventory and using vendor inventory without any ledger impact.

Steps involved:

Setup consignment agreement	Define material and vendor specifications
consignment replenishment order	To register incoming vendor material and posting product receipt. Inventory tracking dimension 'OWNER' for specified vendor
On-hand inventory	Only physical on-hand inventory impacted and no GL impact
Reserve Consignment inventory	Reserve consignment inventory to use
Change inventory ownership before consumption	Could use production picking list to consume vend inventory after ownership change is executed