a. For every consignment client you create separate location Settings->Reference Books->Locations
b. You send stock to consignment client. Inventory->Transfers. Move from main warehouse to consignment location
c. Once a month you get sale report from consignment clients. Create Sale order and use consignment locations to pick the stock
d. To replenish on their site you will use Inventory-> Product availability report sorted by locations
2. On a summary level, I also need to be able to keep track of my overall stock levels in order to put in purchases for more stock when it runs low. There is a barcode and batch number attached to each item, so the purchase/sale process needs to be able to be robust enough to take volume. This is government legislation.
This is generally available now and won't be different with consignment locations. Use Inventory-> Product availability report, just hide Location column. With regards of volume we don't impose any limitations. Though Xero recommends their software for businesses with 1000 invoices per month max.
3.Taking into account the above, I want to be sure that my accounting system (Xero) is able to track the Cost of Goods Sold and Total Inventory on hand, as it is consumed. This is very important, as it affects my operations and GST.
Ideally, I would want to track Inventory at each consignee at the Xero level but since DEAR only syncs one inventory account so I know that is not possible.
Cost of Goods Sold will be copied to Xero every time when shipment is authorised in DEAR. Total SOH will changed in Xero every time when you authorise sale/purchase invoice. See item 1 on reporting by consignment clients
Can you please send me your recommended method of managing consignment stock that I receive from my suppliers?
Typically I would reconcile consignment stock at the end of each month and send a purchase order to my supplier for any stock sold in that period. I would like to invoice my clients for sales of this stock during that period as well.