How to Handle Consignment Stock in School Shop (Non - COGS Mode)

Step	Action	Details	Task
1	Determine if your shop is setup for COGS Journals.	Use program Finance > School Shop > Setup Information > School Shop Setup. Select this shop and go to the 'GL Integration' tab. If 'Post Cost of Goods to GL' = 'No' then this is the correct 'How to' guide. If 'Post Cost of Goods to GL' = 'Yes' then this is the incorrect 'How to' guide. You need to use 'How to Handle Consignment Stock in School Shop (COGS Mode)'.	Complete
2	Set up a stock group.	Use program Finance > School Shop > Setup Information > School Shop Setup to create a new stock group for consignment stock. Select the shop that you will be using for consignment stock and create a new stock group using the 'Stock Groups' tab. Example: Group Code = 'CON' Group Name = 'Consignment Stock' We recommend that you create a new GL Account to use for consignment stock sales: Sales Account — Use an Income account called 'Consignment Stock Sales'. Cost of Sales Account — This account will not be used in non-COGS mode. Enter a clearing account. Stock Account — This account will not be used in non-COGS mode. Enter a clearing account. An example of the GL journal that will arise: This would be where a parent has indicated that they want $100 for the sale of the item and the school will make a profit of $20. Sale of a consignment stock item where the item has a 'Sell Price' of $120 and a 'Last Cost' of $100. Debtors Control 120.00 DR Consignment Stock Sales 120.00 CR The GL income account for consignment stock could be allocated to a 'Trading Entity' by using 'Reporting Code 5' on the account record. This would allow these to be separated and included in the shop trading statement on the income statement.	Complete
3	Create stock item.	Create a stock item for each consignment stock item using program Finance > School Shop > Stock Information > Stock. Use the 'Stock Group' setup in Step 2 for each item. Record the Parent Code and Surname of the parent who has provided the consignment stock in the 'Supplier's Item Code' field. This needs to be accurate as this is the field that will be printed on the consignment sales report. Important! You will use this information to process reimbursements to parents who have provided the consignment stock. Enter a 'Quantity on hand' of '1'. Enter the price that the school will sell this item for in the 'Sell Price' (excl. tax). Enter the amount that the parent who has provided the consignment stock is to receive when the item is sold (if known) in the 'Last Cost' field.	Complete
4	Sell item.	Consignment stock items are sold using program Finance > School Shop > Shop Transactions > Sale Entry.	Complete
5	Identify consignment stock sales.	Use program Finance > School Shop > Listings and Reports > Sales Analysis Report to run a report of all consignment stock sales during a period. Filter the report by 'Stock Group'. Selecting the code that you setup in Step 2 for consignment stock. On the 'Print' tab select 'Consignment Stock Report' in 'Report Options'. The report will print the cost and sell price for each consignment stock sold. It will print the details of the parent who has provided the consignment stock in the 'Supplier's Item Code' field (providing they were entered on the stock item as detailed in Step 3). Use this report to provide the information necessary to reimburse the parent who has provided the consignment stock as either: Creditor payments through the Accounts Payable module, or Credits against the parent accounts in the Parent Accounts module.	Complete
6	Reimburse the parent who has provided the consignment stock.	If you are processing payments back to these parents through the Accounts Payable module use the GL Account 'Creditors (Consignment Stock)'. Using the example from Step 2, the GL Journal will therefore be: Consignment Stock Purchases 100.00 DR Accounts Payable Control 100.00 CR If you are processing payments back to these parents through the Parent Accounts module use a fee credit code that is attached to GL Account 'Creditors (Consignment Stock)'. Using the example from Step 2, the GL Journal will therefore be: Consignment Stock Purchases 100.00 DR Accounts Receivable Control 100.00 CR	Complete