Recording receipt and sale of consignment goods

I am looking to do the same.  However, it seems that this explanation leaves out accounting practices that could misstate the books.  If you create another account called Consignment Inventory, any transactions to it still records these transactions as posted to the financial statements and consequently misstates the Balance Sheet.

Consignment goods are actually non-posting inventory items until they are sold at which point the transaction classifies to revenue and COGS. 

In Enterprise 11, my client wants to be able to track consignment inventory for multiple locations.  However, when she posts consignment items to inventory, the offset will either be the cash account or accounts receivable.  By this double entry, the transaction indicates that ownership has transpired.  However, under consignment, ownership has not been transacted.  Only the receipt of consigned inventory has been acknowledged.  However, placing the consigned items on the Balance Sheet makes it an asset, which is not really true.

My client wants to be able to track used time on phone cards at multiple locations. The company buys the phone cards and activates them.  However, the stored cards for inventory purposes are only worth $.05 each activated until the time on the cards are used.  At that point the company receives an invoice from the vendor for the used time.  However, she gives the cards to stores at no costs (on "consignment") and does not recognize any revenue until the store to whom she resells the cards sells them and then pays her. 

Given this scenario, how then would you track the inventory items?

If they do not truly belong to the company, they cannot be assets on the company's Balance Sheet.   The other problem is the offsetting entry. 

So, what if you use the Class and Sales Order for initially recognizing a consignment item?  The item would be a non-inventory or Other Charge item.  The Sales Order is a non-posting transaction and would not be a transaction on the books.  To show multiple locations on reports, the company would have two options.  Set up a custom field and supply the name for each location in the custom field or use the Class feature (if it is not reserved for another type).  Set up the Class as a location. If the Class is used for some other type, set up a Customer called Consignment - Location #1.  For each job under the Consignment customer, set up the real customer to whom the consigned items are sold.   This allows tracking by inventory location. by the Customer "Consignment" or through Sales Order reporting.

Would this work as a work-around?

I am looking to do the same. However, it seems that this explanation leaves out accounting practices that could misstate the books. If you create another account called Consignment Inventory, any transactions to it still records these transactions as posted to the financial statements and consequently misstates the Balance Sheet.

Consignment goods are actually non-posting inventory items until they are sold at which point the transaction classifies to revenue and COGS.

In Enterprise 11, my client wants to be able to track consignment inventory for multiple locations. However, when she posts consignment items to inventory, the offset will either be the cash account or accounts receivable. By this double entry, the transaction indicates that ownership has transpired. However, under consignment, ownership has not been transacted. Only the receipt of consigned inventory has been acknowledged. However, placing the consigned items on the Balance Sheet makes it an asset, which is not really true.

My client wants to be able to track used time on phone cards at multiple locations. The company buys the phone cards and activates them. However, the stored cards for inventory purposes are only worth $.05 each activated until the time on the cards are used. At that point the company receives an invoice from the vendor for the used time. However, she gives the cards to stores at no costs (on "consignment") and does not recognize any revenue until the store to whom she resells the cards sells them and then pays her.

Given this scenario, how then would you track the inventory items?

If they do not truly belong to the company, they cannot be assets on the company's Balance Sheet. The other problem is the offsetting entry.

So, what if you use the Class and Sales Order for initially recognizing a consignment item? The item would be a non-inventory or Other Charge item. The Sales Order is a non-posting transaction and would not be a transaction on the books. To show multiple locations on reports, the company would have two options. Set up a custom field and supply the name for each location in the custom field or use the Class feature (if it is not reserved for another type). Set up the Class as a location. If the Class is used for some other type, set up a Customer called Consignment - Location #1. For each job under the Consignment customer, set up the real customer to whom the consigned items are sold. This allows tracking by inventory location. by the Customer "Consignment" or through Sales Order reporting.

Would this work?