Managing Consignment Stock in Odoo Inventory

Consignment Stock Management in Odoo#

In a consignment arrangement, the vendor retains ownership of inventory stored in your warehouse. You pay only when you consume the stock - not when it arrives. Odoo can track consignment stock ownership separately from your own inventory.

Consignment Stock Approach in Odoo#

Odoo doesn't have a dedicated "consignment" module in the standard edition, but the workflow is achievable through a combination of:

1. Separate consignment location (to segregate owned vs. consigned stock)
2. Receipts without valuation (stock arrives but no accounting entry)
3. Vendor bill on consumption (bill generated when stock is used)

Step 1 - Create a Consignment Location#

Inventory → Configuration → Locations → New:

• Name: WH/Consignment Stock
• Location Type: Internal
• Owner: leave as the company (or use per-unit owner tracking)

Step 2 - Receive Consignment Goods#

Create a receipt from the vendor:

• Destination Location: WH/Consignment Stock (not your main stock)
• Valuation: none (do not create a purchase order - goods are not your asset yet)

Alternatively, use a purchase order with a consignment price of $0 - goods are received but at zero cost. The real cost is billed later.

Step 3 - Consume Consignment Stock#

When consignment goods are moved to production or used:

• Internal Transfer: WH/Consignment Stock → WH/Stock (or direct to production)
• This move records the consumption date and quantity

Step 4 - Bill on Consumption#

Periodically (weekly or monthly), reconcile consumption:

1. Pull the internal transfer report for WH/Consignment Stock → used
2. Create a vendor bill for the consumed quantities at the agreed price
3. Post the bill → COGS recorded at time of consumption, not receipt

Benefits of Consignment Arrangements#

Vendor Reporting#

Monthly: provide the vendor a consignment consumption report:

• Opening balance
• Received during period
• Consumed during period (this is the bill basis)
• Closing balance (still vendor's asset in your warehouse)