Consignment Store

Artists often sell on consignment as do clothing stores.

Artists often sell on consignment as do clothing stores.

Hi!


My friend has started a small consignment store and wants me to bookkeep for her. I do bookkeeping for my husband's business which is a lot different than a consignment store. I was hoping to get some advice on how to post these:

1. She buys items to sell in the store
2. She recieves items on consignment
3. The sales
4. The payment back to the consignor

Thanks for any help!



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Mmmmm,

This is such a great question that rather than answer it here, I am going to do an article on it. I should have it ready later today.

The reason I'm deciding to go that route is because:

- sale by agent arrangements require the owner to charge and account for GST/HST, and

- purchase and resale arrangements require both the original owner (consignor) and the consignee to charge and account for the GST/HST.

In the meantime, if you just can't wait for the article, here are some CRA references that may be helpful:

Publication RC4022 General Information for GST/HST Registrants - see page 63 Agents and page 64 Consignment sales.

GST/HST Info Sheet GI-009 Consigned Goods

GST Memoranda G300-6-9 Consignment Sales (GST 300-6-9)

Once I've written the article, I will post it to my blog. I will also come back here a give a link to the article.

Thanks for such a great question!

Comments for Consignment Store

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Apr 09, 2011
 No GST/HST
by: Anonymous

She hasn't registered for GST/HST as her sales are not yet at $30,000.
Apr 09, 2011
 Consignment Accounting
by: Lake

My first draft for my chat on consignment accounting is up.
Dec 14, 2011
 Consignment Setup Simply Accounting
by: Apollo, Canada

I am trying to setp up consignment inventory Using Simply Accounting Premium 2011.

I read your article on how to do this with Quickbooks but there is nothing out there describing how to do this with Simply Accounting.

Doing a search on their website using the word consignment does not show any results at all.



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Hi Apollo,

Sorry I don't know anything about Simply Accounting. I decided to try and Google your question. If you search for "consignment accounting + simply accounting", you will get some links to follow that may help you out.

Good Luck!

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