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setting up a A/R account for money received with no invoice

I have items in a "consignment craft store"; I pay a monthly fee to rent space. At the end of the month, the store sends me a check for the items that sold. From the money I made, I have them deduct the next month's rent.  How do I set this up? I'm a new business owner and a little confused how to do this. I don't send an invoice? 

Solved
Best answer 08-09-2019

Accepted Solutions
Moderator

Re: setting up a A/R account for money received with no invoice

Glad to see you here in the Community, VickieA.

Helping you set up an A/R account is my priority. Let's get you started.

 

Setting up an A/R account for consignment items is quick and easy. There are four basic steps to this procedure:

 

  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.

As an initial step, let's ensure your class tracking feature is turned on. Here's how:

 

  1. Click Edit at the top menu bar and choose Preferences.
  2. In the Preferences window, click Accounting in the list on the left. Click the Company Preferences tab.
  3. In the Class section, select the Use class tracking for transactions checkbox.

  4. Hit OK.

z.PNG

 

Enter consignors as vendors:

 

  1. Click Vendors at the top menu bar and choose the Vendor Center.
  2. Click New Vendor.

x.PNG

 

Set up consignment income accounts:

 

  1. From the Lists menu, select Chart of Accounts.
  2. Right-click anywhere in the Chart of Accounts, then select New.
  3. In the Add New Account window, select the Other Income radio button.
  4. Select Continue.
  5. In the Account Name field, enter Consignment Sales.
  6. Click Save & Close.

v.PNG

 

After that, you can record the consignment sales and payouts. You are now set up to sell consignment items and pay consignors. As you create invoices or sales receipts and record payouts, remember the following:

 

  • Sales: When you create an Invoice or Sales Receipt, be sure to use the Consignment item for the sale, and to select the appropriate consignor in the Class field.
  • Payouts: When you record a payment Check to a consignor, be sure that the Consignment Payout account is used to record the payout amount, and that the consignor's Class is listed on the same line as the payout account.

You can get more information, check out these articles:

 

For additional help, you can also reach out to our QuickBooks Desktop Support.

 

  1. Within your QuickBooks Desktop, click Help at the top menu bar.
  2. Click Contact us.
  3. To route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
  4. We’ll provide you a few options. You choose which one is best for you.

Keep me posted if you still need help concerning consignment sales in QuickBooks. Have a great rest of your day.

1 Comment
Moderator

Re: setting up a A/R account for money received with no invoice

Glad to see you here in the Community, VickieA.

Helping you set up an A/R account is my priority. Let's get you started.

 

Setting up an A/R account for consignment items is quick and easy. There are four basic steps to this procedure:

 

  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.

As an initial step, let's ensure your class tracking feature is turned on. Here's how:

 

  1. Click Edit at the top menu bar and choose Preferences.
  2. In the Preferences window, click Accounting in the list on the left. Click the Company Preferences tab.
  3. In the Class section, select the Use class tracking for transactions checkbox.

  4. Hit OK.

z.PNG

 

Enter consignors as vendors:

 

  1. Click Vendors at the top menu bar and choose the Vendor Center.
  2. Click New Vendor.

x.PNG

 

Set up consignment income accounts:

 

  1. From the Lists menu, select Chart of Accounts.
  2. Right-click anywhere in the Chart of Accounts, then select New.
  3. In the Add New Account window, select the Other Income radio button.
  4. Select Continue.
  5. In the Account Name field, enter Consignment Sales.
  6. Click Save & Close.

v.PNG

 

After that, you can record the consignment sales and payouts. You are now set up to sell consignment items and pay consignors. As you create invoices or sales receipts and record payouts, remember the following:

 

  • Sales: When you create an Invoice or Sales Receipt, be sure to use the Consignment item for the sale, and to select the appropriate consignor in the Class field.
  • Payouts: When you record a payment Check to a consignor, be sure that the Consignment Payout account is used to record the payout amount, and that the consignor's Class is listed on the same line as the payout account.

You can get more information, check out these articles:

 

For additional help, you can also reach out to our QuickBooks Desktop Support.

 

  1. Within your QuickBooks Desktop, click Help at the top menu bar.
  2. Click Contact us.
  3. To route you to the correct support expert, we need to know what type of question you have. Give a brief description of your issue and click Continue.
  4. We’ll provide you a few options. You choose which one is best for you.

Keep me posted if you still need help concerning consignment sales in QuickBooks. Have a great rest of your day.