Consignment Stock

Consignment stock includes depleting stock that does not have to be paid for (to the supplier) until the stock is invoiced to a customer.

A Consign.In purchase order is used to receive the stock quantity into Jim2. Costs are allocated once a subsequent Consign.Buy purchase order is entered and moved to FINISH status.

Jim2 uses FIFO (First In, First Out) to allocate stock costs to jobs. Where the same stock code can be purchased on a Consign In purchase order, as well as a normal purchase order, users may want to utilise the normal quantity of stock before using the consignment stock. In this circumstance, the setting (via Tools > Options > Stock) should be set to:

Once an invoice is received for the goods, enter a Consign.Buy order to purchase the stock that has been sold.

A water tank supplier drops off 6 models of water tanks, each available for sale but not to be invoiced by the supplier until sold. The following process occurs:

▪Enter a Consign.In purchase order (on Received or Finish status) for six tanks. The dollar amount at this stage is of no importance, as there is no impact on the general ledger with a consign in purchase order, so $0 is acceptable.

When changing the Status to FINISH, you will need to enter a Vend Inv# and Vend Inv Date. You can enter anything in the Vend Inv# field if you don't actually have an invoice yet.

▪Sell two tanks to customers. Jim2 understands there were originally six, and now there are only four.

▪Sell two more tanks to customers. Jim2 understands there are only two tanks remaining.

▪The supplier invoices for four tanks. Raise a Consign.Buy purchase order for four tanks including the amount paid, which then finalises COGS for the tanks and adds to the creditor balance.

Prepaid phone charge cards, where there are numerous depleting stock codes, however invoices are received only as they are sold. The following process occurs:

▪Consign.In purchase order (on Received or Finish status) for 200 cards.

▪Jim2 understands there are 200 of each card in stock.

▪Sell 25.

▪Receive an invoice from the supplier for the 25 sold.

▪Raise a Consign.Buy purchase order for the invoiced number.

This system also works for dial-time type transactions for mobile phone businesses, for instance.

A Consign.Buy can only ever buy as many units as are on the Consign In.