Consignment stock

Consignment stock

Consignment stock is stock legally owned by one party, but held by another.

Contents

Ownership

Ownership of consignment stock is passed only when the stock is used (issued). Unused stock in a warehouse may be returned to the supplier.

Accounting

As ownership of consignment stock is not transferred until use, invoicing is not immediate. To account for a replenishment of consignment stock at a customer site, a manufacturer must credit inventory and debit customer consignment stock. Only after a customer actually uses the consignment stock may an accounts payable be created.

See also

External links


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • consignment stock — Stock held by one party (the dealer) but legally owned by another; the dealer has the right to sell the stock or to return it unsold to its legal owner. Because it can be difficult to distinguish between the commercial realities of the… …   Big dictionary of business and management

  • consignment stock — Stock held by one party (the dealer) but legally owned by another; the dealer has the right to sell the stock or to return it unsold to its legal owner. It is sometimes difficult to distinguish between the commercial realities of the transaction… …   Accounting dictionary

  • Consignment agreement — A consignment agreement is an agreement between a consignee and consignor for the storage, transfer, sale or resale and use of the commodity. The consignee may take goods from the consignment stock for use or resale subject to payment to the… …   Wikipedia

  • consignment invoice — ➔ invoice1 * * * consignment invoice UK US noun [C] ► COMMERCE an invoice for goods that is sent to a person or company that is not the owner but that is responsible for selling the goods or returning them to the owner if they are not sold: »In… …   Financial and business terms

  • consignment — (1) (adj.) Goods or inventory that are held by a selling agent, wholesaler, or reseller until the goods are either sold or returned to the seller. (2) (v.) The physical transfer of goods from a seller/consignor who retains title to a consignee… …   Financial and business terms

  • Stock car (rail) — In railroad terminology, a stock car is a type of rolling stock used for carrying livestock (not carcasses) to market. A traditional stock car resembles a boxcar with slats missing in the car s side (and sometimes end) for the purpose of… …   Wikipedia

  • Inventory — means a list compiled for some formal purpose, such as the details of an estate going to probate, or the contents of a house let furnished. This remains the prime meaning in British English.[1] In the USA and Canada the term has developed from a… …   Wikipedia

  • Vendor-managed inventory — (VMI) is a family of business models in which the buyer of a product provides certain information to a supplier of that product and the supplier takes full responsibility for maintaining an agreed inventory of the material, usually at the buyer s …   Wikipedia

  • off-balance-sheet finance — OBSF A method of financing a company s activities so that some or all of the finance and the corresponding assets do not appear on the balance sheet of the company. By making use of OBSF a company can enhance its accounting ratios, such as the… …   Accounting dictionary

  • off-balance-sheet finance — OBSF A method of financing a company s activities so that some or all of the finance and the corresponding assets do not appear on the balance sheet of the company. By making use of OBSF a company can enhance its accounting ratios, such as the… …   Big dictionary of business and management

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”