Some retailers allow an outside craftsperson or product developer to display
their merchandise in the retail store on a consignment basis, with the store
owner getting a percentage of each sale. For example, you might sell furniture
but allow an artist to display her artwork in your store. In return, you might
receive twenty-five percent on each sale. You can set up QuickBooks accounts
and items to track these types of consignment sales. Here's one way you can
track consignment sales:
In your Vendors list,
create a new vendor for each
Create an income
account called Consignment Sales to track the consignment sales separately
from the rest of the products you sell.
Create an other asset
account called Inventory on Consignment to track the inventory of the
consignment products you sell.
Set up consignment items for
each consignment product (or group of products) you sell.
Receiving items on
Selling a consignment
Paying the consignment