Ownership of the consignment stock is only passed on if the stock is used (issued or sold in the case of a store). Unused inventory can be returned to the supplier if they are standard products. Product return agreements should be negotiated with customer-specific items. Since ownership of the deposit stock is not transferred until after use, billing is not immediate. To account for the replenishment of the consignment stock on a customer site, a producer must credit the stock and debit the debitor deposit stock. It is only when a customer actually uses the deposit stock that a stock of receivables can be built up. The consignment stock is a legitimate stock, legally held by one party, but held by another party, which means that the risk and rewards for that stock remain in the first part, while the second part is responsible for distribution or retail. [1] [2] If necessary, the supplier assures the company that the stock of an item is available between the agreed minimum and the agreed ceiling and that it is stored near the point of use of the business. The company does not own or pay for the stock until it is consumed or sold. In this way, the supplier immediately has information on the consumption of the item, which facilitates the continuous upgrading of stocks. This provides the company with some protection against fluctuations in demand by ensuring that stocks are always available, while better informing the supplier of the consumption of the item.