In consignment fill up we delivery goods to customer site, is there any agrement with customer? if yes what type of agreement(relating price)?if no with out agrement how can we place crores of amount to customer site?
It is possible that the customer provides us the place with or without any formal agreement. Ideally, this will depend on the actual business scenario & the possible benefit of the customer being logistic & vailablity of stock as & when required.
Consignment stock is merchandise which is stored at the customer location but which is owned by your company. The customer is not obliged to pay for the merchandise until they remove it from consignment stock. The customer can usually return consignment stock which is unused.
Since consignment stock still forms part of your valuated stock, you must manage this stock in your system. However, consignment stock must be:
Managed separately from the rest of your stock so that you are aware of the stock which is stored at the customer location
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