11. Consign-in - Inventory Account Handling

Four common scenarios of consignment inventory:

Vendor Owned Inventory - use for handling the consignment sale for consignor 

Vendor owned Inventory

1) Create Location for separate the inventory that belongs to vendors (e.g. Z0-Consign)

2) Create a G/L account for the location.  It can have a specific consignment inventory account in the balance sheet, (e.g. 13198, 13199)

3) The inventory posting setup is then defined to have the expected inventory value on a separate consignment inventory account in the balance sheet.

For Example:

Balance Sheet Account (Setup in Inventory Posting Setup) - G/L Account 13199 Consign-In, 13198 Consign-In (Interim)

P&L Account (Setup In General Posting Setup) - The Invt. Accrual Account (Interim) to be same as the Inventory Account for Consign-In (Interim).  

4) Transactions

4.1 Goods received from Vendor

Create Purchase Order and post the Receipt for the quantity.

The G/L to be posted as below, there are not affected on the Balance Sheet.

4.2 Post Purchase Invoice to the Vendor when you sold the item.  (i.e. Post Purchase Invoice for the sales quantity.)