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  1. Set up an account starting a free trial and log in with your email sign-in information.
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  3. Proceed by opening your uploaded invoice in the editor.
  4. Execute all the required steps with the file using the tools from the toolbar.
  5. Press Save and Close to keep all the changes performed.
  6. Send or share your file for signing with all the required addressees.

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Consignment invoice template for Sales

[Music] well welcome to another workshop wednesday it is september all right wednesday september what's a year ew let's not talk about that right i saw something the other day it was like uh man i can't believe it's september already it seems like it was just march like 17 years ago isn't that the truth the time is just standing still and going so fast at the same time i think that we've come a long way since march i feel better don't you i do i do well welcome again uh for another workshop wednesday today's workshop is all about handling consignments so uh carrie let's talk about what what a consignment actually is what what what is it so oftentimes when a let's just say you have a retail shop and there's a new product that somebody's trying to get you to sell and you're not sold on it yet so they say well why don't you see how it'll sell before you have to stock up on it so you don't own that inventory you just agree to try to sell it so that creates a dilemma because you haven't you have nothing to add to your books and somebody the advantage is that to a business owner you don't have to buy the inventory you have something to sell but you don't have to buy it ahead of time so in that regard it's it's uh it helps your cash flow as a business owner because you don't have that money tied up until it's sold so it's a it's a pretty good return on your investment when it comes to you know deciding the way to do that and and high ticket items like cars and furniture uh pretty good idea i mean it's pretty cool to do it that way if you have that that kind of arrangement and we had a used car and uh you know there was a consignment car dealer so i took it down there and they had it on their lot so you know it it's better than me doing a private sale because you know i have to have to figure out you know do i post it on craigslist or facebook marketplace or something like that he's got a car lot with you know people coming to the car lot so it's it's a better win for me as a seller and a better win for them as as as a business because they didn't have to buy it off me in order to sell it so um but yeah like you said that does bring up some dilemmas how do you track that yeah right well that's what we wanted to talk about today and the different ways to to kind of handle that uh so one thing uh you know that you you want to ask yourself right is is do you want to carry this in stock right because then it would make it an inventory item and then you have all all to deal with that but we're good we're going to talk about in general just to how to account for that right kerry right yeah because there's like he was saying there's two ways you can do it you can track it as your inventory which causes dilemma the year you know if you want to do that at your end then you have to figure out how to get it off your inventory because you didn't pay for it you got these open bills and you got to deal with that so that's one way you can do consignment we're going to talk about how to do it it's a little less information than you would get as running it as your inventory but it does the same similar job it's good enough right you don't want to load up with too much data so right and and if that's something that your business uh or your clients business handles on a regular basis then it kind of leads to those those kind of decisions and those questions when you when you talk when you're working with them you know do you uh do you want to handle this as inventory if we do then we have this this option so carry you want to share your screen and we'll kind of walk through uh this this kind of procedure and i am going to put in the same comments i can see it good right i want the wrong screen open exactly yeah all right so you're gonna show that you're gonna show the desktop um and i'm gonna show the the uh the quickbooks online uh way that way they can handle this now um what we're what we're what we're doing here is we're going to handle this with accounts and classes uh so um so first we need to set up a class and we're going to set up a class for each individual consignor and that would be a person you know person that's come that that is coming in to say hey i've got a car or furniture or whatever it is that i'm going to consign for for you and and uh so we'll set them up as a class first so you did that there and then we want to create two uh two income or two expensive that two accounts one an income account and one in the expense account just to track the consignment income and the consignment expense separately okay so one yeah it's a one income account and one uh expense account not cost of goods but just expense well i mean you can again you can do that if you want the cost of goods sold if you if you prefer to have it as a so you have your gross profit there right which would you prefer i would like cost of goods sold thank you cost of goods sold for 100 please consignment expense payout whatever this is how this is what you're going to write this is the check that i'm going to write to dan my consign yeah when it's when it's sold it's an orem one's an 8. when it's sold dan will get it'll go here okay got it so i've got now we're going to we've set up an arrangement and we're like okay this is how much i want to be paid out when it's sold when it sells and then you can sell it for whatever you want and then you just get to keep the difference so um so we're going to create a new item and and we can create this item as uh as as a generic item or we can create it as you know individual and that would be you know if you're really wanting to track the what you have on on hand you know if you're if you're a retail store and you've you've got to actually create a bar code for that particular item um you know that that sort of thing is going to determine whether you need it to be individualized or not but we're just going to create a a generic item here your dan's car and then you want to mark that i'm going to check this button just to give me two sides right i don't do that it's going to get lost and so i'm going to say old car by dan whatever i want to show up on the invoice and dan and i have come to the agreement now let's just say retail shops clothings you don't typically mark it up so if you pay 50 for a pair of pants you're gonna sell them for a hundred so but dan and i have a deal because i'm the one selling it for him so i hope to make more money right right so he's gonna give me a deal he's only going to charge me 400 for the thousand dollar car and i'm going to use that new consignment expense my preferred vendor is going to be oops we didn't send it set it up and set me up as a as a vendor now we can if we want and right here right on the fly on the fly and uh and then i'm going to sell it for a thousand dollars now i'm going to leave taxable because in the state of beba it would be taxable why i'm adding it to the item codes can you imagine if you don't have the setup and you're selling it and forgot about sales tax so let's do this part right and then consignment not expense because it's going to take you to a zero move you want to point to the right account right you're complaining about income nec accounts all right so that's gives me now i'm ready to sell dan's car now to set it up ahead of time because you know you're you're gonna need to pay me right when when it's sold so what we can do to kind of get ready get that set up to be able to do that is create a purchase order for that consignment item and the reason we want to do the um we want to do a purchase order is because it's non-posting we don't really have the expense until it's sold the class i'm going to carefully use dan that stands everywhere and then the item code dan's car and when we sell it it will then become a bill so right now we're getting it just just going to sit in the hopper until we're ready bam so now that so that way that way you've got it set up and ahead of time to be able to you know because once it's sold then you have to go and actually you know pay pay pay the consignor right so setting it up and see if this item's on a purchase order uh i somehow was trying to add that column somehow it just flew away you tried to get fancy i got fancy on the fly never get fancy on in a live demo because that's when nothing works right because it'll only show that uh will only show that on a on an inventory item if we oh there you go that's what's wrong okay he's good point so once again note to self note itself um if you call this a non-inventory part that's the problem with that so you know you could always it's up to you i like to call it all right right so now now hooray it's sold so you want to bring up the sale uh so you can either do that as an invoice or or a sales receipt that's depending on how you know how you bring up your sales normally yeah i like invoice but um oh come on sell it to me no but sell to my favorite customer abc plumbing um oops i didn't mean to do that all right dan's car and i'm so excited i sold it for a thousand dollars oh what did i forget the class got the class and then you know what happens when you forget the class there you got to make sure it's on the i on the line if it needs to be yeah that's not that's not okay we're good okay you know if there's because you set that item up ahead of time it pulled the sales price um you know the right sales price from oh you don't have to go get a notebook and go what did i say what did i say it was gonna what was the arrangement so by setting it up as an item first you'll have that be able to ring that up a lot faster so we want to save it okay save it um i'll just pay cash because i can i've got that much cash in my pocket oops always gonna uncheck the old email later all right save and now it's sold but we have another now i need now you need to pay me so now we can turn that uh that purchase order into a bill so we can receive uh you know enter the bill as soon as you put me on the vendor and it's gonna say hey you've got you've got a purchase open purchase order do you want to receive against that select it and then we'll just copy those items to the bill uh put in your you know your reference number information like that don't forget the class and the class is on the individual line so we're good there but it's always good to just cover your bases right so there's the bill and close save and clean and then you know under normal circumstances you would then you know pay the bill write the check however you're going to actually pay that but now when you go to profit and loss yeah and show those columns by class bam now we've got a a setup we've got a column that is just the you know the the dan column and then if you want to do this you know and customize this just for your consignments what you can do is is customize the report and filter for just those two accounts right so it's up at the top multiple accounts and if you just search for consignment if i can spell it if you can spell it then you can just oh i could even select all yeah all right click ok so now we only have we have our gross profit of uh 400 or 600 because we had the bill set up and then we have the um you know the invoice or sales receipt bringing up the the income so that way you can keep track of you know on one report you can memorize it uh you can see what i just changed how those arrangements are working out um if you have other um other consignors come to you and then you can take a look at that report and and make some decisions like okay well this one was six hundred dollars how much work did i actually need to do that do for that um and then you can allocate other you know other expenses into that it's my favorite button right there hit the percent and it shows you your margin there you go like hey dan you have any more cars exactly or you know on the fly i had to change my agreement you know i had to change the sales price or i had to change maybe he his agreement i put in the notes that he wants to have 30 of whatever i sell so you put those notes in there you don't you're not stuck with these sales price and the expense but it gives you a starting place so that's that's like a an easy way to kind of handle handling consignments just so that the accounting is correct there's a lot more questions than answers in in this setup to be able to to do that but this will allow you to you know create a report see it in in all in one one place so i'm gonna kind of run through what i've done for uh quickbooks online uh because kerry's shown the desktop and so let me while he's getting that pulled up you can translate this workflow even in point of sale quippo's point of sale yeah so um so i already went ahead and created the the list so what i did was i created a a parent class and then started creating each consignor as a subclass because that way if you're using classes for something else in addition to tracking consignment you can then filter your reports even further for just those those classes and then you kind of have them grouped together so it gives you a little bit more more flexibility so i used bob bob and jane there now the challenge is that if you're using a plus you have a limitation on the number of classes and locations that you can use so if you're going to use classes in this in this situation you might hit that limit if you're if you're using plus because you only have 40 combined between the locations and the class so then you may need to upgrade to advanced if this is a deal breaker or you really like the way this is this is working out with the uh with the reporting right yeah i was just going to say and if you if you haven't purchased yet the best way to get those discounts is to make sure you're getting the right product to start with don't go into plus until you max out because you'll lose that discount that's just my i already i already created the item it's a non-inventory item i just used a generic consignment item i chose the class on the item itself so that way i'm sure that the class is going to be assigned and then i can modify it to the individual consignor during that time period i would just leave if it's a generic item you know i'm just going to leave the leave it blank and then um but i have my consignment uh income and my consignment expense now i set it up as a as an expense account versus uh cost goods sold of course uh carrie would probably tell me to a cat pool during the workshop wednesdays when are they going to show up during how many years how many will show up how many spots there's one so far exactly all right so we've got our uh our income and expense account set up on the item uh we would do exactly the same thing uh we would create a purchase order uh for that i don't know if i did that already yeah yeah i did yeah so i did create the you have to have at least sorry to interrupt you have to have at least the edition of plus to be able to do inventory and purchase orders at least okay and and also classes so all three of these things at least put you into into plus so i have my generic item uh put in the amount and then you just have to modify the class uh to be sure that if you're using the subclass situation all right so that's that and then we sell it so we got a new sales receipt what do we have here the bird sanctuary i bought my consignment item and then i'm going to put the um you know the sales price of that so let's say it's five hundred dollars and then change the consignment to bob so that i keep the class uh in order okay and then same close and then from my reports oh i forgot to do the bill you're right no good catch uh but again that that consignor will be set up as a vendor uh it's gonna allow me just to add the purchase order to it and we do have the class the class pulls over from the transaction and then we save and close that and then my profit and loss by class there's my bob consigner i can then customize this to only show consignment income and expense accounts and there we go same uh same same thing and then we can save that customization uh for my consignment report and save it so the next time it'll be in my my customized reports so that's how you would handle that same situation in uh in quickbooks online uh we've shown that you how to do that in desktop as well and we've got the blog article in the comments here so that you can review that procedure as you need and this can be done in any version of desktop qbo plus and advanced and point-of-sale pro and multi-store not basic so not simple start not essentials not point-of-sale basic but the other all the other ones you can do this with okay so um so next week uh we're actually going to be doing um bounced checks [Laughter] right we'll see how many cats bounce by so we'll see you next week thanks for joining us again today and uh hope you have a great day bye have a good week

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