jdupre
01-26-2005, 09:46 AM
I am a consignor: I send my stock items to others to sell. I get paid, eventually, minus expenses. (The consignee charges me irregular amounts to cover their expenses.)
I could enter an invoice each time I transfer inventory, and apply payments to past invoices as payments come in. But under the acrual method, an invoice counts as payment when it is created, and I would rather not have that income "counted" until I actually sell an item and recieve payment. And then there is the issue of consignee's expenses which would always remain unpaid on the invoice.
How should I track the reduction of inventory when an items are shipped on consignement, and then enter the income and expenses on the consignment sale when it is recieved?
- Joe
[Background: Items are music cds. They are sent to distributors who resell at a wholesale price. I am paid periodically (after my account with the distributor reaches a specific point). Profit from the consignment sales (minus manufacturing costs of the CDs) is split between myself and the musician. So I need to track the inventory as it gets sent to the distributor, the payment receieved from the distributor, and the division of the profit between myself and the musician. ]
I could enter an invoice each time I transfer inventory, and apply payments to past invoices as payments come in. But under the acrual method, an invoice counts as payment when it is created, and I would rather not have that income "counted" until I actually sell an item and recieve payment. And then there is the issue of consignee's expenses which would always remain unpaid on the invoice.
How should I track the reduction of inventory when an items are shipped on consignement, and then enter the income and expenses on the consignment sale when it is recieved?
- Joe
[Background: Items are music cds. They are sent to distributors who resell at a wholesale price. I am paid periodically (after my account with the distributor reaches a specific point). Profit from the consignment sales (minus manufacturing costs of the CDs) is split between myself and the musician. So I need to track the inventory as it gets sent to the distributor, the payment receieved from the distributor, and the division of the profit between myself and the musician. ]