Consignment sale process for consignor

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Consignment sale process is a process where a company sends products to a counterparty so that the counterparty sells or uses them. The products are stored at the counterparty's warehouse, but the company retains the ownership of the products.
The counterparty can consume the products from that warehouse at any time. The company bills the counterparty only for the quantity of products actually consumed. If the counterparty sells the products, the company pays a sales commission for the products sold.

In this process:

• The company is a consignor.
• The counterparty is a consignee.
• The products sent to the counterparty are consigned products.

1C:Drive supports the following steps of the consignment sale process:

• Set up the consignment sale process
• Issue products to a consignee
• Record consignee's sales
• Record payment from a consignee.
• Record unconsumed product return from a consignee
• Monitor consignment sales

Setting up consignment sale process

To set up the consignment sale process for a consignor:

• Go to Settings > Sales. Then under Consignment sales, select the Send goods on consignment checkbox.

Issuing products to consignee

When you issue products to a consignee, create a goods issue and set its Operation to Transfer to a third party. For details, see Transfer to third party.

You can also print a delivery note based on the goods issue and send it to the consignee. For details, see Printing goods issues.

Recording consignee's sales

When a consignee informs you that the consigned products have been sold or used, create an account sales from consignee document. To save time on data input, you can generate the document from the original goods issue. In the document, specify the consignee and the product details including the quantity sold or used and the amount to be paid for them by consignee. If you need to record a sales commission received by the consignee, select the Commission is withheld checkbox and specify the sales commission details. For details, see Creating account sales from consignee documents.

After you post the account sales from consignee document, the consignor's accounts receivable are increased and the consignee's balance is adjusted. The sales commission (if any) is withheld from the accounts receivable.

Recording payment from consignee

When a consignee pays for the sold or used products, create a payment document: bank receipt or cash receipt. Set its Operation to Payment from customer. To save time on data input in a payment document, fill the data from the original account sales from consignee document created for a consignee. To do this, specify general details in the payment document, then click Select or Fill on the Payment allocation tab. For details, see:

• Payment from customer by bank receipt
• Payment from customer by cash receipt

Recording unconsumed product return from consignee

If a consignee sells or uses only some of the consigned products, they can return the remaining products. In this case, create a goods receipt and set its Operation to Return from a third party. For details, see Return from third party.

Monitoring consignment sales

To monitor consignment sales as a consignor, use the following reports:

Report	Description	How to open
Stock transferred to third parties	Shows opening balance, products transferred to consignees, products consumed by consignees, and closing balance.	Go to Warehouse. Under Reports, click Stock transferred to third parties. Specify the report settings. Click Generate.
Statement of account	Shows opening balance, debits and credits, and closing balance for a certain period by consignee.	Go to Sales. Under Reports, click Statement of account. Specify the report settings. Click Generate. You can also open the report from a certain account sales from consignee document. This report shows data only by consignee specified in the document. To open the report: Go to Sales. Under Sales, click Account sales from consignees. In the Account sales from consignees list, double-click a document line. In the document link bar, click Statement of account.
Customer balance	Shows opening balance, amounts charged and paid, advances received and cleared, and closing balance for a certain period by consignee.	Go to Sales. Under Reports, click Customer balance. Specify the report settings. Click Generate.
Net sales	Shows the quantity, net sales, COGS, gross profit, and margin by product.	Go to Analysis. Under Sales, click Net sales. Specify the report settings. Click Generate.

Consignment sale diagram

The diagram below illustrates common steps of the consignment sale process for a consignor.

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