How to handle consignment/sample items (products)

[CH DFW]

In our business we consign - provide samples to our dealers. We do not charge
the dealer for the samples and the samples continue to be owned/the proporty
of our company.
We need keep track of the samples, i.e. we need to know the 'inventory'
samples by each dealer.

How do we account for and track these samples?

We create a Quote and make it a Sales order when we deliver the samples, so
now we have a number of 'open' sales orders <not invoiced>.
If we invoice the Sales Order we end up with a balance on the account of the
dealer, which will not be paid - if we issue a credit for the Sales Order -
the samples are kind of out of the system and how do we then account for /
track the samples.

Does anyone have a similar situation and how do you all handle it?

Thanks. CH DFW

 

[Frustrated Ray]

We sell on consignment, We do the sales order, leave it open. We invoice
only the lines that are sold, and do returns on any that sent back. Also We
also made a word "Consignment Invoice" and post to a consigned inventory
account.