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When you received the invoice from customer for the items at the consignment location is sold, post the shipment and invoice by Sales Order. The item to be ship from the Consignment Location
| 4.1 | Replenish inventory to customer | |
|---|---|---|
Dr, Customer Consignment Inventory Cr. Inventory |
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| 4.2 | Post Consignment sales | |
Dr. Cost of Goods Sold Cr. Customer Consignment Inventory Dr, Account Receivable Cr. Sales |
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Vendor owned Inventory
1) Create Location for separate the inventory that belongs to vendors
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Inventory Account / Inventory Account (Interim) / Inventory Accrual Account
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 2160 Consign-In, 2161 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
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The G/L to be posted as below, there are not affected on the Balance Sheet.
| Process | Transaction | Dr. | Cr. |
|---|
| Post Purchase Receipt (100pcs) | Post Receipt | Entry 1 | Inventory (Interim) G/L A/C: 2161 G/L account according to Inventory Posting Setup | Inventory Accrual (Interim) G/L A/C: 2161 G/L account according to General Posting Setup |
4.2 Post Purchase Invoice to the Vendor when you sold the item. (i.e. Post Purchase Invoice for the sales quantity.)
| Process | Transaction | Entry No | Dr. | Cr. |
|---|---|---|---|---|
| Post Purchase Invoice for the Sales Quantity (10 pcs) | Post Invoice | 3474/3475 | Inventory Accrual Account (Interim) G/L A/C: 2161 G/L account according to General Posting Setup | Inventory Account (Interim) G/L A/C: 2161 G/L account according to Inventory Posting Setup |
3476/3477 | Inventory G/L A/C: 2120 G/L account according to Inventory Posting Setup | Direct Cost Applied G/L A/C: 7190 G/L account according to General Posting Setup | ||
3478/3479 | Purchase G/L A/C: 7110 G/L account according to General Posting Setup | Account Payable G/L A/C: 5410 G/L account according to Vendor Posting Setup |
