Mastering Consigned Inventory Management in NetSuite 2026.1

Introduction

With the release of NetSuite 2026.1, managing vendor consigned inventory has never been easier. The introduction of a dedicated Consigned Inventory Management feature allows developers and administrators to meticulously track inventory that remains under vendor ownership until it is sold. This article explores the intricacies of this feature, designed to streamline purchasing, receiving, and fulfillment processes for consigned items.

Key Features of Consigned Inventory Management

The Consigned Inventory Management feature brings several enhancements tailored to businesses that operate with consigned goods. Here’s what you need to know:

• Distinct Inventory Statuses: NetSuite allows businesses to track vendor consigned inventory using unique statuses, separating them from standard inventory items. This differentiation aids in accurate reporting and inventory management.
• Multi-location Support: If your business operates across several locations, you can designate specific consigned inventory statuses for each location. This versatility ensures organized tracking of items based on location-specific needs.
• Separated Tracking: For item records that are enabled for consigned inventory, you can monitor quantities and financial values (costs and revenue) of consigned versus non-consigned inventory at each location, facilitating better inventory management.
• Costing Method Configurations: The setup involves designating a vendor consigned asset account and an optional vendor consigned COGS (Cost of Goods Sold) account, which can significantly impact your financial reporting.

Transaction Types Supporting Consigned Inventory Management

Incorporating consigned items into your workflow can be achieved through various transactions. Understanding how to correctly use these transactions is crucial for achieving optimal inventory management:

1. Purchase Contracts: Initiate a purchase contract for consigned items by marking it as consigned.
2. Purchase Orders: When creating purchase orders, you can check the Consigned box on line items or link the entire order to a previously created purchase contract.
3. Item Receipts: During the receiving process, add items that have been received with the correct consignment statuses to the item receipts derived from the purchase orders.
4. Vendor Returns: Enable the return process for unconsumed items without taking ownership through vendor return authorizations.
5. Outbound Fulfillment: Use sales or transfer orders for consigned products, generating fulfillments only for the quantities actually fulfilled.
6. Sales Transactions: Record sales of consigned items on cash sales or invoices, whether automatic or manually created.
7. Vendor Bills: Generate vendor bills from purchase orders that include only consumed quantities of consigned items.

Best Practices for Using Consigned Inventory

To maximize the benefits of the consigned inventory management feature, consider the following best practices:

• Maintain Accurate Inventory Statuses: Ensure that consigned items are consistently tracked with the appropriate statuses to avoid confusion with non-consigned inventory.
• Regular Monitoring: Use the Consignment Purchases workbook to monitor and review consumption to prevent overstocking or stockouts.
• Integrate Fulfillment Processes: Ensure smooth integration between procurement, fulfillment, and sales processes to facilitate the transfer of ownership at the point of sale seamlessly.

Conclusion

As NetSuite continues to evolve, the Consigned Inventory Management feature in version 2026.1 represents a significant advancement for businesses managing vendor consigned inventory. By leveraging this feature's capabilities, you can streamline inventory processes, enhance accuracy in tracking, and ultimately improve the efficiency of your supply chain operations.

Key Takeaways

• The Consigned Inventory Management feature allows for dedicated tracking of vendor consigned items with unique inventory statuses.
• Multi-location capability enhances inventory management in businesses with several stores or warehouses.
• Various transaction types, such as purchase contracts and vendor return authorizations, can simplify the management of consigned items.
• Accurate tracking and monitoring are essential to avoid confusion between consigned and non-consigned inventory.