I have another inventory question regarding how to value consignment items in inventory. In my sales world, these items sell basically on Ebay. This means there is a good chance the selling price will not be what I am expecting. However, I do inform all my consignment customers that I take 50% of the sales price, whatever it is. How do I put these items into Inventory and adjust the price once the sale is made?
Thanks in advance!
Consignment items are not inventory, because you don’t own them and have no investment in them. There have been discussions of this in other forum topics, such as Sales Order - Summary field - #10 by mjc. Most of those were from the perspective of someone placing items on consignment. In your case, you are merely acting as a sales agent for someone else. Your 50% cut is simply a sales commission. So when something sells, you can just Receive Money in a bank or cash account, allocating the transaction to an income account named something like Commission sales. Or, you can issue a sales invoice to the consignor for your commission.
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