Sage Intacct Makes AI Accessible for Your Small Business
Sage IntacctUnlock the power of Sage Intacct AI for your small business. Discover how this accessible software...
Blog > SAP Business One Tips and Tricks: Consignment Process
The word ‘consignment’ often brings to mind boutiques where consumers buy used but high-end items at bargain prices. But in the distribution industry, consignment has a different definition: it’s all about warehouse management, inventory, picking, and packing.
Consignment inventory is merchandise that’s sent to and stored at a customer (consignee) location, while the company (consignor) that sent it still owns it. The customer pays for the merchandise when it’s removed from consignment stock.
As a consignee, you’re probably juggling multiple suppliers and their inventory. But you don’t have to – SAP Business One handles the consignment process so you can ditch the spreadsheets.
Here are two ways to set up the accounting side of the consignment process in SAP Business One.
After you’ve designated the vendor a preferred vendor, navigate to the inventory tab to set up a vendor consignment warehouse. Then set up a goods receipt PO (yes, even though there isn’t a PO involved). Select the vendor who sent the merchandise, the items received, and their quantities to see the total value.
The warehouse will be the vendor consignment warehouse. When you use the merchandise, you’ll know how much it costs so you can pay the vendor. You can also drill down and examine the inventory data.
Now that you can see your stock in the vendor consignment warehouse and you know the pricing is correct, you have two options:
Once you’ve created the purchase blanket agreement, specify how much merchandise you’re receiving in the details section. Every time you use some of the merchandise, it will appear in ‘documents,” and, based on your usage, you can create an AP invoice to pay the supplier. Within the chart of accounts, you’ll find your statistical accounts, which aren’t involved in your financial reporting.
To learn more about SAP Business One’s inventory and warehouse management capabilities, download our free Warehouse Management 4.0 eBook.
Subscribe to our newsletter to receive our latest blog posts, case studies and ERP news delivered straight to your inbox.
Unlock the power of Sage Intacct AI for your small business. Discover how this accessible software...
An integrated financial management system like Sage Intacct automates the financial consolidation...
Your software is failing if it hinders progress and steals valuable time. Consider Sage Intacct, a...
Recieve our latest blog posts, case studies, and ERP news
delivered straight to your inbox.