Consignor Account Balance

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Edit a Consignor Account Balance

Double-click on a Consignor to open the Consignor Edit Screen.

Click on the Account Status tab to view and/or edit Store Credit, Balance Credit, and last dates for Update, New Item, Sale and/or Settlement.

The first entry, Account Balance, cannot be edited (which is why it is 'grayed out').

Keeping Consignor Accounts in Balance - how to use BCSS and accounting principles to keep consignor account balances in order.

Basic Accounting Principles

An understanding of basic accounting principles is necessary to make sure that all BCSS computations and consignor accounts are correct. A glossary or terms appears below.

Consignment Accounting

Accounting for consignment sales includes the added complexities of split sales proceeds and the settlement of sales. Otherwise, the process of recording sales and computing profits is essentially the same as for any store.

When a sale is finalized (saved in BCSS) accounts for the store, the consignor (and the employee in BCSS Diamond and Virtual) are credited and the settlement account is debited.

Accounting Terms

A Sale is the seller's passing of ownership of an item to a buyer for money or other compensation. A sale of merchandise is recorded in a General Journal as a debit to cash (or accounts receivable) and a credit to the sales account.

Gross Sales is the total invoice value of sales (during a time period) prior to deducting discounts, returns and allowances. Net Sales appear on income statements - not Gross Sales.

Net Sales (Revenue) is Gross Sales received for goods and services sold minus Sales Discounts, Sales Returns and Sales Allowances. Net Sales appear on the Income Statement as Sales or Net Sales.

Sales Returns: Refunds for returned merchandise
Sales Allowances: Reductions is sales price
Sales Discounts: Reduced payments based on invoice terms such as 2/10, n/30 (2% discount if paid within 10 days; net invoice total due in 30 days)

Gross Income is all income (from any source). For a business Gross Income is Pre-Tax Net Sales less Cost of Sales. (For individuals Gross Income is income before taking deductions or taxes into account.)

Income For households 'income' is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received. For businesses, 'income' generally refers to the amount of revenue remaining after expenses.

Profit or Net Income (the 'bottom line') is Total Revenue minus total expenses (in a given time period) and is equal to Total Revenue - Cost of goods sold - Sales discounts - Sales returns and allowances - Expenses - (Minority interest (shareholders) and Preferred stock dividends).

Allowance in Accounting Principles generally refers to an amount deducted from Accounts Receivable for bad debts. In Sales, Allowances are reductions in sale price based upon qualifying circumstances (like merchandise defect).

Accounts Payable are amounts owed by not yet paid (a form or debt); therefore, A/P is a form of credit which allows purchasers to pay for a product or service after delivery of the product or service.

Accounts Receivable (Trade Receivables) is the amount customers owe. On the Balance Sheet A/R's are a Current Asset if payment is due within 1 year.

Store Credit is an amount the store (debtor) owes to the customer (creditor) which the customer may use to make purchases. Store Credit = Total Settlement Amounts - In-House Purchases. As In-House Purchases uses Store Credit, Balance Due plus Store Credit decreases. Balance Credit is a manual adjustment. Positive/negative Balance Credit will subtract/add from/to Consignor balance. Shop Credit increases when settlements are made for credit. The Total Account Balance will remain the same while removing the sold inventory from the unsettled list. The outstanding account balance can then be used to purchase goods from the store. Most commonly stores issue store credit when merchandise is returned without the original receipt.

Credit Balance is an account balance in the customer's favor.

Debit Balance is an amount owed to the seller.

A debit transaction decreases a credit balance or increases a debit balance.
A credit transaction decreases a debit balance or increases a credit balance.

Inventory for consignment stores is generally a list of all items in the store for sale. Because ownership of consignments remains with sellers, consignments are not an asset of the store. Items that have been purchased by store principals which are for sale in the store are part of store inventory.

Stock Keeping Unit (SKU) is a unique identifier (attached to each billable item, variant, product line, bundle, service, fee or attachment) used to systematically track inventory.

Debits and credits are a system of notation used in accounting to both keep track of the flow of money (transactions) into and out of an account, and to indicate the type of account. Traditionally, an account's transactions are recorded in two columns of numbers: debits in the left hand column, credits in the right. Keeping the debits and credits in separate columns allows each to be recorded and summed independently. The smaller of the two sums is then subtracted from the larger to give the account value. An account may thus have either a credit value or a debit value. more: http://en.wikipedia.org/wiki/Debits_and_credits

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