Consignment and Floor Plan are when you have units available for sale but you have not yet technically purchased them. The purchase records are normally only entered when and if the unit is sold.
Consignment tend to be for used units where you are selling on behalf of the owner.
Floor Plan is when the manufacturer or finance company purchases the unit, and you purchase the unit from them when the unit is sold or the plan period expires.
Consignment and Floor Plan are technically not part of you financial stock assets as they are not normally purchased until the unit has been sold. When producing a stock list for financial reports we would exclude the Consignment / Floor Plan units. When producing a stock list for the units available for sale you would include the Consignment / Floor Plan units. These options are available in Items > Units > Quick Reports > Stock Costs.
To enter a USED Consignment or Floor Plan Unit
Select Items from the top menu and then Stock Items from the left menu
On the Stock screen select New from the Left menu
On the New Item screen select the 'Units (Used)' type option at the top of the screen and select OK
You can then enter the contact details of who you are buying it from and the Unit details (as in the procedure for buying in a Used Unit). When entering the details of the Unit, ensure you tick the On Consignment button. The buy and sell prices are provisional as these are often subject to change.
When you save the details, a Unit Sales Details record is created and also a part number to make the unit easy to access. However no purchase transaction is entered on the system at this time (The purchase Transaction is only created when we know the final prices and the Unit is sold).
If the Unit is returned This means you can return the bike easily without affecting your accounts.
To enter a NEW Consignment or Floor Plan Unit
If you have not already got a part number for the New Unit Model then create it. See Creating New Units
Select Items / Purchases and create a purchase order for the unit(s) you are ordering
Receive the Unit(s) on the purchase order when they have been delivered. When confirming the units ensure the Consignment / Floor Plan option is ticked on each one. Note: You can select a default for this in Settings / System / Stock / Unit details
Early purchase of a Consignment or Floor Plan Unit (before sale)
Sometimes you may purchase a consignment or floor plan unit early (before you sell it). If this is the case you should create a purchase transaction manually. Then on the Unit Sales Details, set the Purchase Date and Purchase Amount to the same as the Purchase Transaction and un-tick the Consignment / Floor plan checkbox. This will ensure the unit will show up as In-stock on the appropriate days. This is especially important if the Unit was purchased and in stock at the end of the year.
Selling a Unit on Consignment or Floor Plan
Once you have agreed the sale price of the unit you would normally complete the following tasks:
•On a used consignment unit you would normally first calculate or do any work that was required as this may affect what you will pay for the unit.
•Select: Items / Units and find the unit. Confirm the Buy price you have agreed and ensure the correct Tax scheme is selected. If the person you are buying it from does not have a Tax Number (ABN or VAT Number) you should select the Special Used Scheme.
•Then sell the Unit as you would any other Unit. If the unit is on Consignment / Floor Plan the system will prompt at the end of the sale to Create a Purchase Transaction. If you answer 'No' the Purchase Transaction would need to be entered manually.
If the unit is under the Special Used Scheme the Purchase Transaction must not have any Tax Claimed on it as this will be calculated from the Unit Sales Details.
If it is a Floor Plan unit the purchase price would normally exclude any interest payments as these would normally be entered separately as they occur.
If you wish to put money due to the seller of a consignment unit in a Trust account, you would normally:
•Either Bank the money from the sale as normal and create a journal for the amount from your bank account to the Trust account, or Bank the amount to be paid directly into the Trust account.
•When you are ready to pay the purchase transaction you can either pay direct from the Trust account, or Journal from the Trust account into another account and pay from there.