Jewellery Workflow - Sales - Selling on Consignment ("Memo Sales")
This page describes selling jewellery pieces on consignment.
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It may be that you will need to sell pieces on consignment. You will ship pieces to Customers, usually resellers, but will not invoice them until they report that they have sold the pieces. Such sales are sometimes known as "memo sales" or "memo transactions". The pieces should still be included in your stock, but should not be available for selling. It is recommended that you move those items to a separate dedicated Location, perhaps a generic Location that you will use for all pieces out on consignment or separate Locations for each Customer or reseller. Follow these steps:
- Enter a normal Sales Order for the piece in the Sales Orders register in the Sales Orders module. Assign the Order to a dedicated Order Class for memo sales (to help with reporting), and specify the Location that you are using for memo sales.
- After saving the Order, select ''Stock Movement' from the Create or + menu. Use the Stock Movement to record the moving of the piece from the store or display case Location (the "From Location" in the Stock Movement) to the memo Location (the "To Location"). You will need to specify the Serial Number of the piece (if it is a Serial Numbered Item). When the Customer collects or otherwise takes delivery of the piece, mark the Stock Movement as Received and save. Stock levels in both Locations will be updated.
- The Outstanding Orders report in the Sales Orders module will allow you to keep track of memo Orders. Run it specifying the memo Order Class and memo Location (if it is generic) and selecting the Not Delivered and Not Invoiced options. The report will list Orders for pieces that are on Customer sites, but that are not yet sold and invoiced.
- When the Customer reports they have sold the piece, return to the Order and create a Delivery (from the memo Location) and an Invoice. Depending on the configuration you are using, the Delivery will update stock and post Cost of Sales. The Invoice will post to the Sales, VAT and Debtor Accounts.
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Jewellery workflow in Standard ERP:
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