Goods that you've given to a consignment partner to sell will remain your
property until they are sold. That's why all you have to do is transfer the issued
goods in the stock accounts to a different stock account. If you're dealing with
commercial goods, it would be appropriate to transfer posts from account 6600 -
Merchandise in Own Store to account 6610 - Merchandise in Third Party's Store.
On the basis of consignment reports from your partner, you'll present an invoice
for the goods sold.
1. Issue to a Consignment Partner
Goods that you've issued to a consignment partner are still your property.
That's why you'll record the issue of goods using a transfer document, for
example predefined document type
260.
The recipient of the goods will be your consignment partner, and will appear in
the Subjects register as both a customer and a
warehouse - this will enable you to track your stock with a given consignment
partner. Select stock tracking for the consignment partner and, of course, a
suitable stock valuation method.
Using automatic posting of material
consumption, you'll post the transfer of value from one warehouse to
another.
2. Invoicing Goods Sold
As you've seen in the short introduction (see Material
and Goods Movements and Simplifying Material
Movements), there are two options for
continuing the process. On the basis of your consignment partner's report, you
can:
a) Use a transfer to return the goods to your main
warehouse, and then issue an invoice for goods sold. The document type used to
record the transfer of goods from your consignment partner's warehouse to your
main warehouse will be marked as Record Only, because it will not lead to any
posts.
b)
Issue an invoice for goods sold directly from your consignment partner's
warehouse.
Due to the particularities of posting consignment sales, you must (regardless of
which method you've selected) use a special document type, for example
predefined document type
3K0.
The easiest way to create an invoice from your consignment partner's warehouse
is to use the Add Movement function to select a
range of transfer slips, which you'll be unburdening, and check Not Added for
this DT in the Add box.
An overview of the lines will
produce information about the untransferred quantity and the actual stock in your
consignment partner's warehouse. Before adding, you can also change the quantity
to be invoiced for your consignment partner.

The invoice you've created for the final sale will cover the actual sale to the
consignment partner.
Automatic posting of issued invoices makes it possible to post receivables from consignment sales, income,
and taxes.
Using automatic posting of material consumption, you'll post reductions
in the value of stock and transfers between expenses.
3. Viewing Stock at a
Consignment Warehouse
You can view stock with a warehouse card or an
overview of current inventory for an individual
consignment partner.
Material Movement Reports can be used for a
more in-depth analysis of movements of stock in a particular accounting
period. This will show the initial stock, receipts and issues in the
period, and the stock at the close of the period valued by valuation
price. To do this, select the document types for transfers and invoicing
that you've used for consignment transactions, select your consignment
partner's warehouse, and choose a desired form for the report. You can
create and save a template for material movement reports of this kind.
Print out:
4. Analyzing Gross Margin
You can monitor the success of consignment transactions through a
gross margin analysis for
a particular consignment partner (that is, warehouse) by selecting the document
type used for the final sale.