I have read some of the posts on Consignments. I do understand that Consignment Items are NOT owned by me, however I also need the ability to track their inventory within Quickbooks. Would not the following be a viable option:
Company ABC is dis-continuing inventory and would like to "Consign" inventory to us to sell for them. At the time of sale, 50% of sales price goes back to the company that gave us the goods. Is the following work flow acceptable:
#1 - Inventory Items created with $0 Average cost, COGS Account created for "Purchases ABC", Income Account created for "Sales ABC" Each individual item is created and tied to these accounts.
#2 - At the end of the quarter, report run showing all sales of income account "Sales ABC"
#3 - Company ABC invoices my company for 50% of the sales.
#4 - We pay the invoice and under expenses on the check select "Parts Purchases ABC"
Because we are using 0.00 Average cost, it shouldn't impact our inventory asset accounts?
We are trying to accomplish the following: Track the items and quantity (Hence why we are using inventory items), only pay for the items that are sold, when they are sold. (or quarterly). Make sure that these items do NOT impact our books for anything other than when they are sold, and the consignment payment is made.
What am I missing? We really need to be able to track the inventory of the items within quickbooks because it is integrated into our sales channels/webstores.
Any insight would be appreciated.
