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Retail Vendor Consignment Accounting ( selling & return)

Jan 25, 2017 at 10:47 PM

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Hi Experts,

I had configured the retail consignment for POS and while I am testing a full scenario for selling and returning of the consignment products from POS, i got confused from the accounting document that had been posted, specially it depend on if you had you own stock beside the consignment stock or even if your consignment material have a moving average price.

let me explain with examples:

case 1:: No own stock and zero average price, consignment stock with 90 USDi nfo record

1.1. selling from POS 251 K

(90-) Consignment GR/IR

(90) COGS

1.2. Sales return from POS 252

no accounting cause there no average price

1.3. transfer from own to consignment 412 K

(90) Consignment GR/IR

(90-) Gain/Loss from consignment

case 2:: there stock with average price 90 USD, consignment stock with 90 USD info record

2.1. selling from POS 251 K

(90-) Consignment GR/IR

(90) COGS

2.2. Sales return from POS 252

(90) Stock

(90-) COGS

2.3. transfer from own to consignment 412 K

(90) Consignment GR/IR

(90-) Stock

case 3:: there stock with average price 100 USD, consignment stock with 90 USD info record

3.1. selling from POS 251 K

(90-) Consignment GR/IR

(100) COGS

(10-) Gain/Loss from consignment

3.2. Sales return from POS 252

(100) Stock

(100-) COGS

3.3. transfer from own to consignment 412 K

(90) Consignment GR/IR

(90-) Stock

my questions:

1- why when doing sales returns the consignment articles doesn't return directly to the consignment stock and use the consignment stock determination as it did when doing 251?

2- for the case 1, because the consig. article doesn't have average price, in return there no accounting document which mean there no post on the COGS account and it always post gain/loss while you transfer back to consignment, i think this case is not correct in accounting.

3- case 2: is the perfect one except you have always make sure you maintaining the average price same as the consignment cost which is not a practical way.

4- case 3: while selling it calculate the COGS from average price not the consignment cost ! and when transfer it back to the sconginment stock it transfer with the consigment cost leaving additional 10 USD in stock ?? is this logic ?

i don't know if this is a standard behavior or missing configuration ?

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