New set up for a client who owns an antique and floral business. Most of the antiques are from consignment vendors who don't get paid until the item is sold. My client would like to be able to keep track of the individual items that come in on consignment from the various vendors. 1. Can I set up some sort of inventory type account to keep track of each of the items individually so that when they are sold I can deduct the item from the consignment items that are currently on hand? I know that you are not fond of using the QuickBooks inventory feature so if I can't use the inventory feature, would trying to set up something using the items list work? The problem here is that there would be well over 100 items. Is this a good idea?
New set up for a client who owns an antique and floral business. Most of the antiques are from consignment vendors who don't get paid until the item is sold. My client would like to be able to keep track of the individual items that come in on consignment from the various vendors.
There is a lot to think about in your client setup. Without going into exhaustive detail, here are a few directional tips.
1) Don't use inventory. QuickBooks Inventory is only good when a company purchases and sells finished goods that are held in inventory for a period of time. Since consigned inventory does not belong on the balance sheet, the inventory account should never show a balance. Therefore, the whole inventory process is not appropriate for this client.
2) The attached PDF shows the steps for setting up items (non-inventory part items), vendors, and transactions to handle the consignment inventory problem.