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Consignment Transactions

As a principal or actual owner of goods, you may be sending the goods to third party for consignment sales, without receiving an immediate payment. You can record all your consignment transactions in TallyPrime. If you are a consignment agent receiving goods from the principal, you can use TallyPrime to record all the transactions as an agent.

 

Consignment Transactions of Principal

You need to use godowns to manage the stock sent for consignment sales. The stock available in such godowns will be part of your stock value.

In this section

 

Issue stock items for consignment sales

When you issue stock items for consignment sales, you need to account for your stock which is with the third party.

  1. Enable the godown to account for your stock which is with the third party.
    1. Gateway of Tally > Create/Alter > type or select Godowns > create or select the godown.
      Alternatively, press Alt+G (Go To) > Create Master/Alter Master > type or select Godown > create or select the godown.
      When only the Main Location is available, you will be prompted to create new godown or alter the existing godown. Select Create or press C to create a new godown.
    2. Press F12 (Configure) > set Enable third party stock details to Yes.
    3. In the Godown Creation screen, set the option Our stock with third party to Yes.
  2. Open the material out voucher and select the godown.
    1. Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material Out.
      Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material Out.
      In case the voucher is inactive, you will be prompted to activate the Material Out voucher type. Select Yes or press Y to proceed.
    2. Select the customer’s (consignment agent’s) name as the Party A/c Name.
    3. For Destination Godown, select the godown in which the option Our Stock with Third Party is set to Yes.
  3. Provide the stock item details.
    1. Select the stock item.
    2. Select the Godown in which the options Our Stock with Third Party and Third party Stock with us are set to No.
    3. Enter the Quantity and Rate. The amount appears automatically.
  4. Press Ctrl+A to accept the screen. The material out voucher screen appears.
  5. Accept the voucher. As always, you can press Ctrl+A to save.

The movement of stock items will be recorded as consignment stock transfer outward.

 

Record sales of goods by third party

The principal will periodically receive information from consignment agent about the goods sold. Record such sales in sales invoice.

  1. Open the sales voucher screen.
    1. Gateway of Tally > Vouchers > F8 (Sales).
      Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
    2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
  2. Specify the buyer details.
    1. Party A/c Name: Select the ledger created for consignment agent.
    2. Party Details: Provide the Dispatch, Order, and Buyer details as per your invoice requirements.
      If you do not see the Party Details screen, press F12 (Configure), and set Provide Dispatch, Order, and Export details to Yes.
      Henceforth, you can enter the supplementary details in the sales voucher, until you change the option in F12 (Configure).
      As always, you can press Ctrl+A to save and proceed.
  3. Select the Sales ledger to allocate the stock items.
  4. Provide the stock item details.
    1. Select the stock item and press Enter to view the Stock Item Allocations screen.
    2. Select the godown in which the option Our Stock with Third Party is set to Yes.
    3. Enter the Quantity and Rate. The amount will appear automatically.
  5. Provide Narration, if needed.

    What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.
  6. Accept the voucher. As always, you can press Ctrl+A to save.

You can record the sale of goods made by consignee, either by cash or credit, in sales voucher.

 

Record receipt of sale value from third party

Based on the amount received from the consignment agent for value of goods sold, you need to record a receipt voucher.

  1. Open a receipt voucher and enter the amount received.
    1. Gateway of Tally > Vouchers > F6 (Receipt).
      Alternatively, press Alt+G (Go To) > Create Voucher > press F6 (Receipt).
    2. Account: Select cash or bank ledger.
    3. Particulars: Select the consignment agent’s ledger.
    4. Amount: Enter the amount received.
  2. Select the sales bills against which the amount is received.
    1. Select Against Ref as the Method of Adjustment.
    2. Select the sales invoice reference details.
  3. Enter the bank details if the amount is received via bank transfers.
  4. Accept the voucher. As always, you can press Ctrl+A to save.

You can record period receipts from consignee in receipt voucher.

 

Record receipt of goods returned by third party

When the consignment agent returns the unsold stock items, you need to record it in material in voucher.

  1. Open the material in voucher and record the movement of stock items for consignment sales.
    1. Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material In.
      Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material In.
      In case the voucher is inactive, you will be prompted to activate the Material In voucher type. Select Yes or press Y to proceed.
    2. Select the supplier’s (principal’s) name as the Party A/c Name.
    3. For Source Godown, select the godown in which the options Our stock with third party is set to Yes.
  2. Provide stock item details.
    1. Select the stock item.
    2. Select the Godown in which the options Our Stock with Third Party and Third party Stock with us are set to No.
    3. Enter the Quantity and Rate. The amount appears automatically.
    4. Press Ctrl+A to accept. The material in voucher screen appears.
  3. Accept the voucher. As always, you can press Ctrl+A to save.

To record such inward movement of goods from consingee, you can use material in voucher.

 

Consignment Transactions of Agent

In this section

 

Receive stock items received for consignment sales

  1. Enable the godown to account for your stock which is with the third party.
    1. Gateway of Tally > Create/Alter > type or select Godowns > create or select the godown.
      Alternatively, press Alt+G (Go To) > Create Master/Alter Master > type or select Godown > create or select the godown.
    2. Press F12 (Configure) > set Enable third party stock details to Yes.
    3. Set the option Third party stock with us to Yes.
  2. Open the material in voucher and select the godown.
    1. Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material In.
      Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material In.
      In case the voucher is inactive, you will be prompted to activate the Material In voucher type. Select Yes or press Y to proceed.
    2. Select the supplier’s (principal’s) name as the Party A/c Name.
    3. For Source Godown, select Not Applicable.
  3. Provide the stock item details.
    1. Select the stock item.
    2. Select the Godown in which the options Third party Stock with us is set to Yes.
    3. Enter the Quantity and Rate. The amount appears automatically.
    4. Press Ctrl+A to accept the screen. The material in voucher screen appears.
  4. Accept the voucher. As always, you can press Ctrl+A to save.

You can select the godown to which the stock items are allocated, while recording the sales voucher.

 

Record sales of goods received from the principal

  1. Open the sales voucher screen.
    1. Gateway of Tally > Vouchers > F8 (Sales).
      Alternatively, press Alt+G (Go To) > Create Voucher > press F8 (Sales).
    2. Press Ctrl+H (Change Mode) to select the required voucher mode (Item Invoice, in this case).
  2. Specify the buyer details.
    1. Party A/c Name: Select Cash or Bank for cash sales. For credit sales, select the party name.
    2. Party Details: Provide the Dispatch, Order, and Buyer details as per your invoice requirements.
      If you do not see the Party Details screen, press F12 (Configure), and set Provide Dispatch, Order, and Export details to Yes.
      Henceforth, you can enter the supplementary details in the sales voucher, until you change the option in F12 (Configure).
      As always, you can press Ctrl+A to save and proceed.
  3. Select the Sales ledger to allocate the stock items.
  4. Provide the stock item details.
    1. Select the stock item and press Enter to view the Stock Item Allocations screen.
    2. Select the Godown in which the options Third party Stock with us is set to Yes.
    3. Enter the Quantity and Rate. The amount will appear automatically.
  5. Provide Narration, if needed.

    What you see on the screen can vary based on your choices. Press F12 (Configure) to change the options and F11 (Features) to enable or disable features.
  6. Accept the voucher. As always, you can press Ctrl+A to save.

You can record the sale of goods received from principal, either by cash or credit, in sales voucher.

 

Account for the consignment sale value payable to the principal

Based on the value of goods sold, you can record a journal voucher to account for the amount to be paid to the principal. You can check the sales register and arrive at the amount to be paid to the principal.

  1. Open a journal voucher and enter the amount to be paid.
    1. Gateway of Tally > Vouchers > F7 (Journal).
      Alternatively, press Alt+G (Go To) > Create Voucher > press F7 (Journal).
    2. Debit the expense ledger and enter the amount to be paid.
    3. Credit the principal’s ledger.
    4. In the Bill-wise Details screen, select New Ref and enter the reference numbers with the corresponding amounts.
      The journal voucher appears as shown below:
  2. Accept the voucher. As always, you can press Ctrl+A to save.

You can select the bill references of these journal voucher while making the payment to the principal.

 

Record payments to the principal

Based on the amount of goods sold, you need to record a payment voucher to pay the principal.

  1. Open a payment voucher and enter the amount to be paid.
    1. Gateway of Tally > Vouchers > F5 (Payment).
      Alternatively, press Alt+G (Go To) > Create Voucher > press F5 (Payment).
    2. Account: Select cash or bank ledger.
    3. Particulars: Select the principal’s ledger.
    4. Amount: Enter the amount to be paid.
  2. Select the journal voucher references against which the amount is being paid.
    1. Select Against Ref as the Method of Adjustment.
    2. Select the journal voucher reference details.
  3. Enter the bank details if the amount is received via bank transfers.
  4. Accept the voucher. As always, you can press Ctrl+A to save.

You can record period payments made to the principal in payment voucher.

 

Record goods returned to the principal

When you return goods to the principal, you need to record it in material out voucher.

  1. Open the material out voucher and select the godown.
    1. Gateway of Tally > Vouchers > F10 (Other Vouchers) > type or select Material Out.
      Alternatively, press Alt+G (Go To) > Create Voucher > F10 (Other Vouchers) > type or select Material Out.
      In case the voucher is inactive, you will be prompted to activate the Material Out voucher type. Select Yes or press Y to proceed.
    2. Select the customer’s (consignment agent’s) name as the Party A/c Name.
    3. For Destination Godown, select Not Applicable.
  2. Provide stock item details.
    1. Select the stock item.
    2. Select the Godown in which the option Third party Stock with us is set to Yes.
    3. Enter the Quantity and Rate. The amount appears automatically.
    4. Press Ctrl+A to accept the screen. The material out voucher screen appears.
  3. Accept the voucher. As always, you can press Ctrl+A to save.

To record such outward movement of goods to principal’s godown, you can use material out voucher.

 

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