Start a new topic

Consignment (Consignee) Sales/COGS Reporting

Hi Guys,


I find DEAR's advised steps for managing consignment stock (as consignee) pretty straightforward, but it does not give a good outcome at all when looking to see COGS by each Sale made of those products.


I understand title to stock doesn't transfer and all that - but the reporting is wrong because every single sale shows $0.00 as COGS as you are bringing the products into stock with this unit value, and only processing the Purchase direct to COGS. This effectively means you can only report on Sales / COGS / GP on a periodic basis out of your accounting system.


I have been playing around with a potential process as follows:


1) Purchase Invoice the stock in - with an additional charges line to reduce invoice total to NIL


DR Consignment Stock (Bal Sheet)
CR Consignment Stock Purchase (Bal Sheet)


2) Sale (COGS entry only below)


DR COGS

CR Consignment Stock (Bal Sheet)


3) Actual Purchase Invoice to Supplier for what was sold


DR Consignment Stock (Bal Sheet)

CR Accounts Payable


I haven't tested this properly but interested in people's thoughts. I need a way that we can show COGS by sale. What I worry is that the two balance sheet accounts that should be balancing each other out would get out of whack over time and not make sense due to varying unit costs.


Thoughts?

Login or Signup to post a comment