how to manage the consignment inventory at my warehouse

Hi!,

We have agreement with vendors to stock certain items at our warehouse without charging us unless we use and inform the vendor to charge.

- How we maintain these consignment inventory at our stores without showing in our balance sheet?

- what will be the procedure to issue consignment inventory and book in our records and at the same time what transaction to follow to record supplier payments?

- Supplier will have to replenish the stocks based on the intimation from our end on a monthly basis based on our consumption.

- Do we have to create a separate warehouse (branch plant) with NO G/L interface? If yes then , how do we transfer these stocks to the main warehouse? Or can we issue directly from the consignment inventory warehouse?