Rustler’s Quickbooks Tips

Create a PO for the individual or company that places items on consignment with you. List the items, the price you will pay for them, and the quantity.

These should be items in your non-inventory item list.  Set the COGS account to COGS or maybe better would be a sub account called “COGS-consignment”, and set sales to either a sales income account or a “sales-consignment” income account.

When you sell an item that was on consignment, put it on the sales receipt/invoice and sell it just as you would any item you stock.

Bring up the purchase order, set the quantity column to the number of the items sold, all other items in the list should be set to a quantity of zero. So the purchase order will have an amount equal to what the items sold cost. Click save and close.

Bring up pay bills. Put a check mark by the bill that corresponds to the items you just sold, the ones you marked on the Purchase order.  Then pay the bill.

If you accumulate the costs of the items sold on consignment for  a month or quarter or …, create a Credit Card account with the person/company name who places items on consignment with you.  When you pay the bill, use the “credit card” account to pay it.  The balance owed will accumulate in the credit card account - when you pay the bill to the person/company pay it just as you would a real credit card.  Write a check.

What happens is the sales receipt/invoice records the sale.  When you pay the bill for the items sold, that cost is sent to COGS.  The difference between the COGS and the sales amount is your commission.

The purchase order was marked as a partial receipt and if you bring it up again it shows that of the original quantity ordered, you received some.

That doesn’t track the amount on hand very easily, and for some reason adding the column “Quantity on Purchase Orders” to the item list does not work for non-inventory items either (2006).

You can add things to the original purchase order, even though you have sold some of the items and paid for them. Just click through the warning about payments being made and this may effect them when you click save.  But do not delete any lines that have a payment for, that will really screw the pooch.