What is consignment stock

Question

Accepted Answer

Consignment stock is inventory that is owned by a supplier but held by a customer until it is used or sold.

Consignment stock is a form of inventory management where the supplier retains ownership of the goods until they are consumed or sold by the customer.
The supplier places the stock at the customer's location, but the customer does not pay for the goods until they are used or sold.
The customer only pays for the goods when they are actually used or sold, reducing the financial risk for the customer.
Consignment stock allows the customer to have immediate access to inventory without having to invest in purchasing and storing it.
Examples of consignment stock include products placed on store shelves by suppliers, spare parts held by manufacturers, or materials provided by a vendor for a specific project.

Accepted Answer

In which the vendor keep their material in company premises and he will be ligal owner of that material if we used that material we have to pay for that.

What is consignment stock

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