Accounting for Consigned Items or Consignment Sales

Accounting for Consignment Sale is not yet available in NetSuite. A workaround is however provided. To account items transferred to Consignment Location and record sale in a future date (e.g. after 60 days), perform the following:

1.      Navigate to Customization > Forms > Transaction Forms.

2.      Click Customize on one of the sales order forms.

3.      On Screen Fields tab and Main subtab, change the label for Doc. No to Consignment (or whatever is preferred).

4.      On Printing Fields tab and Header subtab, change the label for Form Title to Consignment.

5.      Enter a Name for the form. e.g. Consignment Sales Order

6.      Click Save.

7.      Navigate to Setup > Company > Locations > New.

8.      Create a Consignment location and enter necessary information on the same.

9.      Click Save.

To record a Consignment transaction, the sales order form customized above must be used. The same Location earlier created must likewise be assigned on the transaction.

After creating the consignment transaction, process an inventory transfer to move inventory from Main location to Consignment location. To do this, perform the following:

1.      Navigate to Transactions > Inventory > Transfer Inventory.

2.      On From Location field, choose the Main inventory location.

3.      On To Location, choose consignment Location.

4.      Enter the items and quantities

5.      Click Save.

This eventually allows item fulfillment and billing of sales order from the Consignment Location when sales occurs (e.g. after 60 days). In the meantime, the inventory is sitting in Consignment Location and is reduced as sales occur.

Note: Users may attach their case to Enhancement 5224: Ability to manage consigned inventory and create costing entries only when item is removed from non-owned locations.