We have heard the term that world has become a global village but still in this global village the things that are extracted, manufactured from one place is very difficult to create link to the place where the ultimate consumer lives, due to huge distance, cost of production and the selling to far distance and the availability of local products.
Under such circumstances the consignment is probably the most easiest and effective way to create new markets where people can sell and distribute the products manufacture one place and provide it to ultimate consumer, goods that are produced in a one country and are send to another country, such dispatch of products is known as consignment.
Consignment is a process in which a person sends goods to another person living at two different places (person living in Europe sending goods to person living in Africa) for the purpose to store goods and then sale these goods on commission basis.
The person who send goods is known as consignor and person who receive the consignment is known as consignee.
The term inward and outwards are most familiar with almost every individual who is working in the office no matter what the size is of an organization or no matter what type of work they do either business related or academic institutions, each organizations has similar type or work with these terms.
Companies like banks, universities, government offices etc all office tiny to large uses the function of inwards and outwards. It is process in which a person either he or she receive or send some package.
For general the term outward can be described as when you send your products, package, unit, letter or anything to another person or office is to be called as outward but in vise versa when you receive these goods or package is to be called as inwards.
If I conclude here with concept of consignment the person who sends goods to another person is which is described as consignor will make his entries as an outward but the who will receive the delivery will make entry as an inward.
Lets understand this from an example Mr. John is living in England he is merchant of furniture, Mr. Clerk is living in Australia, John sends goods to Clerk (Outwards) , Clerk receives goods from John (Inwards). Same procedure is adopted at government offices as well for the dispatch of letters.