Consignment Sales


K

Kalo Pedi

Hi- We have an art gallery that receives art on consignment. When it's
sold, we pay the consignor, and ourselves. Often there's a discount
which must be accounted for when paying the consignor, and must also be
noted for our business records.

What's the easiest way to account for consignment sales (as a
consignee). How can I account for a discount & have the discount apply
to the consigned item? I've read the stuff from QB, but it seems there
must be a better way.

Also, would it be better to set up my account as a "service
business" rather than a "retail business"?

Thanks!
 
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Consignment sales ARE complicated. Unless you use specialized
software, QB or any other general-purpose bookkeeping program will
require somewhat convoluted methods.

It makes no difference whether you choose "service" or "retail". That
choice merely determines what GL accounts will be automatically
created and whether or not Inventory features will be automatically
activated. Whichever choice you make you can later delete unneeded
accounts and add new ones, turn inventory on or off, etc.
 

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