QBO: Consignment Sales Within QuickBooks Online

You can track consignment sales made, how much you have paid out to consignors, and see a report of these figures.

There are five basic steps to this procedure

• Set up your consignors as vendors/suppliers and classes
• Create separate income accounts for tracking the consignment sales
• Set up the consignment item and tie to the consignment income account
• Enter sales and payouts using the appropriate consignment items and classes (consignors).
• Create a consignment report

To set up the consignors

1. Go to Vendors/Suppliers on the left navigation menu.
2. Click New Vendor/Supplier and setup the consignors information.
3. Click Save.
4. Continue this process until all consignment vendors/suppliers are setup.

Next you will want to set up the consignors by Class for reporting purposes.

Turn on the Class Tracking feature

1. Click the Gear icon and choose Company Settings.
2. Click Company from the left menu bar.
3. In the Categories section click on the Pencil Icon to edit the section.
4. Check the box next to Track classes.
5. Click Save then click Done.

To set up the Class(s)

1. Click the Gear icon and choose All Lists.
2. Click Classes.
3. Click New and for class name input the consignor.
4. Click Save.
5. Continue this process until all consignors are created as classes.

Setup the Consignment Sales/Payout Accounts

1. Click the Gear icon and choose Chart of Accounts.
2. Click New.
3. For Category type: select Income.
4. For Detail type: select Sales of Product Income.
5. For Name: type Consignment Sales.
6. Click Save.

~This will return you to the Chart of Accounts~

1. Click New.
2. For Category type: select Income.
3. For Detail type: select Sales of Product Income.
4. For Name type Consignment Payouts.
5. Click to mark the option Is sub-account and select the Consignment Sales income account.
6. Click Save.

Setup the Consignment Sales Item(s)

1. Click the Gear icon and choose Product and Services.
2. Click New.
3. Choose Service Item (Using Inventory Items requires a different set of procedures).
4. Input the Name of the consignment item.
5. For Account, list the Consignment Sales income account.
6. Click Save.

Sell your Consignment Item(s)

Make sure when you fill out the Invoice or Sales Receipt the following is done:

1. The consignment item is used for the sale.
2. The appropriate consignor is selected under Class.

When you record the payment check to the consignor make sure:

1. The Consignment Payout account is used to record the payout amount
2. The consignor’s class is listed on the same line as the payout account.

Create and Save a Custom Report

Once the transactions are done in this way, you can create and save a report to see a breakdown of the consignment sales and payouts:

1. Click Reports from the left navigation menu.
2. In the “Go to report” search bar, enter Profit and Loss by Class.
3. On the line Total Consignment Income, click the amount under the Total column.
4. Click the Customize button.
5. Set the Transaction Date range so it will include all the sales and payouts you want to report on.
6. Under Rows/Columns, set Group by to Class.
7. Click Run Report.
8. This will take you back to the report, click Save Customizations.
9. For Name input Consignment Sales/Payout report.
10. Click OK.

Now you will have this report available under your list of memorized reports. You can access memorized reports directly from the Reports menu. This report will group sales, payouts and ending income by each of the consignors; as well as a total income by all. If you have non-consignment sales they will be grouped under the Not Specified class.