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Consigned flag and its significance

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We want to understand the significance of the Consigned flag as our client uses items that are Consigned with some suppliers but not with others in the same organization

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Our client has items in stock that he uses as consigned from certain suppliers, but same item can be used as regular item from another supplier. In this aspect, how do we update the Consigned flag attribute of the item as I understand that once we do so, any stock received will be shown as Consigned stock (per a recent cycle done, though there was no Consignment Agreement with the Supplier, the system treated a Purchase Order created for this item out of Replenishment Planning as a Consigned order because of this flag, and stock received was treated as Consigned

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