Consignment to Invoice

[Drew Sanderson]

I have been thinking and reading extensively but cannot figure out how to do consignment sales.

Each item being sent out on consignment is unique. No two items are ever alike.

Any good places to read a how to on the subject would be great. Any post at all about this would be fantastic.

Thank you in advance.

Drew

[Tim W]

Hi,

What do you need to do regarding consignment sales? From an accounting standpoint the consignor is simply a commissioned deal maker between the seller (consignee) and the purchaser. Inventory is a non-issue, since the goods belong to the consignee. The uniqueness of the items is really of no relevance. The transaction is simply that of a service sale, priced by negotiated % rates.

Sales tax can cause an issue since the consignor must collect and remit to the taxing authority. If that is the case, then the invoice needs to be set up to include the entire sale amount and calculate the appropriate tax. The amount paid to the consignee becomes the cost of goods sold. and profit is derived as sale amount - cost of goods sold.

So, I guess that a little more information would be in order. What do you wish filemaker to do?

HTH

Tim

[Drew Sanderson]

Thank you for the response. I will try to add clarification.

The products are sent to each dealer.

The dealer is issued a "memo" which is structured identical to the invoices.

When one of the products on the memo is sold the dealer is invoiced. If it is not sold, the dealer returns the item.

Sales from multiple memos are not put on one invoice. Instead each memo has one invoice.

If any of the items are paid for within 10 days of memo, the dealer receives 2% off the invoiced price.

Payment is due 30 days from memo or the item must be returned.

Inventory is an issue and must be tracked.

Each item is unique.

Inventory status for each unique item must include: in stock, memo, invoiced, and paid.

I need to track the percent of items on each memo that the dealer sells/buys.

Each dealer is assigned to a company representative. A percentage of profit from succesful purchases from the dealer is paid to the representative.

I tried to keep this simple and provide need clarification. If anything I said does not make sense please let me know.

Thanks for the help!

Drew

[Tim W]

Sorry for the delay in getting back to you, very busy these days.

O.K.

Assumptions:

1. You are the owner of the item (or your client is)

2. Sales tax is taken care of by the dealer.

3. Inventory list would list items up for sale & their locations.

4. You need to track sales of your (your client's) items.

Issues:

1. Traditional inventory methods consider cookie-cutter products for sale. This will not work because of the overhead of setting up an item when the quantity will never be more than 1.

2. Memos are simply a change in an item's status, in-stock to sold.

Idea:

The item is the thing. Track the item. An item's table to log each item and an activity table to log each activity status change to that item. Reports can be run against the ativity table to produce whatever information you wish to see.

HTH

Tim