Try ERPNext Buy Support Partners Foundation

Managing Consignments

Hi There,

Is there any option in ERPnext on Managing Consignments?
We are currently having issues on how we are going to manage consignment items from some of our suppliers.
Usually, we are receiving stock from them without cost since market prices of items are changing.
In this case, cost will be based only on current market price once the item is sold.

the issue here is that we want to have record of these items in our system to show that we have it in stock (most were serialized items).

Currently, we can only receive items in system by making purchase order and purchase receipt, but since it is without cost in the beginning, if we want to sell the item, then there will be no cost(no cost of sales). And supplier will give us only the Invoice once we sold the items.

And if we receive the items without cost, it will affect our stock valuation. Can anyone help us with this?
Thank you…

How about creating a separate company called consignment, since the inventory is not yours, but you still want to record it. I believe the items themselves would still be shared in both companies, so I don’t think you would have to re-create them, but the quantities will be in the consignment company. When you sell it, you could do it in the consignment company, and then record both transactions in the main company when you have all the information, like the supplier invoice and costs. I believe that you could set the inventory to allow negative quantities in the consignment company, if you want. If you want to do a financial statement at the end of the period or year, you would have to accrue the sales which you could do by journal entry, and reverse. You should be able to produce a report from the consignment company. (The accountant will know how to do this). Would that work?

@ai_me
Please check

https://frappe.github.io/erpnext/user/manual/en/stock/tools/landed-cost-voucher
https://erpnext.org/docs/user/manual/en/stock/tools/landed-cost-voucher

If you are concerned about the landed cost (shipping charges, import duty etc), which make you delay to enter the rate in the Purchase Receipt, then you can add those cost after making Purchase Receipt. To add those cost after submitting Purchase Receipt, use Landed Cost Voucher document.

1 Like

My company have multiple branch with a specific warehouse. can i create another Child Warehouse as “Consignment Sales” for user to perform Consignment Item Entry.

Consignment sales must only track only profit into the account.

eg: Item cost : $456:00
selling price : $625:00
profit: $169

Purchase and sell rule:
Seller(my company) dont pay anything for items on that warehouse.
Supplier only can get the payment of cost money when goods are sold,
Only profit are trackable on my company’s ledger.

Any idea that can make this kind of management happened.? Thanks!

Did you get answer to this query?