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Consignment stock (as consignor)

SupportNoteGuy's avatar
MYOB Staff
9 years ago

Setting up your MYOB software to track consignment stock usually requires assistance from an accounting advisor. The example we'll use is a company which distributes stock to many stores. A number of stores refuse to purchase the stock outright, but will gladly sell it on a consignment basis.


This article is provided for guidance only - it might not be suitable for your business requirements. If you need clarification, check with your accounting advisor or post your question below.




What is consignment stock?


Consignment stock, by definition, is a marketing arrangement whereby physical control of merchandise but not title, is transferred from one business (the Consignor) to another (the Consignee). The title to the goods remains that of the consignor until such a time as the goods are sold by the consignee. For this reason, consignment stock is typically shown as an asset in the consignor's books until the consignee sells the goods. At this point, a sale occurs and the goods pass title.



Setting up


You'll need to create an asset account to track the value of your consignment stock (Accounts > Accounts List > Asset tab > New).


Here's an example:




Each line of inventory on consignment will require its own item number. It's a good idea to use the same item number as the existing item, but preceed it with the letter "C" to identify it as consignment stock.


To create items, go to Inventory > Item List > New.


Select the options I Sell This Item and I Inventory This Item. For the Asset Account for Item Inventory, select the asset account created above.


Here's an example:





Move stock from trading stock to consignment stock


This step uses the Build Items function to move inventory quantities and vlaues from your trading stock to become consignment stock (Invemtory > Build Items).


Select the trading stock item and enter a negative quantity for the quantity being transferred. Then select the matching consignment stock item and enter the same quantity as a positive number. Also enter the same Unit Cost as the first stock item.


Here's an example:





Sell the consignment stock


When the consignee sells the consignment stock, you need to create a sales invoice containing the untis of stock sold.


Here's an example:




Settle the invoice as usual using Receive Payments.



Keeping track of consignment stock


To help you keep track of the stock sent to a consignee, you can create a quote for those goods. Then when the consignee sells an item, you can modify the quote to remove that item from your records.




If the consignee returns stock


Complete a Build Items transaction (Invemtory > Build Itemsto move the stock and its value from consignment stock back to trading stock.


Here's an example:




Please feel free to comment below with any queries you may have on the topic. We have a fabulous group of partners and customers on this forum, who would be happy to provide further guidance on the topic.

Updated 9 years ago
Version 1.0


  • mmyyoobb's avatar
    Contributing User

    well, thanks for this post, i have a few more questions:


    how do we track consignment stocks to a particar consignee, say, customer ABC, we want to find out what consignment stocks this customer has on their hand, how do we manage to do this task?


    another senario happens like, say customer ABC had consinment stocks a long list, and a month later, they returned some stocks and they kept the rest, how do we do at this particular time?




  • HJen's avatar
    Cover User

    How can we do this without using the inventory module on MYOB?

  • Neil_M's avatar
    Former Staff

    HI HJen


    Welcome to the MYOB Community Forum, I hope you find it a great resource


    As tracking of the inventory values as detailing in the blog article do use the Inventory module to track stock values, you would need to be using the Inventory module to record this information.


    If you weren’t using the Inventory module then I recommend speaking with your accountant as they will be able to advise you of the relevant journal entries

  • ANZHPL's avatar
    Contributing User

    Thanks for the notes. It's easy to follow.

    But I met a problem. When I built items, it shows error. Please see the error below. How can I do? I need to move stock from trading stock to consignment stock.  Hope someone can help me. 



  • Rolly's avatar
    Contributing Cover User

    Hi Stella,

    I couldn't see the error in your post.



  • The article is very useful. But for some reason I am unable to open the five "example"images shown in the post. Could you send the images to me at



  • Thanks a lot for the guidance. Would you also be able to provide me with the example pictures as well as I'm not able to access it. Cheers.

    • SupportNoteGuy's avatar
      MYOB Staff

      Hi accountaccount - sorry for the missed messages and delayed reply!


      I'm not sure why the images from this old post have disappeared - and we can't find backups! I know this isn't ideal, and I apologise for a less-than-ideal answer.



      • accountaccount's avatar

        What are the chances that you can help to provide more guidance from the missing pictures? I'm trying to make a progress with the consignment stock but not feeling confident at all since I'm not very skilled with MYOB.