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ConsignmentSales/Functional Specification Document


Functional Specification: Consignment Sales Management

Section 1: Overview & Justification


Consignment sales is a form of business in which, as a service to the customer (Eg. A Retail Store), the company or vendor maintains a stock of their materials at a customer’s location. The company or vendor retains ownership of the materials until they are withdrawn from the consignment stores. The customer is only charged for product once it is reported as used.

Section 2: Users & Business process description

User goals

In trading arrangement, Consignment sales play a vital role in placing any material in the hand of another. Business process flow in Consignment Sales consists of four major parts. They are

Consignment Fill-up

The core functionality of Consignment Fillup explains that the stocks replenished at the customer site is neither accounted for invoicing nor pricing because the goods remain the property of company. The steps involved in Consignment Fill up are

Consignment Fill-up Order

It’s a request from the customer through the sales representative of the company based on the demand of the product in market. So this process doesn’t involve any invoicing or pricing of the product.

Consignment Fill-up Delivery

After the company has received a fill up order either from customer or through sales representative, the company shall deliver the goods at the customer site based on current stock. Even after the goods have been delivered, the company will retain the ownership until it is sold.

Consignment Issue

Consignment issue involves & explains the significant process of selling the goods. It enables the customer to sell the product from the stock available in their warehouse. This business transaction is relevant for billing from company to customer because the customer has sold the goods.

Consignment Return

Consignment Return enables the customer to return the goods into the consignment stock that were literally sold. After consignment Issue, if customer finds any defects or any discrepancies they can return the product to consignment stock. This transaction is relevant for billing since the customer receives a credit for the returned goods.

Consignment Pick-up

After the products have been sold, the remaining consignment goods has to be returned back to company warehouse.The steps involved in consignment Pick-up are

Consignment Pick-up Order

Based on products not utilized at customer location, Sales representative or some other in-charge person will place a pickup order.

Consignment Pick-up Delivery

Based on pickup order,the person in charge, from company takes the remaining products from customer location and stores it in the warehouse of the company.

Consignment Stock Update

After the process of pick up delivery, the details about the consignment goods in the customer location shall be updated in the system. Consignment Stock Update , provides this option. It lets to update the stock details in the customer location via an excel file.This file provides a list of products and their respective quantities that are available at the customer location. Using the information just provided, the quantity loss, if any, is calculated.

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