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K
kmessick
January 6, 2023
Question

Managing consigned inventory as consignee

  • January 6, 2023
  • 3 replies
  • 36 views

I am the consignee and need to track inventory being consigned by consignor. 

3 replies

R
Rea_M
Level 10
January 6, 2023

Hello there, @kmessick.

 

I'll make sure you can manage consigned inventories as a consignee in QuickBooks Desktop (QBDT) and track your transactions accordingly.

 

When you sell items on consignment, you'll have to set up consignors as vendors and classes and create consignment income accounts and items. Then, record your consignment sales and generate reports to manage your consigned inventories as a consignee. Before doing so, I encourage you to consult your accountant. They can guide you in setting up the appropriate account and provide expert advice tailored to your business needs.

 

Whenever you're ready, check out the guide below to track consignment sales and payouts in QBDT:

 

  1. Set up consignors as vendors and classes.
  2. Set up consignment income accounts. 
  3. Set up items.
  4. Record consignment sales (invoice or sales receipt) and payouts (payment check to a consignor).
  5. Create a consignment report, like the Profit and Loss by Class report (filter by Consignment Income and Consignment Payouts).

 

Additionally, receiving inventory is part of your usual A/P workflow in QBDT. To see the complete list of workflows and other vendor-related transactions, you may want to check out this article as your reference: Accounts Payable workflows in QuickBooks Desktop.

 

If there's anything else you need or you have other concerns about managing inventories as a consignee in QBDT, please don't hesitate to let me know in the comments below. I'm always ready to help. Take care, @kmessick.

K
kmessickAuthor
January 6, 2023

I'm not sure I'm following. I hold the consigned inventory for another company and am paid a commission when that I sell that inventory. I need to track the inventory the manufacturer has put in my warehouse. 

Z
ZackE_Moderator
Moderator
January 6, 2023

Thanks for following up with the Community, kmessick.

 

You can set up and track inventory in your books by turning on inventory, then setting up the necessary items.

 

Here's how:
 

  1. In your top menu bar, go to Edit, then Preferences.
  2. Access the Items & Inventory tab, then open Company Preferences.
  3. Tick your Inventory and purchase orders are active checkbox. Also review the alerts you have active/inactive. QuickBooks can, for example, notify you if a sale exceeds your quantity of inventory. If you use Enterprise and Advanced Inventory, you can also check out the Advanced Inventory Settings.
  4. When you're finished, select OK.

 

Now that inventory tracking is activated, go to Items & Services from your Home Page and use the displayed list to set up new inventory items:
 

  1. Click Item, then New.
  2. Choose a TYPE. There's two types of inventory parts and inventory assemblies. An Inventory Part is used to track items that you've purchased from suppliers and plan to sell. An Inventory Assembly can be used if you manufacture inventory
  3. Enter any other necessary details.
  4. Select OK.

 

Your inventory will now show up on the Items & Services list.

You'll also be able to find many detailed resources about managing inventory in our help article archives.

 

If there's any additional questions, I'm just a post away. Have a wonderful day!

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