AugTool Documentation
Consignment Stock
Consignment stock refers to the stock involved in a special business arrangement whereby a Consignor (i.e a vendor/supplier) agrees to provide products to a Consignee (for example, a retail store) for sale, without the Consignee having to pay for the goods upfront. So Consignment stock is stock legally owned by one party, but held by another and the risk and rewards regarding the stock remains with the consignor while the consignee is responsible for distribution or retail operations.
Hence the Consignee does not own the stock as ownership passes straight from the Consignor to the Consignee's customers once the Consignee sells the stock. The Consignee makes payment to the Consignor when the Consignee sells the goods.
Consignment Stock Movements
a) Consignment Stock:
As Consignment Stock is not owned by the Consignee it will not form part of ordinary stock in the books of the Consignee. Therefore Consignment Stock is accounted for separately. In Augtool, when Consignment Stock is received it is shown separately under Consignment Stock. This document also takes into account all Consignment Stock onHolds and onOrders and shows you what's available in the warehouse after taking these into account.
By clicking on a consignment item you will be able to view more detailed information of that item. Here you will be able to view the last 10 stock movements and consignment usages and be able to drill down to the source documents. You will also be able to make adjustments to Consignment stock should need be.
b) Consignment Stock Usages:
Consignment Stock Usage makes reconciling easier. It allows you to keep track of the goods sold to clients as well as keep track of which of these deliveries have been accounted for with the Consignor, via purchase invoices. So status 'unallocated' means that you have not done the purchase invoice yet and status 'allocated' would mean that you have. It shows you the Delivery Note numbers and Purchase Invoice numbers and allows you to drill down to these documents for added convenience.
It also displays the CPA number of the Consignment pricing agreement for the applicable delivery note.
Consignment Pricing Agreement (CPA)
a) Consignment Pricing Agreement:
The Consignment Price Agreement (CPA) is usually for a set quantity at a set price for a set period. Augtool allows creation of the Consignment Price Agreement in both base or foreign currency.
As prices can fluctuate, and in order for the Consignee to be able to price the goods profitably, Consignment Price Agreements (CPA) are put in place. This safeguards the Consignee and as stock should also not be held for too long by the Consignee, this also safeguards the Consignor.
The CPA in Augtool shows you how much of this specific CPA has 'On Holds' as well as 'Allocated' amounts which includes Delivered goods and Onholds linked to this CPA. It therefore shows you the units available on the CPA after taking these into account. You will also be able to get a quick overview here as the CPA also shows you how much of the allocated units has been Purchase Invoiced.
CPA References Editable after period close: This document can only be edited after the Processing lock in the Business Unit and does not get limited by the Financial Lock.
CPA Number Change on Sales Invoice
You are now able to change the CPA number on a sales invoice after it's posted. If the sales invoice is edited and posted prior to a delivery note then the newly created delivery notes will use the new CPA no, per the sales invoice that has been edited.
However if the Delivery Note is done before the sales invoice then any change to the CPA number on the sales invoice will not affect the delivery note that have been previously created.
b): Reports - Consignment Pricing Agreements
The Report for Consignment Pricing Agreement allows you to see on the list view, the Consignment items and the quantities of those items that are currently in the warehouse. It also shows you the applicable Consignment Pricing Agreements with the OnHolds, Allocated and Invoiced quantities and the Available units on the CPA after taking the allocated units into account. The drill down function enables you to view the source documents quickly and easily.
