I have a vendor who is willing to offer products on consignment to us.
Basically he provides the products to stock our shelves with no payment made. We agree on a purchase price if they sell, and then we pay him based on what sells at the agreed price. If any stock does not sell or partial stock only sells then he takes back whatever did not sell. The stock can be on our shelves for about 30-90 days.
How would I set something like this up in erpnext?
Make Purchase Receipt to receive the products from supplier, but don’t make any Purchase Invoice entry. And use Batch no to track the products. Then as normally make Delivery Note and Sales Invoice as part of Sales process. Then after 30-90 days, check the Batch balance from “Batchwise Stock Balance History” report. And make “Purchase Return” entry for the remaining stock. And for sold products make “Purchase Invoice” entry against the Purchase Receipt and after making “STOP” the PR.
purchase receipt will book inventory to the company which is not as expected.normally, for this vendor consignment case, there should be 2 stock entries, one for non valuated receive, the 2nd for transfer from first received stock,this time stock should be valuated, invoice should base on this.