QuickBooks POS: Consignment transactions


Detailed instructions

Point of Sale was not designed to track consignment transactions, however, you can use some of its features to handle consignment items manually.

Track consignment items using Purchase Orders
More thorough (Pro and Pro Multi-store only)

Important: To record these transactions you will need QuickBooks Point of Sale Pro or Multi-store.

 

Step 1: Add the consignment item to your inventory and prepare it to be sold

  1. In Point of Sale, create your Seller as a Vendor and add the consignment item to your inventory:
    1. Choose Purchasing > New Vendor and add the seller to your vendor list.
    2. Choose Inventory > New Item and add the consignment item:
      • In the Vendor field, select the seller.
      • Leave the QTY and Cost blank for now.
  2. Create a purchase order for the item – (this creates a paper trail for accepting the item):
    1. Choose Purchasing > New Purchase Order.
    2. In the Vendor field, select your Seller.
    3. Add the consignment item to the order:
      1. If you know how much you’ll pay the seller once the item is sold, enter it in the Cost field now. If you don’t know, don’t worry, you can enter it later.
      2. In the Ordered field, enter the appropriate quantity.
    4. Save the purchase order.
  3. (Customers performing financial exchanges with QuickBooks only:) Make sure you’re entering vendor billing information in Point of Sale:
    1. Choose File > Preferences > Company.
    2. Select Receiving and make sure Enter vendor billing information in Point of Sale is selected. This will help create the seller’s bill in QuickBooks after you’ve sold their item.
    3. Click Save.

 

Step 2: Sell the consignment item

(Versions newer than v10.0)

  1. Choose Purchasing > Receive Items.
    • Important: Before selling the consignment item on a sales receipt, you should receive the item from the original purchase order — this is the only way to ensure your Cost of Goods Sold will calculate correctly.
  2. Choose I Want To > Receive from PO and select the purchase order for the consignment item. Click Select items to receive, enter the appropriate quantity being sold, and click Continue.
  3. At this time, if you haven’t already, determine how much you’re going to pay the seller for their item. In the Voucher Cost field, enter this amount.
  4. Choose I Want To > Enter Billing Info:
    • Invoice No.: This can be anything you want and is only needed to create the bill in QuickBooks
    • Bill Date: Today’s date
    • Payee: The seller’s name on the vendor list
    • Invoice Due: The date by which you’d like to pay the seller.
  5. Save the voucher and click the Home button.
  6. Choose Point of Sale > New Sales Receipt. Sell the consignment item like any normal transaction, making sure to enter/update the Price if necessary.

 

Step 3: Pay the seller or give them store credit

The bill for the item will be sent to QuickBooks during the next financial exchange. Simply choose Vendors > Pay Bills to pay the Seller directly.

Steps for generating store credit to the seller

Note: Unfortunately, this process may seem convoluted, but it’s the only way to transfer credits to your seller that they can use as a customer. We are aware of this unwanted complexity and are working toward an easier method in the future.

  1. Add a bank account named Consignments:
    1. Choose Lists > Chart of Accounts.
    2. Click Account and choose New.
    3. Select Bank and click Continue.
    4. In the Account Name field, enter Consignments. Click Save & Close.
  2. Set up your seller as a customer:
    1. Choose Customers > Customer Center.
    2. Click New Customer & Job and select New Customer.
    3. In the Customer Name field, enter the name of your seller.
      • Important: Point of Sale already created your seller as a vendor during the consignment process and they already exist on your names list. You will have to choose a non-identical name in order to save. Considering usingĀ Seller Name – Customer or Seller Name – C.

 

Track consignment items using Receiving Vouchers – Quicker (All levels)

 

Clothing Store Point of SaleStep 1: Add the consignment item to your inventory and prepare it to be sold

  1. In Point of Sale, create your Seller as a Vendor and add the consignment item to your inventory:
    1. Choose Purchasing > New Vendor and add the seller to your vendor list.
    2. Choose Inventory > New Item and add the consignment item:
      • In the Vendor field, select the seller.
      • Leave the QTY and Cost blank for now.
  2. (Customers performing financial exchanges with QuickBooks only:) Make sure you’re entering vendor billing information in Point of Sale:
    1. Choose File > Preferences > Company.
    2. Select Receiving and make sure Enter vendor billing information in Point of Sale is selected. This will help create the seller’s bill in QuickBooks after you’ve sold their item.
    3. Click Save.

 

Step 2: Sell the consignment item

(Versions newer than v10.0)

  1. Choose Purchasing > Receive Items.
    • Important: Before selling the consignment item on a sales receipt, you should receive the item on a voucher — this is the only way to ensure your Cost of Goods Sold will calculate correctly.
  2. Add the consignment item (already created in inventory) to the voucher and enter the seller as the vendor.
  3. At this time, if you haven’t already, determine how much you’re going to pay the seller for their item. In the Voucher Cost field, enter this amount.
  4. Choose I Want To > Enter Billing Info:
    1. Invoice No: This can be anything you want and is only needed to create the bill in QuickBooks
    2. Bill Date: Today’s date
    3. Payee: The seller’s name on the vendor list
    4. Invoice Due: The date by which you’d like to pay the seller.
  5. Save the voucher and click the Home button.
  6. Choose Point of Sale > New Sales Receipt. Sell the consignment item like any normal transaction, making sure to enter/update the Price if necessary.

 

 

Step 3: Pay the seller or give them store credit

The bill for the item will be sent to QuickBooks during the next financial exchange. Simply choose Vendors > Pay Bills to pay the Seller directly.

Steps for generating store credit to the seller

Note: Unfortunately, this process may seem convoluted, but it’s the only way to transfer credits to your seller that they can use as a customer. We are aware of this unwanted complexity and are working toward an easier method in the future.

  1. Add a bank account named Consignments:
    1. Choose Lists > Chart of Accounts.
    2. Click Account and choose New.
    3. Select Bank and click Continue.
    4. In the Account Name field, enter Consignments. Click Save & Close.
  2. Set up your seller as a customer:
    1. Choose Customers > Customer Center.
    2. Click New Customer & Job and select New Customer.
    3. In the Customer Name field, enter the name of your seller.
      • Important: Point of Sale already created your seller as a vendor during the consignment process and they already exist on your names list. You will have to choose a non-identical name in order to save. Considering usingĀ Seller Name – Customer or Seller Name – C.

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