Since ownership of the deposit stock is not transferred until after use, billing is not immediate. To account for the replenishment of the consignment stock on a customer site, a producer must credit the stock and debit the debitor deposit stock. It is only when a customer actually uses the deposit stock that a stock of receivables can be built up. The consignment stock is a legitimate stock, legally held by one party, but held by another party, which means that the risk and rewards for that stock remain in the first part, while the second part is responsible for distribution or retail. [1] [2] As part of a stock depositing relationship, the supplier assures the company that inventory of an item is available between the agreed minimum and the agreed ceiling and is stored near the company`s point of use. The company does not own or pay for the stock until it is consumed or sold. In this way, the supplier immediately has information on the consumption of the item, which facilitates the continuous upgrading of stocks. This provides the company with some protection against fluctuations in demand by ensuring that stocks are always available, while better informing the supplier of the consumption of the item. Ownership of the consignment stock is only passed on if the stock is used (issued or sold in the case of a store). Unused inventory can be returned to the supplier if they are standard products.

Product return agreements should be negotiated with customer-specific items. 19.2.1. You can provide as many days after each sale for payment. This is usually too heavy when it comes to large quantities of fast-moving warehouses. 13.1.1. These documents are subject to your examination and inspection rights. (see section 20 below) 13.1.2. If possible, the recipient`s records should be kept in the same format as the records you keep for your own stock. Describe your registration procedures and/or present your standard formats. 13.1.3. It is likely that your registration procedures are on the computer.

If so, identify your hardware platform, operating system and application software for inventory control. Sending into international trade is a variant of the open account payment method, in which payment is sent to the exporter only after the goods have been sold to the final customer by the foreign merchant[1]. An international shipping operation is based on a contractual agreement in which the foreign trader receives, manages and sells the goods for the exporter who retains ownership of the goods until they are sold. Payment to the exporter is only required for items sold. One of the most common uses of export shipping is the sale of heavy machinery and equipment, because the foreign distributor generally needs soil models and inventory for sale. Goods that are not sold after an agreed period of time may be returned at a loss to the exporter. Exporting to shipping is very risky, as no payment is guaranteed to the exporter and a person who decides to control the exporter is effectively in possession of his inventory. However, on-air sales may offer the exporter some major advantages that are not obvious at first glance. For example, shipping can help exporters compete on the basis of better availability and faster delivery of goods when stored near the end customer. It can also help exporters reduce direct storage and inventory management costs, the way sales prices in the local market are maintained.