Skip to main content

Notifications

Finance | Project Operations, Human Resources, ...
Answered

Please help verify consignment process flow

(0) ShareShare
ReportReport
Posted on by 6,603
Hello:
 
My company was setup for consignment back several years ago. I was not employed with the company at the time. A user conveyed to me that they were told to follow this process for registering consignment inventory which doesn't make sense. The user was told it had to be done this way to avoid downstream /issues/. Issues were not defined to them.
 
So here it goes. When a consignment shipment is received. The inventory is put away without updating D365. What triggers the whole consignment process is receipt from our vendor of an invoice. I won't go into the details but the vendor knows when stock is consumed. At this point, we follow the normal consignment process. We create a replenishment order and receive it, but only for the amount on the invoice. We transfer ownership from the vendor to our company and post the journal. If you're thinking we don't know our true inventory levels with this process, you'd be right. 
 
Regardless, are there any scenarios which may explain why our user may have been told to follow the process above? It totally seems counter-intuitive to have consignment work this way, or any inventory management work this way.
 
Thanks!
  • bankk Profile Picture
    bankk 6,603 on at
    Please help verify consignment process flow
    Thank you Andre and Hana. I appreciate your confirmation of my understanding of this process, and thank you also for the added resources. 
  • Verified answer
    Hana Xue Profile Picture
    Hana Xue Microsoft Employee on at
    Please help verify consignment process flow
    Hi KBanh,
    About the consignment process:
    • First, the retailer manually creates a consignment replenishment order. (For a consignment replenishment order, you can view Consignment Inventory: Create Consignment Replenishment Order (instructorbrandon.com))
    • vendors should know how to deliver.
    • Once the inventory is delivered and arrives from the vendor to the retailer, the consignment replenishment order is updated.
    • The vendor can then monitor updates to the physical on-hand inventory.
    • use an Inventory Ownership Change Journal.
    • the vendor should monitor the consumption of the Products Received from Consignment Inventory Page.
    • Finally, payment is made to the vendor according to the used, consumed, or sold goods.
    For more details, you can check the link below:
    Understanding Inventory Consignment Process in Dynamics 365 (instructorbrandon.com)

    Best Regards,
    Hana

  • Verified answer
    André Arnaud de Calavon Profile Picture
    André Arnaud de Cal... 292,160 Super User 2025 Season 1 on at
    Please help verify consignment process flow
    Hi KBanh,
     
    You are correct that your current process is not ideal. A few years ago, Microsoft added the option to support the consignment process. You can read more on Microsoft Learn and in a blog from Henrik Marx Larsen.
    The goods will then be received in your warehouse, but with another Owner tracking dimension, until you transfer the ownership and ship the goods to your customer.
     
     

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Announcing Our 2025 Season 1 Super Users!

A new season of Super Users has arrived, and we are so grateful for the daily…

Vahid Ghafarpour – Community Spotlight

We are excited to recognize Vahid Ghafarpour as our February 2025 Community…

Congratulations to the January Top 10 leaders!

Check out the January community rock stars...

Leaderboard

#1
André Arnaud de Calavon Profile Picture

André Arnaud de Cal... 292,160 Super User 2025 Season 1

#2
Martin Dráb Profile Picture

Martin Dráb 230,962 Most Valuable Professional

#3
nmaenpaa Profile Picture

nmaenpaa 101,156

Leaderboard

Product updates

Dynamics 365 release plans