GlossaryEN1 min readUpdated: Jun 22, 2026

consignment settlement

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://en.wikipedia.org/wiki/Consignment_stock

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Logistics Concept

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1 min

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Definition & Explanation

Consignment settlement is the periodic reconciliation and invoicing process between a consignor—the goods owner—and a consignee acting as warehouse holder or reseller, covering sold, returned or expired stock within a defined accounting period. The defining feature of consignment business is that title to the goods transfers only upon sale; the settlement records this transfer along with any interim stock movements or value adjustments. For customs and tax purposes, the distinction is significant: placing goods in a consignment warehouse does not necessarily trigger import duty in many jurisdictions, but the settlement event may constitute the tax-relevant point of supply. Gaps in stock reconciliation or incorrect period assignments create discrepancies in customs and VAT filings, exposing both parties to additional assessments. Consignment settlement should not be confused with a standard commercial invoice, which is issued at the point of ownership transfer on dispatch.