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Consignment Stock delivery and sales is one of the business models that is used in different countries and certainly has its solution in SAP Business One. In this article I want to describe how it is resolved there.

First at all I want to stress that when you transfer your stock to the consignment warehouse the stock belongs to you and you must reflect that fact in your accounting and balance sheet.

That means that from accounting point of view moving stock to the consignment warehouse is the same as transfer your stock from one warehouse to another one. So, it means you need to create Inventory Transfer document in SAP Business One. You can set the specific Warehouse like a consignment entering your Business Partner to the Consignment Business Partner field:


You can select any Business Partner here: Customer, Vendor or even Lead assuming that your company can be a consignee as well.

Based on report from your consignee you can issue the sales documents: deliveries and A/R Invoices from this warehouse depending on the consignment model to your consignee or to the customers that consignee organized for you.

Running the Inventory in Warehouse Report, you can easily see the stock amount and cost allocated at your consignee:


In case you are consignee then you can define the Consignor in the same way as above.

Please, also note that the Consignment Business Partner field is available in from 10.0 FP2102.

Please, note that the consignment transactions for Russian localization have extended solution that described in the Note RU_Commission Trade.

I would like to invite you to provide feedback or ask clarifying questions regarding the topic in the comments section. It is also possible to submit the improvement requests for this feature (and others as well!) on the Customer Influence site: https://influence.sap.com/SAPBusinessOne
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