Consignment Sale


M

Mark Joya

Hello,

How can I do consignments using SBA? For example, I have a customer and I
consigned 10 prepaid cards (meanining, the cards are still considered not
sold). Then when he re-orders, that's the time I'll consider the previous
consigned cards as sold.

Now the problem is, what if the contract was cancelled and all the consigned
cards where returned by the customer, which is legal since it's not
considered sold. How can I do this in SBA?

Thanks!
-Mark Joya
 
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M

MS: Brady Sondreal

Hello Mark,

Thank you for posting your SBA question for the group.

There are a couple of ways to handle consignments in SBA. Let's assume
that you want to keep track of both the quantity and value of the cards by
customer. In this example, we'll assume that the cards represent a service
that you sell/provide but do not purchase from a vendor.

First, set up a new current liability account named "Deferred Revenue" for
tracking unsold consignments to customers. Then create a new service item
"Consigned Cards" with this Deferred Revenue account selected for the
Income Account field. Create a second service item "Prepaid Cards-sold"
that has all the same price and other attributes as the first item except
that the Income Account is your usual income account. If you pay a cost
for these cards, you can add the purchase and standard cost details to both
these item forms.

As you send cards to customers, create an invoice with the Consigned Cards
item in the grid. This tracks the consignments but does not create a
"sale" in the P&L. You should see postings to the Deferred Revenue account
from these invoices.

When it appears that the cards have actually been sold, edit the invoice so
that the "Consigned Cards" item is replaced with the "Prepaid Cards-sold"
item. This negates the posting to the Deferred Revenue account and creates
an actual sale. If you then determine that this was not a true sale, you
can either void the sale invoice or you can change it back to the Consigned
Cards item until the actual sale occurs.


Brady Sondreal
Microsoft Online Support Engineer

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Thread-Topic: Consignment Sale
thread-index: AcV97bm3noHwvCMHRlqpctPkHkETNg==
X-WBNR-Posting-Host: 203.131.191.183
From: =?Utf-8?B?TWFyayBKb3lh?= <[email protected]>
Subject: Consignment Sale
Date: Thu, 30 Jun 2005 20:34:02 -0700

Hello,

How can I do consignments using SBA? For example, I have a customer and I
consigned 10 prepaid cards (meanining, the cards are still considered not
sold). Then when he re-orders, that's the time I'll consider the previous
consigned cards as sold.

Now the problem is, what if the contract was cancelled and all the
consigned cards where returned by the customer, which is legal since it's
not considered sold. How can I do this in SBA?

Thanks!

-Mark Joya
 

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