Consignement Goods - Type K
Consignment goods - type K
It is typical for goods of type K - Consignement Goods that supplier remains owner till the goods are sold off. That is why such goods are not received on accounts for recording stock value, but rather monitor the value of received and sold stock on off-balance-sheet accounts. Because goods received on consignement are sold at the same time as other goods form regular stock, it will be received at regular warehouse, where warehouse card is available together with the item stock.
Payable to consignement supplier is recorded when selling goods.
1. Receiving on Consignment
Goods are received on consignement by using the internal document type for example from the predefined document type 170.
For goods received on consignement you create new item IDs. In such an event it is required that you select the item of the consignement type - K (e.g. predefined type 100).
Because the document in question is of the internal type, it does not appear in tax record. It is used so that you can adequately record receiving of goods to stock, and not the payables.
Using the automatic posting of material consumption function you post goods received to off-balance-sheet accounts.
2. Consignment Sales
Consignement goods are usually sold together with the goods purchased in reselling, etc. That is why you can monitor issuing of consignement goods using the same document type as for issuing goods in reselling. Use predefined document type 300.
Using automatic posting of material consumption to post income of consignment goods sales differently. Income is represented only by difference in price. The acquisition price for goods received on consignement represents payables of goods' owner.
The off-balance-sheet accounts are discharged using automatic posting of material consumption.
3. Consignment Declaration
Periodically (e.g. on a weekly, monthly basis, by decades), submit to the consignment subject notification on goods sold in cash.
By using the create consignment declaration to collect corresponding issues by date and document type IDs.
Collective shipping is created in the selected document type. There exists a predefined document type for collective shipping KO0 marked as record only. This invoice cannot be posted automatically and does not appear in tax records. It is used when you want to display or print data in form of consignment that is written off. That is, notifications should be made to the consignment subject on quantity and values of the goods sold.
4. Supplier's Invoice
On the basis of notification on sales (consignment declaration) the consignor sends you the invoice for goods sold. vYou can enter it as the invoice of the collective type which does not affect stock. But it does increase payables for the owner of goods. To create collective invoice use the predefined document type 151. The invoice is then created from automatically created collective invoice by using the add function - see collective receiving.
Post payable for VAT charged according to the owner's invoice to the account altready used in sale (by default: 2420) because you already posted the purchase price of goods received on consignment when automatically posting invoices issued. Post the entire amount of the invoice including VAT among the supplier payables (by default: 242). Both will be executed by using the automatic posting of invoices received.
This document appears in tax records and on its basis you can also create the invoice for owner payables. It is also used in outstanding items overview and of course in posting the payment of supplier payables.
5. Available Stock of Consignment Goods
Generate it by displaying warehouse card or the function for browsing currently available stock.
To get a more detailed analysis of stock movements in specific accounting period use the material movements report. The latter shows initial status of consignment goods stock, receiving and issues as well as inventory at the close of period, evaluated according to the valuation process.
It is mandatory to use supply date and not invoice date as criteria!
Check the internal receiving and invoicing document type by using which you can monitor consignment goods movements. Then you select item type K - 100 as well as the corresponding report type. Select internal receiving document type from commissionaire and issue document type when the goods are sold. In such an event you use a predefined report template for consignment report.
6. Gross Margin
Monitor if consignment is successful by analysing gross margin for item type K - Consignment and from the selected document types of the final purchase/sale.
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