Consignment
Consignment ( Latin consignatio : securitization , document ) is a legal term from materials management and describes a special form of delivery of goods . The supplier stores the goods with the buyer , the so-called consignment warehouse . The customer removes the goods from this warehouse and thus purchases the goods. The buyer reports the removal to the supplier. If the quantity falls below a certain level, the supplier refills the warehouse. The amount withdrawn is billed at regular intervals .
The invoice will be sent periodically by agreement, e.g. B. monthly. The contractual partners can agree that the customer will take over the remaining consignment stocks in his own stock after a certain period of time.
Advantages for the purchasing company:
- Opportunity to hedge logistical risks
- Exemption from warehouse management and capital commitment
- The supplier continues to bear the risk of the goods
- Release of capital through delayed transfer of ownership of consignment goods
- Stock level is zero (only buffer stocks in production)
- Increased delivery flexibility
- Reduction of process costs
Advantages for the supplier:
- Reduction of competition through single source for consignment material numbers
- Optimization of its lot sizes ( economies of scale )
- Calming down production planning (increased security of supply )
- Reduction of warehousing for the respective goods
- Reduction of the administrative effort
Legal background
In principle, a consignment transaction is a combination of various logistical processes.
- There is a delivery to yourself in the consignment warehouse.
- The transfer of ownership takes place, depending on the agreement, upon removal or only after the customer has paid for the removed amount.
- The process is completed with an invoice including (foreign) sales tax.
A withdrawal document serves as the basis for billing .
This also means that normal commercial law applies in this constellation .
International consignment within the European Union must observe further points:
- There is a delivery to yourself abroad. Such a delivery within the EU is duty-free and sales tax is not calculated in the country of origin, but must be paid there when importing into the other EU country (see import sales tax ). To do this, the exporter must have a sales tax identification number in the other country , which in some countries depends on the establishment of a branch.
- The transfer of ownership takes place again, depending on the agreement, upon removal or only after the customer has paid for the removed amount.
- The process is completed with an invoice including (foreign) sales tax.
A withdrawal document serves as the basis for billing .
See also
- Vendor managed inventory ( vendor managed inventory )
Individual evidence
- ↑ a b Regine Schluckebier: Consignment warehouse transactions and simplification regulations in the individual EU member states ; published in Der Schweizer Treuhänder 12/2000 ( available online )
