Hi,

We're in a similar situation. 

For those products, we configure them with a cost of 0$ and a purchase price of 0$. We still make POs to our customer for raw materials to be able to use the replenishment features and to create the receipts for the materials.

We configure the finished products the same way, with a value of 0$ and a sales price of 0$ and create SOs to our customer to create the delivery orders and the demands for MTO and min/max. We do this since we need to be able to ship those goods directly to different retail stores (effectively, our customer drop ships goods from our warehouse). We then create an invoice based on the amount of product shipped and charge the customer.

This allows for all the goods to be value-less in the inventory while still being able to track locations, lots and expiration dates.

We've explored the consignment feature, but it interacts weirdly with manufacturing: when you consume a consigned product in a MO, the finished product is not consigned and you would need to deliver it and receive it back as a consigned item afterwards.

If you want further details, please do ask!