Coding Consignment Items

Let me guide you through the process of coding payments for your consignment items, @hbrunner.

After setting up your consignors, you can make two accounts that will help you manage your consignment sales and payouts. Both of these accounts will be under the Sales of Product Income detail type.

Here's how:

1. Go to the Gear icon, choose Chart of accounts, and click the New button.

2. Under the Account dialog, select Income from the Account Type dropdown.

3. Pick Sales of Product Income as Detail Type.

4. Type Consignment Sales in the Name field and hit Save and Close.

5. Click New in the Chart of accounts again.

6. Under the Account section, choose Income as an Account Type.

7. Pick Sales of Product Income as Detail Type.

8. In the Name field, input Consignment Payouts.

9. Tick the Make this a subaccount checkbox and select the Consignment Sales income account you created.

10. Finally, Save and close.

For more detailed information, you can visit this article: Record consignment sales in QuickBooks Online.

In case you want to document your total daily sales using a single sales receipt, you can check out this article for guidance: Record your total daily sales in QuickBooks Online.

I'm still ready to back you up if you have any other concerns besides recording consignment sales. Feel at ease to add a reply to this thread. Have a great day!

@hbrunner 

The sale of consignment inventory is not COGS, because you never owned the inventory.  It is COGS for the consignor, but for you, the consignee, it is a 'Consignment Expense' (or something similar).  Record the payment to the consignor to that account.  IMO, the advice given by @jeanbiverly_ is incorrect.  I don't understand why QB's advice on this is to post the payment to a contra-income account called 'Consignment Payouts'.  The payments are an expense, they don't reduce your revenue as will happen if you use a contra-revenue account.