Managing customer consignment stock by using a sales order

Is it possible to manage customer consignment stock with order management?

Actually, my customer manages his customer consignment stock by using this old procedure: user enters a (on-loan) sale order to ship an item to end customer without generate on invoice. When user confirms shipment, system creates a sale order issue (inventory transaction type) to decrement sub-inventory item on-hand quantity. Meantime user enters a miscellaneous transaction receipt in the 'ONLOAN' sub-inventory by providing customer name as locator name to trace item quantities shipped to the customer location. When item comes back, user enters a sale order returns to receive item with an RMA transaction in the original sub-inventory location; at the