cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 2

How do I handle the return of a consignment sale where the consignor has already been paid?

I have a small consignment art gallery (65% artist/35% gallery). We have a "no returns" policy but a special situation occurred where I decided to accept the return. The original sale was $1000. I recorded the bank deposit and split $650 to Accounts Payable: Artist John Doe and $350 to Commission Income: Artist John Doe. At the end of the month, I sent the artist a check for $650 and reversed the AP so payables for that artist were now $0. My confusion is how to handle the return. When the buyer brought the painting back, I issued a refund for $1000 to the credit card. The artist agreed with the decision to accept the return and reimbursed me the $650 he had been sent. (A few weeks later, the painting was sold again.) How do I handle the original return and the return of the consignment payment? I can reduce the Commission Income but what do I do about the check written to me by the artist? It doesn’t go to AP does it? Thanks
Solved
Best answer April 19, 2020

Best Answers
Highlighted
QuickBooks Team

How do I handle the return of a consignment sale where the consignor has already been paid?

Thank you for the detailed information, @BillM

 

I'm here to guide you on how to record the customer refund from a consignment sales and to enter a refund from a vendor.

 

First, let's enter a vendor credit to record the refund from the consignor or vendor.

 

Step 1. Enter a vendor credit.

  1. Select +New.
  2. Choose Vendor Credit.
  3. In the Vendor dropdown, select your vendor.
  4. Enter the Category Details or Item details.
  5. Select Save and close.

 

Next, you'll need to deposit the money you got from the refund. Please refer to this article and proceed to Step 2 and Step 3Enter a refund from a vendor.

 

Once done, follow these steps to record a customer refund.

 

  1. Select + New.
  2. Choose Refund receipt.
  3. Select the Customer drop-down arrow, then select the customer you want to refund.
  4. Select the Refund From drop-down arrow, then select the bank you deposited the payment for the invoice or sales receipt.
  5. Add all products or services the customer returned in the Product or service column.
  6. Select Save and close.

 

You can open and customize the Profit and Loss by Class report to see how your consignment sales and payouts go.

 

Stay in touch if you have other questions. Have a good one. Take care.

 

View solution in original post

1 Comment 1
Highlighted
QuickBooks Team

How do I handle the return of a consignment sale where the consignor has already been paid?

Thank you for the detailed information, @BillM

 

I'm here to guide you on how to record the customer refund from a consignment sales and to enter a refund from a vendor.

 

First, let's enter a vendor credit to record the refund from the consignor or vendor.

 

Step 1. Enter a vendor credit.

  1. Select +New.
  2. Choose Vendor Credit.
  3. In the Vendor dropdown, select your vendor.
  4. Enter the Category Details or Item details.
  5. Select Save and close.

 

Next, you'll need to deposit the money you got from the refund. Please refer to this article and proceed to Step 2 and Step 3Enter a refund from a vendor.

 

Once done, follow these steps to record a customer refund.

 

  1. Select + New.
  2. Choose Refund receipt.
  3. Select the Customer drop-down arrow, then select the customer you want to refund.
  4. Select the Refund From drop-down arrow, then select the bank you deposited the payment for the invoice or sales receipt.
  5. Add all products or services the customer returned in the Product or service column.
  6. Select Save and close.

 

You can open and customize the Profit and Loss by Class report to see how your consignment sales and payouts go.

 

Stay in touch if you have other questions. Have a good one. Take care.

 

View solution in original post

Need to get in touch?

Contact us