Selling consignment goods and reporting in the Ecosystem

Why you need a Sales report

Selling consignment goods at the till does not create a debt to the supplier: the debt arises only after the “Sales report” document. Without it, the seller sees revenue but not the cost price, so profit is overstated and settlements are incorrect.

Example. A store sold a dress for UAH 2,000. The manufacturer handed it over at a price of UAH 1,500. After the sales report, UAH 1,500 becomes a debt to the manufacturer, and UAH 500 is the store’s earnings.

Before you start

The goods must already be in the seller’s shared warehouse: see Transferring and receiving goods in the Ecosystem. The partners are linked through the Ecosystem setup.

Step 1. Issue the sale to the customer (seller)

The seller issues an ordinary sale from the shared warehouse.

1. Create a sale document: see Sales of goods and services.
2. Choose the shared warehouse that holds the consignment goods.
3. In the table part, add the product, the quantity and the selling price (the one the customer pays).
4. Be sure to choose the supply batch.
5. Save the document.

At this stage, the “Stock movement” report writes off only the quantity, and the cost price is zero. The “Gross profit” and “Income and expenses” reports show revenue without expenses. There is no debt to the supplier.

Step 2. Create the Sales report (seller)

The “Sales report” records the financial obligations to the supplier.

1. Open the Ecosystem section, the “Sales report” tab.
2. Click Create document.
3. In the “Base document” field, choose the sales document from step 1.
4. Bimp fills in the supplier, warehouse, goods and prices by itself. The price pulled in is the one at which the goods were accepted on consignment (the transfer price: see Prices and cost price in the Ecosystem).
5. Save the document.

After saving:

• the cost price appears in the Gross profit report, and profit is calculated as revenue minus cost price;
• the debt to the supplier for the amount of the sold goods appears in the Settlements with suppliers report;
• a “Supplier order” is created automatically and acts as the goods receipt.

Step 3. Confirm the report (supplier)

The supplier confirms the sale with the status “Received”.

1. In the supplier’s “Ecosystem” section, a “Sales report” with the status “New” appears automatically. While it is “New”, the seller’s debt is not shown.
2. Open the document, check the data and change the status to “Received”.
3. Save the document.

The status “Received” means agreement with the selling price and the amount. After it, a Customer order is created automatically and the seller’s debt is accrued.

What changes for the supplier after confirmation

• The Stock movement report: the cost price of the goods is written off from the shared warehouse.
• The “Settlements with customers” report: the seller’s debt appears.
• The “Gross profit” report: in the “Revenue” column, the amount sold at the consignment transfer price.

Summary of the process

The full cycle consists of the transfer, the sale, the report and the confirmation. The seller gets a correct profit (selling price minus the supplier’s price), and the supplier records the partner’s receivable. For the start of the scenario, see the Bimp Ecosystem.