Accolent ERP allows a distributor (“Consignee”) to receive goods on consignment from a consignment vendor (“Consignor”), hold them for sale and then to make consignment sales to customers. The Consignee receiving goods on consignment records the goods in the product master and in inventory, but these goods are carried at zero value reflecting the fact that they are owned by the Consigner. Upon recording of a consignment sale, the Consignee records a pre-determined commission and creates a payable to the Consignor for the sales price less the commission.
Consignment Product
- Under Group IRG-Irrigation, set up new Category 800 for Consignment Sales
- Use the Category GL Override to specify 2 GL Accounts 400-02 for Commission on Consignment Sales and 210-06 Accounts Payable Consignor (104)
- GL Account 400-02 is an income-type account and will record the Consignee’s commission earned on the consignment sale
- GL Account 210-06 is a liability-account that records the payable to the Consignor upon a consignment sale
- Specify the split between GL Accounts 400-02 and 210-06; the percent allocated to GL Account 400-02 is the commission rate on consignment sales for this Category
- Set up Product 37HPDPU003 37 HP Towable Diesel Powered Kubota Engine Berkeley Pump with 50 Gallon Fuel Tank and Heavy Duty Trailer
- This Product is on consignment and so has Class=CS (consignment sales) – this will use the Category Override GL posting rather than the typical sales GL posting
- Set up the Consignor Vendor as 104 Global Industrial Supply
- Product costs (Standard, Alternate and Average) are zero since the consignment product is owned by the Consignor
Receive Goods on Consignment
- Create PO C8533 to Consignor Vendor 104 for Product 37HPDPU003 x 5 EA at $0 Alternate Cost (Standard and Average Cost will also be $0)
- Receive PO for Product 37HPDPU003 x 5 EA at $0 Alternate Cost
- Note: Product CS00345 will be carried in inventory at $0 since this is a consignment product that is owned by the Consignor
Sales of Goods Held on Consignment
- Product 37HPDPU003 has List Price of $20,000 EA with a 15% commission to Consignee
- Now, create order 62255 to sell 2 EA to Customer Drip Works, which typically gets a 2% discount; edit price to sell at list price 2 EA x $20,000 = $40,000
- Move order to shipping then to invoice
- Look up GL posting of transaction
- Records the Consignee’s commission income of $6,000 on the sale
- Also records the payable to the Consignor of $34,000 equal to the sale price less the commission
- Look up the GL Account 200-06 to see details of amounts payable to Consignor
- Ledger Card for Product 37HPDPU003 shows sale transaction and remaining inventory = (5 – 2) = 3 EA
