consignment process doubt

[Former Member]

hi

In consignment process, any agreement wil be there between the business & customer.

regards

murali

[Former Member · Accepted solution]

hi,

Yes it is an agreement.

In the consignment stock process, a business allows stock or materials to sit at the customer’s site or allows stock that is reserved for the customer to sit at its own site. This is done through an agreement that the customer will sell or consume as many of these materials as he can. Only after the customer has consumed or sold anything will the business issue a invoice. Should the customer not want to sell or consume any more material, he informs the business and it returns their stock.

CHAN

[Lakshmipathi]

Dear Murali

What do you mean by "business"??

In general, consignment process is that the seller appoints one agent in the destination place to where the goods are being despatched to end customer. The agent has to receive the material and stock it at his warehouse.

As and when the end customer needs material, they will despatch according to the requirement and update the seller.

Thanks

G. Lakshmipathi

[former_member227476]

dear murali

there is no such agreement but

In consignment orders you are allowing the stock to sit in your customer location. Once he informs that he used the stock you will invoice him. If he returns the stock you will accept the stock to take it back

rewards if it helps

siva