Hi, 

We have a supplier who will ship us certain amounts of inventory for us to hold as consignment. Sometimes, they request that we use the material to produce a finished good for them. We're wondering if there is a better way to handle this than what we're doing now: 

1. Issue PO for Product "Raw Material-Consignment" at 0$
2. Receive the material into stock when it arrives physically
3. If we need to consume the material, we misc. issue the "Raw Material-Consignment" stock out,
4. Then, we create a PO at the actual price amount for the material cost, and receive in the actual product number "Raw Material" which is listed on our BOMs
5. The material can then be consumed as normal

I worry about the traceability and multiple product numbers being in play with the current strategy. 

Any help is appreciated. 

Thank you.