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Vendor Consignment Inventory setup

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We will be having consignment inventory from an international vendor in our building and that inventory needs to be available to Ship/Sales Invoice each day. However, as it's consignment, it should not be on our balance sheet as inventory until sold (then going through COGS). After the inventory is sold, we will give the vendor the information on quantities and they will invoice us for a predetermined unit price (from PO) and the quantity that is no longer there. 
 
I've seen in other forums to setup an inventory location with a separate posting setup and create a consignment inventory account with interim account to net to $0 in total. That would infer that we would receive the PO from the vendor with the inventory, then as we ship it, Recognize the COGS without having any net inventory on the balance sheet. That makes sense. As we ship, we would monthly inform the vendor the quantities and enter an invoice against the inventory used.
 
The problem i foresee is that we cannot invoice from receipted lines only partial quantities we originally received in the consignment receipt.
 
I should also mention, we'll need these inventory quantities to accurately reflect those PO unit prices (which we will know at the start), but also include some item charges (tariffs) that we will want assigned to those inventories (even though it's not our inventory)
 
Anyone come up with a solution to a similar situation? 
  • Suggested answer
    Valentin Castravet Profile Picture
    Valentin Castravet 6,203 Super User on at
    Vendor Consignment Inventory setup
    The problem i foresee is that we cannot invoice from receipted lines only partial quantities we originally received in the consignment receipt.
     
    Can you expand/clarify this? In BC you can select the quantity to invoice. 
     
  • Suggested answer
    YUN ZHU Profile Picture
    YUN ZHU 62,631 Super User on at
    Vendor Consignment Inventory setup
    Do you need to manage the quantity of Consignment Inventory in Business Central? If you don't need it, just wait until it is sold and then put it into storage. You can use the Drop Shipment feature.
    If it needs to be managed, this is a bit troublesome. Generally, it is placed in a special location, and the balance of the warehouse is calculated into a special  g/l account, but it will be displayed on your financial account anyway.
     
    Hopefully other experts can give you better advice.
     
    Thanks
    ZHU

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