Posting items on consignments requires some initial setup in QuickBooks. Before you can sell your consignment items, you need to create your Consignment item or items and a Consignment template. If you have a high volume of sales, you should create a single Non-Inventory Part to track your consignment sales. If you have low sales volumes, you can create an Inventory Part to track each of your sales. Some versions of QuickBooks may come preinstalled with a Consignment Sale template form. If yours doesn't, you must create a custom form before entering your sales.

Create Consignment Items

Select the "Lists" menu and "Item List."

Select "Item" and "New."

Click the "Type" drop-down menu. If you have a low volume of sales, select "Inventory Part." If you have a high volume of sales, select "Non-Inventory Part."

Enter the item name for a consignment item categorized as an Inventory Part. For Non-Inventory Parts, enter the name "Consigned Item" and check the "This Item Is Purchased for and Sold to a Specific Customer:Job" box.

Click the "Income Account" drop-down list and select "Consignment Sales." Then select the "Asset Account" drop-down menu and choose "Inventory on Consignment" if you are creating an Inventory Part item. If you selected a Non-Inventory Part, click the "Income Account" drop-down list and select "Consignment Sales." Select the "Expense Account" drop-down list and choose "Inventory on Consignment."

Click the "Preferred Vendor" drop-down list and select a vendor. Leave the Reorder Point blank for Inventory Part items. For a Non-Inventory Part item, leave this list blank.

Enter the cost for Inventory Part items and enter "0" for Non-Inventory Part items in the Cost field.

Click the "Tax Code" drop-down list and choose an appropriate tax code from the list.

Click the "Custom Field" field button.

Type "Consignor" as the field name. Enter a vendor name in the Consignor field for Inventory Parts, leave the field blank for Non-Inventory Parts.

Click "Save & Close" to save and close the window. Click "Save & Next" to save the item and create a new one. If you are creating Inventory Parts, create a new item for each consignment item. For Non-Inventory Parts, you only need to create one item.

Selling Consignment Items

Click the "Customers" menu and "Enter Sales Receipts."

Click the "Template" drop-down list and select "Consignment Sale." If a Consignment Sale template doesn't exist, you must create one before continuing.

Select a blank line in the Item column and select the consignment item from the list. Click the Consignor column and enter the name of the Consignment vendor, if necessary. Complete the remaining fields you want to track.

Click "Save & Close." Alternatively, select "Save & Next" to enter another consignment sale.

Consignment Form Template

Click the "Lists" menu and "Templates."

Select the "Templates" drop-down menu and click "New."

Select "Sales Receipt" and "OK."

Select the "Template Name" field and type "Consignment Sale." Modify the header and include relevant information about your business in the available fields.

Click the "Columns" tab. Click the "Screen" column of the "Consignor Line" to show this line on your sales receipt within QuickBooks. Click "OK."


Information in this article applies to QuickBooks 2013. It may vary slightly or significantly with other versions or products.