When you use Quick Books Point of Sale (QBPOS) with consigned items you find that the software does not readily accommodate the sale of consignment items. When the items are entered into the inventory they are treated the same as all normal inventory items. The value of those items will inflate the Inventory account in the QuickBooks Financial System. At the same time, the receipt of those items will create Bills to Pay for the vendor in QBFS, inflating your accounts payable. The only alternative to this has been work arounds that are cumbersome, require manual tracking or re-entry of data, and/or making general journal entries on a regular basis. Using such work-arounds are usually frustrating prone to error and includes using special Department codes that you would not otherwise use for your inventory.

The Consignment Add-On from Ability enables you to use QBPOS without adding consigned merchandise to the inventory values or falsely showing an accounts payable bill to pay in the QuickBooks Financial Accounting Software QBFS.

When using the consignment Add On the value of the inventory item is set to 0. The item value is however entered into one of two available user fields. If the payment to the vendor is a fixed amount the field to be used will be ‘ConCost’ If the payment to the vendor is based on a percentage of the selling price the field to be used is ‘ConCostPer.’

After items are sold, running the program will enter a valid “Bill to Pay” in QBFS. Additionally, if the item is returned by a customer the program will enter a credit in the vendor file.

Since consigned goods are often the responsibility of the store in case of loss or damage, the program includes a report that lists the consigned inventory and the total value of that inventory. We suggest running this report and keeping a copy in case an unexpected loss requires documentation for insurance purposes.

If you already have your consigned inventory entered and are using workarounds to manage it we have anticipated your need to change the value of the item to zero and enter the information into the user field when you begin to use the Add-on. We have provided a password protected function (to eliminate it’s accidental use) within the program to convert this information on a department by department basis. This triggers a correction to the QBFS inventory and lists it as an inventory adjustment. However, vendor balance adjustments must be completed manually since the amount currently owed to a vendor cannot be calculated from available information in the database.

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Since the consignment add-on uses both the QuickBooks Financial Database as well as the QuickBooks POS database. Another Consignment database is also installed with the program. This database is used for manipulation of data by the program. The consignment database is necessary to provide acceptable processing times. The inital installation requires that you tell it where your Quickbooks' Financial company file is, along with how to connect to your Quickbooks POS Database.