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For consignee, the main advantage is probably in minimizing the risks: the consignee does not need to pay for goods until the goods are sold and can return the unsold goods at no cost.
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Enabling the functionality
To enable this functionality, select the Issue Goods for Consignment Sales option on the Administration > Settings > Sales form. Also, if you are going to use discounts in such sales, select the Enable Discounts and Markups in Consignment Sales option on the same form.
Moving
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goods to a
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consignee
To record the goods moved to the consignee location, create and post the following documents.
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Prepayments (if received from consignees) can be processed as usually, by creating Bank Receipts or recording Cheques Received. Then, when the entity is billed for commission, a prepayment can be applied to the Consignee Report or the Invoice Received (commission).
Recording the
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consignment sales
On the contract expiration, the entity creates the following documents.
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This document registers the input VAT for the tax amount due on commission to be paid to consignee. It can be generated from the Consignee Report or created manually.
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Recording goods returns
If some goods were returned from end customers through the consignee after the sales had been recorded, commissions paid, you need to create the following documents to register the returned items.
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You can create this document with the Customer Debt Assignment transaction type to adjust the consignee's debt for the amounts of returned goods and overpaid commission.
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Using reports for details on items in consignment
The information about the goods transferred for consignment sales is reflected in the reports in the Warehouse module.
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