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AS questions
Level 1

If a vendor is sending me product on consignment, how do I receive the inventory without a bill?

I have created a separate inventory account, sales and COGS accounts to keep track of these products, but since the product are on consignment, I will not be invoiced until the products are sold.
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Best answer October 23, 2020

Best Answers
AlexV
QuickBooks Team

If a vendor is sending me product on consignment, how do I receive the inventory without a bill?

Good day, AS.

 

Thanks for the reply!

 

We can do an inventory adjustment to match what you actually have in stock without recording a purchase or bill. Let me show you how to do it in QuickBooks Online.

  1. Go to the + New button and select Inventory Qty Adjustment.
  2. Enter the Adjustment Date and select the appropriate Inventory adjustment account.
  3. Select the Product and enter either a New Quantity or a Change in Quantity.
  4. Click Save and close.

Please note that when you save the inventory adjustment, it automatically records adjustments to your stock asset and COGS accounts. Also, here's how to make changes to an inventory quantity adjustment you made.

 

Post again in the QuickBooks Community if you need more help. We'll respond as soon as we can.

View solution in original post

4 Comments
Ryan_M
QuickBooks Team

If a vendor is sending me product on consignment, how do I receive the inventory without a bill?

Hi @instatoolstore,

 

I'll share insight on your concern about consignment items.

 

Another option you can do in QuickBooks Online (QBO) is to record them as a Service item instead of an Inventory item. 

 

I can see you already have most of the steps covered, which are:

 

  1. Set up consignors as vendors and classes.
  2. Set up consignment income accounts and items.
  3. Record consignment sales and payouts.
  4. Create consignment reports.

You can refer to this article for the complete guide on how to set this up in QBO: How to record consignment sales. It includes the steps on how you can generate a custom report that shows you the sales and payout of your consignment items. 

 

Post a comment below if you have other concerns. I'll be sure to take care of them. 

AS questions
Level 1

If a vendor is sending me product on consignment, how do I receive the inventory without a bill?

Hello @Ryan_M,

 

Thank you for the tip, the problem is that I need the inventory tracking capability since its connected to my website and need to track item quantities. Is there a way to receive the product without a bill such as with QB desktop? Or should I upload them with a "fake" bill and then pay each item sold of that bill?

 

Thanks,
AS

AlexV
QuickBooks Team

If a vendor is sending me product on consignment, how do I receive the inventory without a bill?

Good day, AS.

 

Thanks for the reply!

 

We can do an inventory adjustment to match what you actually have in stock without recording a purchase or bill. Let me show you how to do it in QuickBooks Online.

  1. Go to the + New button and select Inventory Qty Adjustment.
  2. Enter the Adjustment Date and select the appropriate Inventory adjustment account.
  3. Select the Product and enter either a New Quantity or a Change in Quantity.
  4. Click Save and close.

Please note that when you save the inventory adjustment, it automatically records adjustments to your stock asset and COGS accounts. Also, here's how to make changes to an inventory quantity adjustment you made.

 

Post again in the QuickBooks Community if you need more help. We'll respond as soon as we can.

View solution in original post

AS questions
Level 1

If a vendor is sending me product on consignment, how do I receive the inventory without a bill?

Hello @AlexV,

 

I created a liability account to reflect the inventory on consignment and then proceeded to make the inventory adjustment and that seems to work. I appreciate it!

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