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How to make a Consignment Sales entry? @ Tally.ERP9



How to make a Consignment Sales entry?




The Principal (Consignor) sends the goods to the Consignment  Agent (Consignee) to sell the goods on Consignment basis.


The Agent creates the items at ZERO Cost and receives goods under a Receipt Note Voucher without any Tracking Number.


On making a sale, the Consignment Agent prepares a Delivery Note without Tracking Number to indicate delivery of goods to the end customer. The Consignment Agent informs the Consignor to raise a Sale Bill to the customer.


This transaction does not show the value of the goods in the Consignment Agent's stock, but provides the information on the stock movement.


Finally the Consignment Agent raises a Debit Note/Invoice on the Consignor (Principal) for commission or services rendered.



Sample entries made in Consignor’s and Consignee’s books of accounts:



In Consignor’s Books of Accounts


Bank Account                                                                Dr.        10000

To Consignee Account                                                               10000

(Being Advance received from Consignee)



Sales Order and  Delivery Note entries



Commission Payable  Account                                       Dr.        500

To Consignee  Account                                                              500

(Being Credit Note or Journal to book the expenses)




Consignee Account                                                        Dr.        500

To Bank Account                                                                       500


(Being Commission paid to Consignee based on Sales)



In Consignee’s Books of Accounts


Consignor Account                                                         Dr.        10000

To Bank Account                                                                       10000


(Being Advance paid to Consignor)


Purchase Order & Receipt Note entries


Cash or Party’s Account                                                 Dr.        8000

To Consignment Sales Account                                                  8000


(Being Sale of goods)


Consignor Account                                                         Dr.        500

To  Commission Receivable Account                                           500


(Being Debit Note raised for receiving the commission)


Bank Account                                                                Dr.        500

To  Consignor Account                                                               500


(Being Commission received)

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