Consignment transactions

Question

Using QBFC, I see that, if I use Sales Receipts, I can specify that funds received are placed into "Undeposited Funds." The other half of the double entry should be split between Sales:Consignment Sales and Consignor Payable (an AP account). I don't see any way to specify this part of the transaction. Sales Orders don't allow me to specify an account at all. How should these transactions be entered?

Answer 1

Sales Receipts are A/R transactions, not A/P transactions. e.g. they are for money coming in, not money going out. Hence why you don't see the A/P side of things.

You should probably ask your accountant how he wants you to enter in the A/P side of the transaction. It will likely be as a Check or Bill + BillPayment.

Sales Orders are non-posting transactions, and thus don't refer to A/R or A/P accounts.

TLDR: Ask your accountant how he wants you to enter A/P transactions.

Answer 2

Sales Receipts use items for the offset against Undeposited Funds. QuickBooks doesn't let you create an Item that links to an A/P account and a regular item can't be split between two income accounts, unless you use group items, but that would get messy for this purpose I think.

I would suggest that you enter the Sales Receipt transaction with the item hitting the Sales:Consignment account for the full amount of the item's price. Then, create a Bill transaction that offsets your Consignor Payable and Sales:Consignment for the amount owed to the consignor.