Inward Consignment

A consignment from consignee’s point of view is called inward consignment.

It is referred to as inward once the receipt of the number of goods is created for the purpose of sale.Goods sent on consignment don't become the property of the receiver. He has not bought them. The ownership remains with the sender o the consignor. If the products ar destroyed, the receiver (consignee) is nor the least bit responsible. The loss can fall on the shipper. The consignee tries to sell the products per the directions of the shipper. once the products are sold , he can deduct his expenses, commission etc., from the sale return and also the balance is remitted to the consignor. the link between the consignor and also the consignee is that of principal and agent.The receiver is that the agent. The receiver acts entirely on behalf of the shipper.The consignee is entitled to his remuneration that is mostly fastened on the premise of a commission on sales. The expenses incurred by the consignee should even be reimbursed by the principal. the coed should remember that the consignee doesn't get the goods; he simply receives the possession of products. Therefore, such merchandise need special treatment in accounts.