Creating consignment items

  1. Select Item Locations.
  2. Open an item location record.
  3. On the Main tab specify this information:
    Buyer
    Select a buyer to create purchase orders for consignment items only.
    Consignment
    Select this check box to make this a consignment item at this location.
  4. Click Save.
    When you create a consignment item at a location you must set up some additional options.
  5. On the Reorder tab specify this information:
    Automatic Purchase Order
    Select this check box to automatically order the consignment item for this location.
    Reorder Quantity Code
    Select Difference Quantity. When you select difference quantity, the difference between the available quantity and a specified reorder point is ordered.
    Reorder Point
    Specify the stock quantity that was agreed upon by both parties.
  6. Click Save.
  7. On the Replenishment tab, add the primary replenishment vendor.
  8. To set up an inventory location account group by location, select Administration and click the Account Groups link.
    • The Inventory and Receipts accounts must be the same. Optionally, the Inventory, Receipts, and Adjustment accounts should all be the same.
    • The Inventory account should be set up as an individual asset account, as there are credit balances sometimes.
    • The Physical Inventory Variance account should be set up as a consignment loss account or expense.
  9. Click Save.
  10. To add a receipt transaction for the initial inventory balance and cost, select Transactions and click the Receipts tab.