Journal Accounts for Vendor Consigned Inventory

Consigned Inventory Management includes recording of debits and credits for posting transactions to your journal accounts, which may be shared with non-consigned inventory. Note the following journal accounts specific to vendor consigned inventory.

Vendor Consignment Inventory Asset - The asset account you specify to track the value of vendor consigned inventory on hand for all vendor consigned items.
Vendor Consigned Inventory Received Not Billed - Automatically created asset account for received consigned items that are still owned by vendors.
Vendor Consignment COGS - The Cost of Goods Sold expense account that you can specify if you want to track the cost of vendor consigned items separately from non-consigned ones.
Vendor Consigned In Transit - Automatically created asset account for fulfilled or received consigned items on transfer orders that are still owned by vendors.

To set up journal accounts or for more information, see the following topics:

To view posting transactions not currently supported within Consigned Inventory Management, see Limitations for Consigned Inventory Management.

When consigned inventory is still owned by the vendor, NetSuite generates entries for your journal accounts during receiving, transfers, and adjustments. Note that the quantity decreased for consigned items on negative adjustments is considered consumed. Also, customer-returned items are no longer owned by the vendor. See the following journal accounts impacted by posting transactions with consigned inventory that are still owned by the vendor:

Posting Transactions	Debit Account	Credit Account
Item receipt (for purchase orders)	Vendor Consignment Inventory Asset	Vendor Consigned Inventory Received Not Billed
Item receipt (for transfer orders at destination)	Vendor Consignment Inventory Asset	Vendor Consigned In Transit
Item fulfillment (for transfer orders at source)	Vendor Consigned In Transit	Vendor Consignment Inventory Asset
Item fulfillment (for vendor returns with vendor-owned consigned items)	Vendor Consigned Inventory Received Not Billed	Vendor Consignment Inventory Asset
Inventory Adjustment (positive)	Vendor Consignment Inventory Asset	Adjustment Account (specified on the adjustment)
Inventory Adjustment (for approved inventory counts)	Vendor Consignment Inventory Asset	Inventory Variance (specified on the count)

Posting Transactions

Debit Account

Credit Account

Item receipt

(for purchase orders)

Vendor Consignment Inventory Asset

Vendor Consigned Inventory Received Not Billed

Item receipt

(for transfer orders at destination)

Vendor Consignment Inventory Asset

Vendor Consigned In Transit

Item fulfillment

(for transfer orders at source)

Vendor Consigned In Transit

Vendor Consignment Inventory Asset

Item fulfillment

(for vendor returns with vendor-owned consigned items)

Vendor Consigned Inventory Received Not Billed

Vendor Consignment Inventory Asset

Inventory Adjustment

(positive)

Vendor Consignment Inventory Asset

Adjustment Account

(specified on the adjustment)

Inventory Adjustment

(for approved inventory counts)

Vendor Consignment Inventory Asset

Inventory Variance

(specified on the count)

After the transfer of ownership of sold consigned items during fulfillment, the remaining posting transactions impact the same journal accounts used for non-consigned items. Refer to the following list of journal accounts for sold or consumed items that are no longer owned by the vendor:

Posting Transactions	Debit Account	Credit Account
Inventory Adjustment (negative)	Adjustment Account (specified on the adjustment)	Vendor Consignment Inventory Asset
Vendor Consigned Inventory Received Not Billed	Inventory Received Not Billed
Item fulfillment (for sales orders and cash sales)	Vendor Consignment COGS (for cost of sales)	Vendor Consignment Inventory Asset (for cost of sales)
Vendor Consigned Inventory Received Not Billed	Inventory Received Not Billed
Vendor Bill	Inventory Received Not Billed	Accounts Payable
Bill Payment	Accounts Payable	Cash
Invoice	Accounts Receivable	Sales Income
Customer Payment	Cash	Accounts Receivable

Posting Transactions

Debit Account

Credit Account

Inventory Adjustment

(negative)

Adjustment Account

(specified on the adjustment)

Vendor Consignment Inventory Asset

Vendor Consigned Inventory Received Not Billed

Inventory Received Not Billed

Item fulfillment

(for sales orders and cash sales)

Vendor Consignment COGS

(for cost of sales)

Vendor Consignment Inventory Asset

(for cost of sales)

Vendor Consigned Inventory Received Not Billed

Inventory Received Not Billed

Vendor Bill

Inventory Received Not Billed

Accounts Payable

Bill Payment

Accounts Payable

Cash

Invoice

Accounts Receivable

Sales Income

Customer Payment

Cash

Accounts Receivable

Balance sheets and income statements also reflect the impact of posting transactions with vendor consigned inventory. At specific stages of inventory processing, you can view journal accounts with debits and credits on a report's asset, liability, or income section. See Available Financial Statements.

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