Are electronic signatures valid?

Yes. Electronic signatures that meet ESIGN Act standards and applicable UETA rules are legally binding for most commercial consignment documents. Ensure intent, consent, attribution, and retrievability are documented to satisfy 15 U.S.C. ch. 96 and state UETA regimes.

Do counts need notarization or witnesses?

Most inventory counts do not require notarization, but some states or contracts may ask for notarized acknowledgements for evidentiary strength. Follow contract terms; when required, use RON or in-person notarization consistent with state notary rules.

How do we correct a counting error?

Record the error, perform an immediate recount, note the corrected figures with time and signer initials, and produce an amendment or addendum signed by both parties documenting the change and reason.

Who should sign the Count?

Operational managers or authorized designees from both consignor and consignee should sign. Signatory authority should be documented in the consignment agreement to avoid later disputes over ratification.

How long should we retain signed counts?

Retain counts at least three years for tax and accounting purposes; extend retention for HIPAA or industry rules (HIPAA 6 years) or as specified by contract or state law.

Can we use photos as evidence?

Yes. Timestamped, high-resolution photos attached to the signed count strengthen evidentiary value. Store photos alongside the signed Count and note file names in the document index.

Electronic Signature
Templates
Miscellaneous
Inventory Consignment Count

Inventory Consignment Count

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

INVENTORY CONSIGNMENT COUNT

Consignor Name: Consignee Name:

Location of Inventory: Count Date:

RECITALS

WHEREAS, Consignor owns certain goods intended for sale on consignment and desires Consignee to hold and offer such goods for sale under the terms of this Inventory Consignment Count and Agreement; and

WHEREAS, Consignee has received the goods listed below, has performed a physical count and condition inspection on the Count Date set forth above, and both parties desire to record the results of that count and the terms governing custody, sale, and distribution of proceeds from consigned inventory.

SCOPE OF WORK

Description of Inventory Count Procedures

INVENTORY COUNT — ITEMIZED RECORD

The following list records the physical count and condition of each consigned item taken by Consignee on the Count Date. Both parties certify that the entries below reflect the inventory present at the location specified above, except as noted in the Remarks column.

Item No.	SKU / Identifier	Description	Qty Received	Qty on Consignment	Unit Value (USD)	Condition	Remarks

Additional Inventory Details or Attachments

PAYMENT TERMS

Commission to Consignor: OR Flat Fee per Item:

Payment Schedule and Disbursement

Late Payment Fee (if applicable):

TERM AND TERMINATION

Term Commencement Date: Term Expiration Date:

Notice Period for Termination Termination and Retrieval Procedures

CONFIDENTIALITY

Each party acknowledges that certain information exchanged in connection with this consignment, including but not limited to item values, customer lists, pricing strategies, and sales data, constitutes Confidential Information. Neither party shall disclose Confidential Information to any third party except as required by law or with the prior written consent of the other party. Confidential Information shall be used solely for the performance of this Agreement and shall remain the property of the disclosing party.

Permitted Disclosures (if any)

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict-of-law principles.

ENTIRE AGREEMENT

This Inventory Consignment Count, together with any attached schedules or addenda signed by both parties, constitutes the entire agreement between the parties with respect to the consigned inventory and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written. No modification of this Agreement shall be effective unless in writing and signed by both parties.

INVENTORY RECONCILIATION & CERTIFICATION

Both parties hereby acknowledge receipt of the inventory listed above and certify that the recorded quantities and conditions were observed and agreed upon at the time of count, except as otherwise noted in the Remarks column or attached schedules. Any discrepancies discovered after this Count Date shall be addressed pursuant to the dispute resolution provisions herein.

Inventory Counter(s) / Inspectors Discrepancies Noted

Consignor Printed Name:

By:

Date:

Consignee Printed Name:

By:

Date:

What the Inventory Consignment Count Is and When It’s Used

An Inventory Consignment Count is a formal record documenting physical inventory held on consignment between a consignor and a consignee. It lists individual items, quantities, item identifiers, condition, and location at a specified count date, and serves as the basis for billing, revenue recognition, loss allocation, and reconciliation between parties.

Why a Formal Count Matters for Consigned Inventory

A clear, dated Inventory Consignment Count reduces disputes, supports accurate accounting, and establishes responsibility for shrinkage or damage. It creates an auditable trail for revenue recognition, insurance claims, and tax records while improving visibility for both consignor and consignee.

Who Typically Prepares and Reviews This Count

Both consignors and consignees prepare or request consignment counts; warehouse staff and inventory managers usually perform the physical count.

Consignor inventory team — Requests counts, reconciles shipped vs. on-hand quantities, and verifies item condition before invoicing.
Consignee operations staff — Conducts the physical count, documents location and condition, and communicates discrepancies to consignor promptly.
Third-party auditors or logistics partners — May perform independent counts for high-value consignments or to resolve disputes.

The document is commonly signed by operational leads from both parties and retained as part of accounting and claims records.

Essential Elements to Include in a Professional Count

A thorough Inventory Consignment Count includes identification, quantities, condition, and signatures; it should be auditable and time-stamped.

Count Date

Record the exact MM/DD/YYYY count date and time to establish the inventory snapshot used for reconciliation and revenue recognition.

Item Identification

Include SKU, UPC, serial number, or other unique identifier so each counted unit maps unambiguously to shipment and invoicing records.

Quantity

List counted quantity by SKU and location; indicate units of measure (each, case, pallet) to prevent conversion errors during accounting.

Condition

Note item condition (new, damaged, expired) and any packaging issues; condition affects liability, returns, and insurance claims.

Location

Specify warehouse, aisle, bin, or consignment area to document custody and support inventory traceability in multi-site operations.

Signatures

Include printed name, role, signature, and date for both the person performing the count and an approving representative from the other party.

Stepwise Process to Complete an Inventory Consignment Count

Follow these steps to perform a consistent, auditable count and minimize reconciliation work afterward.

01

Prepare: Assemble packing lists, prior counts, and SKU mappings before entering the warehouse.
02

Count: Physically inspect and record quantities and condition for each SKU and location.
03

Reconcile: Compare counted totals to inventory records; note and investigate variances immediately.
04

Approve: Obtain signatures from both parties and record the signed count date and time.

How the Count Fits into the Consignment Workflow

The count anchors billing, inventory adjustments, and dispute timelines; align timing with shipment and invoicing cycles.

Receive Notice: Consignor notifies consignee of scheduled count window and required documentation.
Perform Count: Consignee conducts physical counting; both parties may be present or use third-party auditors.
Document Results: Record quantities, discrepancies, and photographic evidence where appropriate.
Finalize: Sign the Count, update inventory ledgers, and initiate any invoice or credit adjustments.

Configuring a Digital Count Workflow

Set up field mapping, approver routing, and evidence capture to make digital counts repeatable and auditable.

Field	Configuration
Item Identifier Field	Required; validate against SKU master.
Quantity Field	Numeric only; include unit selector.
Photo Attachment	Optional but recommended; require minimum resolution.
Approval Workflow	Route to consignor and consignee for signatures.

Digital Tools and Technical Considerations

Choose a platform that supports PDF and DOCX formats, photo attachments, conditional fields, and an audit trail.

File Formats: PDF and DOCX supported for templates and final signed copies.
Integrations: Connectors to ERP or WMS reduce manual reconciliation work.
Authentication: Email or SMS codes suffice for low-risk counts; stronger auth for high-value inventory.

Platforms that provide tamper-evident signed PDFs, stored audit trails, and integration with inventory systems streamline disputes and accounting.

Typical Timing and Deadlines for Counts and Follow-Up

Establish clear deadlines for conducting counts, reporting discrepancies, and completing financial adjustments to avoid late claims and reconciliation gaps.

Scheduled Count Window:

Agree on a specific date range and cut-off time for physical counting.

Discrepancy Notice Period:

Set a short window (commonly 5–15 business days) to report and document variances.

Reconciliation Deadline:

Complete ledger adjustments and credits within the agreed accounting cycle.

Invoice Adjustment Period:

Issue credits or additional invoices within the next billing run after reconciliation.

Retention Start Date:

Retention runs from count date; retain records per agreed policy and legal minimums.

Key Milestones from Count to Final Accounting

Track these sequential milestones to ensure the count is actionable and reflected correctly in accounting records.

01

Pre-Count Preparation

Gather pick lists, prior counts, and assign counters.

02

Physical Counting

Perform and record counts for each location and SKU.

03

Discrepancy Resolution

Investigate variances, capture evidence, and document root causes.

04

Final Posting

Post adjustments and capture signed count for audit purposes.

Common Pitfalls When Preparing a Consignment Count

Missing or inconsistent SKU mapping between consignor and consignee leads to unmatched lines and reconciliation delays.
Counting without documented cut-off times allows shipments in-transit to distort the snapshot used for billing.
Failure to capture item condition creates disputes over liability for damaged or unsaleable inventory.
Unsigned or undated counts lack evidentiary weight and complicate insurance or audit claims.

Risks and Potential Consequences of an Incorrect Count

Financial Misstatement: Overstated or understated revenue and inventory balances; impacts financial reporting.

Insurance Denial: Incomplete evidence can lead insurers to deny loss claims.

Contract Disputes: Unresolved discrepancies can trigger penalties or breach claims under the consignment agreement.

Tax Exposure: Incorrect records may complicate tax reporting and audits; retain supporting docs per IRC §6501(a).

Operational Delays: Recounts and reconciliations increase labor and logistics costs.

Loss of Trust: Repeated errors damage business relationships and order flow.

eSignature Vendor Comparison for Inventory Consignment Counts

Comparison focuses on pricing, bulk send, audit trail, HIPAA capability, and envelope limits that matter when signing high-volume or high-value consignment counts.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year limit	Varies	Varies	Varies

Frequently Asked Questions About Inventory Consignment Counts

Answers to common questions on validity, signatures, error correction, and storage to help both consignors and consignees avoid disputes.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures that meet ESIGN Act standards and applicable UETA rules are legally binding for most commercial consignment documents. Ensure intent, consent, attribution, and retrievability are documented to satisfy 15 U.S.C. ch. 96 and state UETA regimes.
Do counts need notarization or witnesses?
Most inventory counts do not require notarization, but some states or contracts may ask for notarized acknowledgements for evidentiary strength. Follow contract terms; when required, use RON or in-person notarization consistent with state notary rules.
How do we correct a counting error?
Record the error, perform an immediate recount, note the corrected figures with time and signer initials, and produce an amendment or addendum signed by both parties documenting the change and reason.
Who should sign the Count?
Operational managers or authorized designees from both consignor and consignee should sign. Signatory authority should be documented in the consignment agreement to avoid later disputes over ratification.
How long should we retain signed counts?
Retain counts at least three years for tax and accounting purposes; extend retention for HIPAA or industry rules (HIPAA 6 years) or as specified by contract or state law.
Can we use photos as evidence?
Yes. Timestamped, high-resolution photos attached to the signed count strengthen evidentiary value. Store photos alongside the signed Count and note file names in the document index.

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