Costing and Accounting for Consigned Inventory

If you use the inbound consignment inventory option, a supplier can place goods at your location, but payment is not due until you sell or use the goods.

When you receive a consigned item into inventory, the quantities are tracked but no accounting is performed. The liability is not recognized until the consigned receipt is consumed. Consumption transactions and any subsequent transactions are costed and accounting entries are created. Consumption transactions for consigned items include:

• Transfer from a non-owned location to an owned location.

• Shipping/Issue or Express Issue.

• Adjustment.

• Physical accounting adjustment.

• Stock used as a component in a PeopleSoft Manufacturing production order.

• Stock issued to a work order in PeopleSoft Maintenance Management.