V8 - Consignment inventory
In SOS Inventory, the handling of consignment inventory—goods transferred by the owner to another party, typically an agent hired to sell the goods on the owner’s behalf—depends on whether you are the owner (consignor) or the agent (consignee).
Account and item setup for consignee
For the consignee, consignment inventory requires creating the correct accounts in QuickBooks Online and linking consignment items to the correct accounts. Sales inventory assets should be in a separate account from your consignment inventory assets. In addition to creating separate inventory asset accounts in QuickBooks Online, it is very important to assign the correct asset account to that item when it is defined in SOS.
Once the creation of the lines of accounting are complete, and you have created items in SOS and chosen the correct accounting settings, you can then receive your consignment items. As the receipt of the material will create an open payment to the consignor, you will have many open payments in QuickBooks Online until the time that the item actually sells.
Consignment location setup for consignor
If you are the consignor, create a separate, non-nettable location (or locations) for your consignment inventory. This location will be on your books because the items are in your inventory.
Consignment items are classified as inventory assets. Designating the location as non-nettable will protect consignment items from being inadvertently added to your available-for-sale quantity and sold from your location.
When items are sold from the consignment area, transfer them to a nettable location, create an invoice to bill the consignee and a shipment to close the sale.
If no possibility exists for the items to be oversold from your default location, the alternate location does not need to be designated as non-nettable.