Consignment Sales

A consignment item is an item that you sell for another person or company, but that you do not store in your inventory. When most companies sell items on consignment, they receive payment for the items when they are sold, and then they write a check for a percentage of the selling price to the person or company for whom they sold the item. Use these instructions to set up and sell an item that you sell on consignment, as well as pay a vendor for the sales you make on consignment and review the results of your consignment sales.

Creating a Consignment Item

  1. Go to Inventory Command Center > Items List.
  2. Click New.
  3. In the Item # field, do not enter an item number in the same manner as you normally enter an item number in this field; instead, enter the name of the company for whom you are selling the item. Example: you are selling an item for the Lee Corporation, enter Lee in the Item # field.
  4. In the Name field, enter the name you use to describe the item. (You may want to use the word "consignment" in this field to help you remember the purpose of this item.)
  5. Mark the I Sell This Item selection and enter or select an account number in the Income Account for Tracking Sales field.
  6. On the Sales Details tab, enter the sales-related information about the item the click OK.

Selling a Consignment Item

  1. Click on the Sales Command Center and Enter Sales.
  2. In the Enter Sales window, click the Layout icon at the bottom and choose Item, then click OK.
  3. Enter information in the top half of the Sales window as you normally do.
  4. On the first line, enter the quantity of the consignment item that you sold in the Ship column. Then enter the consignment item's item number in the Item # column. If you have not created the consignment item yet, use the instructions in the previous section to do so.
  5. Mark entries in the remaining fields of the Sales window as you normally do.
  6. When you are finished, click Record.

Paying a Vendor After You Sell A Consignment Item

  1. If you have not done so already, use the Card File Entry window to create a card for the vendor you intend to pay for the consignment sale.
  2. In the Banking Command Center, click Spend Money.
  3. Enter your vendor’s name in the Card field and the amount you intend to pay the vendor in the Amount field.
  4. Enter an expense account or cost of sales account in the Allocation Account field.
  5. Click Record.