@cquigs717
"We have all of their invoices entered into QuickBooks though and so the P&L obviously looks insanely off." Your P&L should not be affected by bills for inventory, only your balance sheet, and that's only for non-consignment inventory. Since you do not own the consignment inventory (the consignor does), only the consignor can have the inventory on their balance sheet - two taxpayers cannot claim the same inventory. It sounds like you're aware that there are no payables to track with consignment inventory until AFTER it has sold.
The proper way to deal with consignment inventory is to track it outside of QB. Alternatively, if you want to see the volume of inventory in QBO, you can create a journal entry whenever you get consignment inventory: debit consignment inventory, credit inventory asset. This will show your consignment inventory total with a corresponding negative total for your inventory asset account so they net to zero and have no net effect on your balance sheet. Again, since you do not own the inventory, from an accounting standpoint, you do not want consignment inventory to have any effect on your financial statements until after it has sold.
