Abstract: A system is provided that manages consigned inventory. The system consumes consigned inventory items. The system further generates a consumption advice in response to the consumption of the consigned inventory items, where the consumption advice references a consignment agreement, a consignment order and a receipt. The system further communicates the consumption advice to a supplier. The consumption advice includes at least one of: a consumption advice number; a business unit; an inventory organization; a supplier; a supplier site; a start date; or an end date. The consumption advice includes one or more consumption advice lines, and each consumption advice line includes one or more consumption transactions.