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Hermanv

Partial Invoice of a Shipment - Consignment Stock

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Good day Everyone

The question is regarding invoicing of Consignment stock to Customers.  In a normal circumstances we would be looking at using Consignment sites for specific customers to control stock levels and usage.

The clientI am dealing with do have an agreement with the Customers that ownership is transferred at the point of Shipment.

As per IFRS15 the cost and full revenue needs to be recognized at the point of transfer of ownership. Manipulating the GL postings on the Automatic journals were easy to do BUT the problem is with performing a partial invoice for the usage using the original Shipment as reference. In this type of Sale the rule not allowing the Invoice qty to be changed does not apply as per normal expected sales process.

Any ideas how I can handle these scenarios as hundreds of consignment sites also becomes unmanageable.

Any suggestions will be highly appreciated

Kind regards

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    If the customers agreed that the ownership is transferred at the shipment, how this flow differs from a normal sales order? Usually consignment stock is used when the stock is shipped but the ownership is really transferred later when the customer consumes the stock.

    In a 'normal' consignment stock (on the sales module) context, I would set a dummy site (related to the sales company) to ensure the stock is still valued after shipment (because the ownership is not transferred yet), then create one location per customer for the consignment stock.

    Upon the "inter-site'" shipment you will print the shipment note and all papers needed for the transport but then you will received the stock on the dummy site in the location related to the customer. (to avoid managing 2 transactions, you can use the intersite transfer instead).

    Then the customer will report the exact quantity consumed and at that point you will create the shipment linked to the actual customer with the same quantity to initiate the invoicing process.

    Note: This solution can be adjusted to simplify the process. For instance, you can simplify the solution by managing a unique site for the actual stock and consignment stock and setup warehouse (group of location) to separate both stocks but then the shipment notes and all transport documents should be printed from a location change.

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