Process Consignment Goods

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Overview

ACR have developed a suggested process for handling the Receiving, Stock Receipting and Sale of Consignment goods. This process will allow for tracking what stock is held still on consignment, what stock is has been moved from consignment to sale stock and what stock has moved between consignment and sale stock to be able to reconcile to a supplier invoice.

Setup

1. Setup Stock Areas 2 and 3. If you do not already have multiple stock areas, 3 will be needed for this process. If you need additional stock area’s setup please speak with an ACR Trainer for further information.

  • Stock Area 1 is your regular sale stock.
  • Stock Area 2 is for Available Consignment Stock
  • Stock Area 3 is for Supplier Consignment Stock

Note; any Stock Area numbers can be used for this process. It is not limited to Stock Area 2 and 3.

2. Setup two Transfer Destination Accounts in Transfer Destination Maintenance. A suggestion

  • “Consignment Goods Received” with a Stock Area of 3
  • “Consignment Goods Transfer” with a Stock Area of 1

Stock Transfer Destination

Note; all stock transfers are processed through Point of Sale and must originate from Stock Area 2.

Process Consignment Goods

1. When Consignment goods are received and are being entered into the ACR system the following process can be followed. Transfer all goods in using negative quantities.

  • Open Point of Sale
  • Change the Stock Area to Stock Area 2 (use the ;A2 command)
  • Set Point of sale to transfer mode and use Consignment Goods Received. (use ;T to enter transfer mode)

goods receieved from supplier transfer

  • Enter the product code for the product being received on consignment.
  • Enter the quantity of the consignment stock being received as a negative figure.

Recieving consignment stock

  • Add any additional products if receiving more than one product on consignment then complete the transfer.

2. Goods Transferred for use.

  • Open Point of Sale
  • Change the Stock Area to Stock Area 2 (use the ;A2 command)
  • Set Point of sale to transfer mode and use Consignment Goods Transfer. (use ;T to enter transfer mode)

Goods moved to SA1 for sale

  • Add additional products if moving more than one product from consignment stock to stock for sale then complete the transfer.

3. Selling Goods to Customer

  • Goods that have been moved from consignment to stock for sale can be sold to a customer like any other product. Leave the Point of Sale screen in Stock area 1 as normal and add the Product ID and complete the sale as you normally would.

End of Month Consignment Goods Reconciliation

End of Month reconciliation – Amount Supplier should charge.
An end of month reconciliation report can be created in report generator using the following fields:

Print list:

  • Product Id – From the Product Drop Down
  • Product Description – From the Product Drop Down
  • SA 2 SOH – From the Product Drop Down
  • SA 3 SOH – From the Product Drop Down
  • (1-“SA 3 SOH” -1)-“SA 2 SOH”= – Create this in the Function generator.
  • Cost – From the Product Drop Down if desired.

Sort List:

  • Add the field you would like to sort the report by

Qualify List:

  • Add the fields that will allow you to refine the report to only the products you receive on consignment.

Reconciliation report

Creating the function.
From the Function drop down, select the Add button to enter the function creation screen. Select the Open bracket and then add the number 1. Select the Minus symbol (-) and Add “SA 3 SOH” from the Product drop down. Add then the Minus symbol (-) again and the number 1 followed by the close bracket. Select the Minus symbol followed by “SA 2 SOH” from the Product drop down select the equals symbol (=) and select the OK button.

Process Supplier Invoices

1. Process Suppliers Invoice – Stock Receipt, Invoice with Goods, Stock receipt to stock Area 3.

  • Complete a Manual Stock receipt for the invoice provided by the supplier. The Stock Area on the Stock Receipt needs to be set to Stock Area 3 for Consignment goods.

Stock receipt suppliers invoice

Stock Movement Example

Result:

  • Stock Area 2 should always show the Quantity and Value of Consignment Stock Unused. (A stocktake value for the supplier).
  • Stock Area 3 biased by -1 less Stock area 2 will always show the quantity and value of consignment stock used and yet to be charged y the supplier.
  • Stock values will always be correct from an accounting perspective.
  • If the supplier’s invoice is ever different too (2) above. A Stock movement report on Stock Area 2 transactions for the month will provide an audit trail.