I am the consignor. How to record outgoing inventory?

Consider using an inventory management with consignment feature to integrate with your QBO. You may start exploring from this app.

https://go.tradegecko.com/register?code=fiat-lux

Hope it helps.

I have the steps to record the outgoing inventory as a consignor, @alan0083. 

You can set up your consignees as customers and assign classes to them in the program. Then, set up yourself as a vendor since you're the consignor. Let's turn on the class tracking feature before performing the steps below. 

To enter consignees as customers: 

1. Go to Sales from the left menu. 
2. Select Customers.
3. Choose New customer.
4. In the Customer information dialog, enter the consignee's details.
5. Click Save. 
6. Repeat the process for other consignees. 

The screenshot below shows you the fourth to fifth steps. 

To set up consignees by classes: 

1. Go to the Gear (Settings) icon at the upper right. 
2. Select All Lists under Lists. 
3. Choose Classes.
4. Click New.
5. In the Class dialog, enter the consignee's Name.
6. Hit Save. 
7. Repeat the process for other consignees. 

See the screenshot below to show you the fourth to sixth steps. 

Once done, go to Vendors from the left menu and select New vendor. Then, enter your details in the Vendor Information window. This way, you can set up yourself as a vendor. 

Second, you can create two accounts to help track your consignment sales. Then, set up a consignment sales item to track your outgoing inventory. 

Third, you can enter invoices or sales receipts to record the consignment sales and the outgoing inventory. Please make sure to use the Consignment item and select the appropriate consignee in the Class field. 

For detailed instructions, see the first to third steps through this article: How To Record Consignment Sales. 

As always, you can create a customized report to view the breakdown of your consignment sales. Just go to Reports from the left menu. Then, enter Profit and Loss by Class in the Search box and select it. You can refer to the fourth step in the article I provided above. 

Moreover, I recommend using an inventory management app with consignment feature that integrates with the program. You can refer to the apps provided by Fiat Lux - ASIA above. 

Just click the Reply button below if you need anything else. I'm always here to help, @alan0083. 

How does setting yourself up as a vendor transfer it from your assets to your consignment assets when you transfer the items to the consignee? 

Hello there, NaturalSkin.

 You can set up consignors as vendors and classes. The first thing to do is to make sure you have turned on the Class tracking feature. Then, set up yourself as a vendor in QuickBooks Online. Here's how:

1. Select Expenses, then Vendors.
2. Select New Vendor.
3. Use the fields in the Vendor information dialog to enter your information.
4. Select Save and close.

Once done, you'll need to assign yourself to a class for reporting purposes. Here's how:

1. Go to the Gear icon.
2. Under Lists, choose All Lists.
3. Select the Classes item to open the Classes page.
4. Select New.
5. Enter the consignor's Name in the Class dialog.
6. Select Save and close.

Then, proceed with setting up consignment income accounts in the Chart of Accounts (COA) to help track consignment sales and payouts. Now, you are ready to set up the consignment sales item. 

To make sure you won't miss a single step with the process, you can check this article: How to record consignment sales. Also, when running reports for a consignment, you can check the articles below for more details:

• Customize reports in QuickBooks Online.
• Common custom reports in QuickBooks Online. 

Don't hesitate to post again if you have follow-up questions. I'm right here to help and guide you further. Take care and stay healthy.

This is a canned answer that I have seen multiple times before but does not answer my question nor does it make sense for the consignor to do this

I agree, I cannot se either how it works that way.

Somebody else gave me a suggestion that I have been following for three years and it seems working.

it is a workaround of course, as QB online has not (!!!) implemented a workable procedure to track stock in consignment. As we do not have many products the following worked for us but may not work for you.

We have created duplicated of products with the name of the consignee in the product name, so for example, assuming we have 10 copies of "SC800 Product1", we created "SC800 abc Product1", "SC800 def Product1" etc where "abc" and "def" are abbreviations for two consignees - in this example - and then we move stock using "stock shrinkage", for example, when we send 2 copies to consignee "abc":

SC800 Product1 .............. -2

SC800 abc Product1 ......+2  

and therefore we have recorded sending 2 x SC800 abc Product1 to consignee "abc"

and taken 2 Product1 off the main stock.

(stock will show now 8 copies of "SC800 Product1" and 2 copies of "SC800 abc Product1"

When the consignee abc sends the sales report, for example they have sold 1 copy, in the invoice we input:

Qty = 1

Product/Service = SC800 abc Product1

etc.

So the result - also in the reports - is:   

"SC800 Product1" = 8 copies in stock

"SC800 abc Product1" = 1 copy in stock

"SC800 abc Product1" = 1 copy sold

If we sell not in consignment to customer ghi, of course in the invoice we put the 'normal' SC800 Product1

we have only 60/100 products so - as the barcodes and descriptions remained the same and the only alteration was in the product name, it was not too time consuming job.

I have typed the above in a hurry and hope is clear enough. As I said it may not work for you if you have 100s of products and dozens of consignees but it is the best I can suggest as I also had no luck in getting 'proper' answers in this forum.

Wish you all the best!

Yes, thank you. I saw something similar elsewhere. I was hoping there was an easier way. But I wish Intuit had better control over what their admins post, it could be causing people to misstate their financials.

you are sooo right. I had some good experiences with telephone customer service when luckily I got to talk to people that were more practical (hands on the real work) than software nerds. Sometimes, this going to and fro via email is frustrating and one seem to be talking to people that live on a different planet.  QuickBooks should be a user friendly program and, somehow, the developers forget that real people are using it, people that are not necessarily accountants. And yes, Intuit should put more care in the choice of admins and talk to beginners as well, as beginners are their future....

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@NaturalSkin wrote:

I was hoping there was an easier way. 

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@NaturalSkin 

Company has acquired one app with this consignment  feature last year. I have mentioned this app in earlier post. I am not sure they will put it as a part of QBO in due course. You may explore it to integrate with your QBO account.

https://go.tradegecko.com/register?code=fiat-lux

Thanks for this information. I haven't been able to find any updated ways to accurately record my sales to consignees. It seems QuickBooks Commerce isn't available yet to existing QBO customers. Is this still the method you are using? Thanks for taking the time to help.

Greetings,@MANdelMADE.

Thank you for reaching out to us. Let me help you record an outgoing inventory. as a consignor.

You can assign classes to your consignees in the program after setting them up as customers. Then, you can set up yourself as a vendor since you're the consignor. Let's turn on the class tracking feature and perform the steps below. 

To enter consignees as customers: 

1. From the left pane, select Sales.
2. Select Customers.
3. Select New Customer.
4. Enter the consignee's details in the customer information dialog.
5. Click on Save.
6. Repeat the process for other consignees. 

To set up consignees by classes: 

1. Click on the Gear icon.
2. Select All Lists under Lists. 
3. Choose Classes.
4. Click New.
5. Enter the consignee's Name in the Class dialog.
6. Click on Save.
7. Repeat the process for other consignees. 

Please feel free to read these handy articles for your reference:

- How to record consignment sales

- Connect QuickBooks Commerce with QuickBooks Online

Let me know if I can be of any additional help. Stay safe and have a good one!

@MANdelMADE 

Consider to migrate your data to a new blank QBO account and integrate it with the app as a workaround. You don't have to use QBO Plus or Advanced.

https:// quickbooks.grsm.io/US

https:// quickbooks.grsm.io/us-promo

Does this method work with QB Enterprise or just QB Online?

Does this work for QB Enterprise?  Or just QB online?

Thanks for hopping on this thread, @TalismanDesigns. 

To clarify, if you're referring to the inventory management with consignment third-party app, it should work both in QBO and Enterprise. 

However, if you're referring to the steps, the steps above only work in QBO. 

For QuickBooks Desktop, you can create your consignment item or items and a consignment template. Here's how: 

1. Go to the Lists menu, then select Item List.
2. Select Item and then New.
3. Click the Type drop-down menu. If you have a low volume of sales, select "Inventory Part." If you have a high volume of sales, select "Non-Inventory Part."
4. Enter the item name for a consignment item categorized as an Inventory Part. For Non-Inventory Parts, enter the name "Consigned Item" and check the "This Item Is Purchased for and Sold to a Specific Customer:Job" box.
5. Click the "Income Account" drop-down list and select "Consignment Sales." Then select the "Asset Account" drop-down menu and choose "Inventory on Consignment" if you are creating an Inventory Part item. If you selected a Non-Inventory Part, click the "Income Account" drop-down list and select "Consignment Sales." Select the "Expense Account" drop-down list and choose "Inventory on Consignment."
6. Click the Preferred Vendor drop-down list and select a vendor, then enter the cost for Inventory Part items and enter "0" for Non-Inventory Part items in the Cost field. 
7. Click the Tax Code drop-down menu and choose an appropriate tax code from the list, then click the "Custom Field" field button.
8. Type "Consignor" as the field name. Enter a vendor name in the Consignor field for Inventory Parts, leave the field blank for Non-Inventory Parts, then select Save & Close. 

For future reference, check out this article should you need some easy steps to adjust your inventory quantity or value in QuickBooks Desktop.

Let me know how it goes by commenting below. I always want to make sure you're all set. Take care!

@TalismanDesigns 

The additional app I mentioned earlier only works with QBO. You will need another app to integrate with your QBD Enterprise. You may create many consignment branches where stocks are owned by your business but stored on your customers' premises. Therefore, to track this stock you will need to create a separate branch.

thisis the correct answer. Practical and clearly from a biz owner perspective. i hope qb can queries like this.