Step by step
Take stock on consignment
Receive goods that still belong to the supplier, see them under Consignment, where nothing is owed until they sell, and send back what does not sell.
Consignment is “Stock suppliers leave with you and are paid for only once it sells. Each sale adds the cost of the supplier’s units to consignment payable; their invoice for what sold moves it to accounts payable.”
At Baraka Wines and Spirits, Highland Spirits Kenya leaves 6 bottles of Napoleon VSOP Brandy 750ml at the Baba Dogo store on consignment. Beatrice Wanza, the storekeeper, receives them.
Receive the delivery as usual
Under Purchasing › Receiving, tap Receive goods and choose the order, as in Receive a delivery.
Steps 2 and 3 on one screen. Switch on Received on consignment
“The goods still belong to the supplier. They are on hand and sellable, nothing is owed on receipt, and the supplier is paid only for what sells (Purchasing, Consignment).” Kila shows the Consignment value instead of the value received, and there is no freight or duty to add.
Tap Record receipt
The receipt says Consignment stock: “These goods still belong to Highland Spirits Kenya. They are on hand and sellable; nothing was owed on receipt and no accounting entry was made. Each sale adds its cost to consignment payable, settled with the supplier’s invoice.”
Step 4. Read the receipt
Its Ownership is Consignment (supplier-owned), and under Accounting entry: “None at receipt: consignment stock is the supplier’s until it sells.”
Open Purchasing › Consignment
The cards add up what is Sold, not yet settled, Sold to date, Settled by invoice and the Supplier-owned on hand. Each supplier has a card, with each product’s Received, Sold, Cost of sold, Settled and Still on hand.
Steps 5 and 6 on one screen. When some has sold, record the supplier's invoice
The supplier’s card shows what is To settle, with Recent sales of their stock. When their invoice for what sold comes, tap Record supplier invoice: it waits until some of their stock has sold. The invoices are listed under Settlement invoices.
Send back what does not sell
On the receipt, tap Return to supplier. Whose stock is already Consignment stock (supplier-owned): “Supplier-owned stock goes back. Nothing was paid for it, so no debit note is raised.” Type the Reason and how many go back.
Steps 7 and 8 on one screen. Tap Record return
Good to know
Consignment stock is on hand and sellable, but “consignment stock is the supplier’s until it sells”: nothing is owed for it and no accounting entry is made until then.
- Receive a delivery: receiving, inspection and landed costs.
- Return goods to a supplier: returning stock the business owns.
- Record a supplier invoice: invoices for goods you bought outright.