I am a consignor. I sent products to customers on consignment. I also monitor inventory in quickbooks. How do I record products sent to customers on consignment?

Hi there, @maricel1.

I'll help share how you're able to start sending and tracking consignment products in QuickBooks Online.

To begin with, will have to set up the following features below to report the consignment process:

• Set up consignors as suppliers and classes
• Set up consignment income accounts and products
• Record consignment sales and payouts
• Create consignment reports

Now, here's how to turn on the class tracking feature:

1. Go to the Gear ⚙ icon.
2. Under Your Company, select Account and Settings.
3. Select Advanced.
4. In the Categories section, select Edit or the Pencil ✎ icon.
5. Toggle to turn on the Track classes feature.
6. Select Save.
7. Click Done.

Once done, go ahead and follow the rest of the steps needed to track your consignment products listed in this article: How to record consignment sales in QuickBooks Online?

I'm also adding this article for tips and guides you can utilize while using QuickBooks online to keep your business growing: Create and Manage Reports in QuickBooks Online.

If you have any other follow-up questions while working with your sales and customers, please let me know by adding a comment below. I'll be here to lend a helping hand. Take care and stay safe!

Thank you for your reply. However, please note that I am the consignor and not the consignee. I wanted to track inventories including the products sent to customers on consignment (note that this is still not considered as sales yet), Is there a way to update product inventory without recording sales income yet? 

Hello, @maricel1. Good to see you again. 

Allow me to join the thread and share information on how you can record the products you sent to customers on consignment.

To begin with, let's 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. Before doing so, let's turn on the class tracking feature. Once done, follow the below steps:

To enter consignees as customers: 

1. In the left menu, click Sales. 
2. Go to the Customers tab.
3. Click New customer.
4. In the Customer information window, enter the consignee's details.
5. Click Save. 

To set up consignees by classes: 

1. Go to the Gear icon at the upper right. 
2. Choose All Lists under Lists. 
3. Select Classes.
4. Click New.
5. In the Class window, enter the consignee's Name.
6. Click Save. 

After that, go to Expenses from the left menu, go to the Vendors tab and select New vendor. Then, enter your details in the Vendor Information window. This way, you'll be set yourself as the consignor.

Next, 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 on the steps above, see this article: How To Record Consignment Sales. 

Let me know how this works for you. I want to ensure that you're taken care of. Should you need any further assistance, don't hesitate to ask. The Community and I are always here to lend a helping hand.

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

With the above quote, does this mean I have to create another product item (consignment sales item) and I cannot use the existing product I have on inventory list? 

Can you give me more details on how to set up consignment sales item to track outgoing inventory? 

I'm chiming in to share some insight about your concern, @maricel1.

You can still use the existing product that you have on your inventory list. However, you'll want to change the income account that is assigned to the item and replaced it with the consignment account that you've set up earlier. This is for future QuickBooks Online transactions (QBO). If you used this item in a previous transaction, it will not affect your new account.

In addition, I've got you these articles for future reference:

• Change the account for a product/service item.
• Customise reports in QuickBooks Online.

I'm just a click away if you need further assistance with managing your consignment sales items. Keep safe and stay hydrated!

Thank you for this Kurt. I actually thought of this, and this might work. I just have one question, since we sell one specifice product both on consignment and non-consignment (actual sale), this means that I have to change the income account assigned to the item each time I record consignment, then change again to record an actual sale, right?