How to Record Sale of Consigned Goods
Records the sale of inventory held on behalf of a consignor, including the commission earned.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Debit | 1,200.00 | - |
| Consignor Payable | Credit | - | 1,000.00 |
| Commission Revenue | Credit | - | 200.00 |
💡 Accountant's Note
As a consignee, the company does not own the inventory. The sale generates a liability to the owner and a fee (commission) for the consignee.
Practitioner & Systems Framework
💻 ERP Architecture
Non-owned inventory locations or virtual warehouses for consignment tracking.
⚠️ Audit Flags
Inclusion of consigned goods in physical inventory counts belonging to the company.
📄 Required Documentation
Consignment agreement and monthly sales report sent to consignor.
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