Purchase the consignment inventory at $0. Prepare a purchase order for the consignment stock items received. Prepare a purchase for consignment stock received For the Asset Account for Item Inventory, select the asset account created above. Select the options I Buy This Item, I Sell This Item and I Inventory This Item. To create items, go to Inventory > Item List > New. It's a good idea to use the same item number as the existing item, but preceed it with the letter 'C' to identify it as consignment stock. You'll need to create an asset account to track the value of your consignment stock ( Accounts > Accounts List > Asset tab > New).Įach line of inventory on consignment will require its own item number. At this point, a sale occurs and the goods pass title.

For this reason, consignment stock is typically shown as an asset in the consignor's books until the consignee sells the goods. The title to the goods remains that of the consignor until such a time as the goods are sold by the consignee. If you need clarification, check with your accounting advisor or post your question below.Ĭonsignment stock, by definition, is a marketing arrangement whereby physical control of merchandise but not title, is transferred from one business (the Consignor) to another (the Consignee). This article is provided for guidance only - it might not be suitable for your business requirements. The example we'll use is a company who chooses not to purchase their stock outright, but instead sells stock provided by another company on a consignment basis. Setting up your MYOB software to track consignment stock usually requires assistance from an accounting advisor.

Consigned inventory meaning