 Hello, in this lecture we're going to define consignor. According to fundamental accounting principles, while 22nd edition, the definition of consignor is owner of goods held by another party who will sell them for the owner. When we think about the term consignor related to a consignment ship, couple things are confusing. One, the idea of inventory, who owns the inventory and who is holding on to the inventory, and the idea of the consignor versus the consignia. We're talking about the person giving the inventory or receiving the inventory. For example, if we have a farmer in our example here who creates wine from the farm, the farmer is the consignor, the owner of the inventory in our case. The farmer is then going to give that wine to a restaurant to hold the consignee in this agreement, meaning that the farmer is still the owner. However, the restaurant in this case is holding on to the wine. The restaurant is the physical location of where the wine is at. So this could be confusing in terms of us determining what the inventory is and whose inventory it is. It's the consignor's inventory, the owner, even though the location, the person holding on to the wine, is the consignee. In this case, the consignee then being able to sell to the third party, in this case being a customer. So the restaurant is providing the service basically of providing the wine in a area that can then be sold to the customer, the third party. Once the customer has paid, most of that money will then go to the consignor, the actual owner, and the consignor and the consignee will have some type of business arrangement for that type of arrangement. This type of arrangement can work something like this. Artists often have something like this set up where they might display their art in something like a restaurant or some other location where clearly the artist owns the art, the consignor, who is then displaying it somewhere else as the consignee. Once the art is purchased, most of that revenue should go to the owner, the consignor.