SETUP:

Create a storeroom in the Storerooms application (for example, "CONSIGNMENT" storeroom)

STEPS:

1) Create a Consignment Item as follows:

Go to the Item Mas ter application and create a new item (for example, item CONS2).
Order Unit=EACH and Issue Unit=EACH

Select the "Add items to Storeroom" action.

Enter the following in the "Add Items to Storeroom" dialog box:

Consignment = checked
Storeroom = CONSIGNMENT
Issue cost type = FIFO (First In First Out)
Consignment Vendor = VOLVO
Invoice generation Type = CONSUMPTION

Click OK.
Go to the Storerooms tab and verify that this item is added to the CONSIGNMENT storeroom.

Change the item's Status to 'Active'.

"Roll new Status to Organizations and Inventory"  = checked
Click OK.

2) Add the Vendors for this Consignment Item in Inventory application:

Go to the Inventory application and the Reorder tab.
Set Last Price of the primary vendor "VOLVO" = $10.00
Add a couple more vendors.

Enter a value for the Last Price of the newly-added Vendors.
Save the record.

Hyperlink to the Companies application.
Select the DATASTAR vendor and set Disqualified Vendor = checked
Select the SKF vendor and set Disqualified Vendor = checked

NOTE: Disqualified Vendors are considered to be invalid Vendors and their Last Price value must not get picked up when you create Purchase Orders or Work Orders.
 

3) Purchase and receive this consignment item as follows:

Go to the Purchase Orders application and create a new PO record (for example, PO "CONS2").

Vendor is the consignment vendor, "VOLVO".

Go to the PO Lines tab.

POLine 1, Item=CONS2

Storeroom=CONSIGNMENT 

Quantity=10 

UnitCost=10

That is, the Cost value is brought across from the last price of VOLVO entered from the Reorder Details tab in the Inventory application.

Approve the PO record.

Go to the Receiving application and receive the Consignment Item. 

4) Go to the Inventory application, find the consignment item "CONS2" and check data.

'LIFO / FIFO Costs' section:
The first one Unit Cost=10, Quantity=10

Inventory balances section:
Current balance = 10
Physical count = 10

5) Consignment items can be issued to Work Orders and get consumed and Invoices are created: 

Go to the Work Order Tracking application and create a new Work Order record.
Change the Work Order's status to Approved.

Go to the Actuals tab and the Materials sub-tab.
Insert a new row:
Transaction Type = ISSUE
Line type = Item
Item = CONS2
Storeroom = CONSIGNMENT
Site = BEDFORD
Quantity = 1
Enter a GL Debit Account value.

Save the record.

Go to the Invoices application.
Click the down arrow next to "Advanced Search" and select "More Search".

Select Type = CONSIGNMENT

Enter Item = CONS2

Click the "Find" button.

A newly-created Consignment invoice is returned (for example, Invoice 1080 with Type = Consignment)

Setting Invoice generation Type = CONSUMPTION therefore automatically generates new Consignment Invoices when the Consignment items are consumed.

Go to the invoice Lines tab.
The Consignment Item value is populated on the Invoice line.