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Consignment Stock handling

started a topic about 1 month ago

Hello Dear,

We're enjoying the co-manufacturing functionality. Related-but-different problem: Consignment stock from a customer.


We sometimes have to incorporate components that have been paid for by our customer.

  • There is never a tax invoice generated
  • These components do not belong to us until we use them in an operation
  • They should not be on our balance sheet in Xero
  • We still need to consume the components and ask the customer to re-order when stock gets down to a certain level.
So far we've been using a separate warehouse and then our bookkeeper has been manually correcting our accounts. This is not ideal for the reasons above.


Are you able to implement a consignment stock workflow where the Dear subscriber is the consignee? SKUs (or a batch of product with a certain SKU) would need to be identified as 'Consignment' but stored in the same warehouse (or a special warehouse that does not need a movement order) to be consumed in a production process, and then have some way to prompt the customer to reorder at a certain stock level.


Not a straightforward workflow - trying to think of the best way to describe it to your dev team?

  •  Hello Matt,


    I hope you are doing great.


    Could you please specify the following:


    1. What is the preferrable method of adding consignment stock: stock adjustment or purchase order with 0 cost for component?

    2. Should the cost of added components be zero to avoid discrepancies on balance sheet?

    3. What document should be generated to order components from customer . Can we use purchase order and mark it as Complete on stock receiving?


    Looking forward to hearing from you soon.


    Best regards,

    Elena 


  • Hi Elena,

    Thanks for the rapid response.


    I think a PO with zero cost would be good, better than a stock adjustment as it reflects the fact that more stock has been requested (rather than an inaccuracy corrected).


    Components should be zero value on the balance sheet.


    PO template would be good, if we could use a custom format with 'stock request' or similar that would be better but if that needs a lot of work I'd say let's use the PO for now and if other users have ideas for improvement it can be tweaked later?



    Matt

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