Simple way to report sales on consignment
Hi
We are an Art Centre selling member's work for a commission. We create a bill to purchase, then charge a commission in 2 step transaction. In P&L this is reported as the member payment and commission, not gross sales less COGs cost of sale/ member patment) The member payment beung GST free, the commission not... We then report member sakes as an expense down the line in P&L. I think its very clunky and not true indication of gross turnover. Anyone got any tips or places to go fir advice. Cheers
I had a similar situation years ago, where a gallery was selling painting on behalf then taking off a commission once sold. Gallery didn't pay for the painting until it had been sold. We would put a purchase order in MYOB for the painting assigned to the artist. Then a sale would be created for the full price of the painting when sold. At that time the purchase order was turned into a bill, and the lesser amount paid to the artist. This would show in COGS, and full sale amount shows in Sales. I remember it being a bit messy keeping track of who was owed money. We used inventory to show what was in stock (ie on the walls) and what had been sold and then it tracked who bought each painting and where it had come from. Hope that helps your process.
