How to keep records of goods for sale and pay bills with the supplier

Goods on consignment: how to control consignment deliveries so you pay the supplier only for the goods that have actually been sold to customers?

For proper control of goods taken on consignment and for making payments to the supplier only for sold items, the Torgsoft program provides a clear algorithm of actions that covers all stages from proper receipt of goods to financial analysis.

Step 1. Proper receipt of goods 

Goods taken on consignment are received in the usual way with mandatory indication of the supplier and the purchase price. However, there is an important nuance: if identical goods are received from different suppliers, it will be difficult for the system to identify the goods of a specific supplier in the list of sold items if they were entered under the same name and barcode. To avoid confusion, when receiving goods on consignment, they must be assigned their own unique barcode.

Step 2. Using a special analysis tool 

The main tool for controlling such deliveries is the «Analysis of sales of supplier's goods on consignment» report, which is located in the «Analysis» section of the main menu. This mode is specifically designed to review sales of goods from a specific supplier and determine the debt amount specifically for the goods that were actually sold.

To generate the report, you need to:

• Select the required supplier from the list.

• Specify the currency in which you want to view the debts (if the field is left empty, the debt will be calculated for all currencies in the national equivalent according to the rates of the goods receipt documents).

• Select the business entity (if goods are divided among different entrepreneurs during receipt).

• Specify the sales analysis period.

After setting the filters, click the «Calculate» button. The program uses the FIFO algorithm (first in, first out), automatically treating as sold the goods that were received from the supplier first and using the exact purchase prices of that batch. This calculation must be performed every time after creating new warehouse documents (receipt, sale, return).

Step 3. Monitoring report indicators 

In the generated window, you will see detailed calculated information that allows you to pay exactly for what has been sold:

• Delivery: the quantity and amount of goods that you received from the supplier.

• Sold during the period: the quantity and amount of goods sold during the selected period at this supplier's purchase prices.

• Returned to supplier: the quantity of goods that you returned (for example, because they sell poorly and you do not want to tie up money in them).

• Returns from customers: the quantity and amount of goods that customers returned to the store.

• Total to pay: this is the key indicator that reflects the quantity of sold goods and their amount at purchase prices, which you must pay to the supplier.

• Debt for the period: the amount of your actual debt for sold goods taking into account payments already made.

Step 4. Settling with the supplier 

After finding out the exact amount in the «Total to pay» or «Debt for the period» field, you can proceed to the direct payment. Payment is made through the «Payments — Financial document» menu item, where you choose the required tab: «Cash desk» (for cash) or «Bank account» (for non-cash transfers).