We only work with 2 consignment customers, of which I have only now had to face working with on Pastel.
From a bookkeeping/accounting point of view, what is the best way to process this?
The customer makes partial payments throughout the year as he sells stock. I have to make an invoice for those sales without a stock movement report.
I did the following:
1. Make out an invoice for the entire value of stock sent
2. Credit the customer for damaged stock and stock returned
The balance of the invoice is the sum of SALES made and STOCK ON HAND.
I receive a Stock on Hand report, but I don't want to subtract this, as the customer may return or sell this stock and payments/credit notes will have to be credited against the account in future. This will give the wrong balance as to what the customer still owes and he will always be in credit.
Does this logic make sense?