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Use Warehouse instead of Item to segregate inventory by GL Ledgers.
Consignment Warehouses must have 0 cost.
Use Transfer Orders to transfer inventory between warehouses with the same GL Ledger.
Use Sales Orders and Purchase Orders to transfer inventory between warehouses with different GL Ledgers.
For all Shopify Sales Orders, Payment Terms must be Prepaid, so debit will go to the Undeposited Cash Account, instead of AR.
For all Consignment Sales Orders, Unit Cost must be 0.
For all Consignment Sales Orders
For Breaking Games (there are two consignment warehouses), we must keep the Unit Price as it is (not 0) so that when we post Sales Invoices, we can:
DR AR
CR Client Fund Payable
For Blackbox (there is one consignment warehouse), we must keep the Unit Price as 0 so that we don’t create GL Entries in the Undeposited Cash Account.
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GL Ledger | Inventory Warehouse | Physical Warehouse | Revenue Sources | Transaction Type |
|---|---|---|---|---|
Ad Magic | Yongle AM Owned | Yongle | Purchase Products from Yongle | Purchase Order |
Sell to BG and others, such as CAH | Sales Order | |||
Breaking Games | Yongle Consignment | Yongle | Increase/Decrease Inventory | Item Journal using 0 cost |
Receive Sales Orders from CAH, for customers like Target We still collect $ | Sales Order | |||
Yongle BG Owned | Yongle | Purchase Products from Yongle or others | Purchase Order | |
Receive Sales Orders from CAH, for customers like Target | Sales Order | |||
BG Owned | Blackbox | Purchase Products from Ad Magic or others | Purchase Order | |
Receive Sales Orders from CAH, for customers like Target. | Sales Order If prepaid, must use Prepaid Payment Terms on Sales Order. Prepaid Prepaid Payment Terms points to the Undeposited Cash Account. | |||
BG Consignment | Blackbox | Increase/Decrease Inventory | Item Journal | |
Receive Sales Orders from CAH, for customers like Target We still collect $ | Sales Order | |||
Amazon Owned (FBA) | Amazon | Transfer Inventory | Transfer Orders | |
Receive Orders from Amazon | Sales Invoices | |||
Deduct Inventory | Cycle Count? | |||
BlackBox | BlackBox Owned | Blackbox | Purchase Boxes, Packaging Materials | Purchase Orders |
Deduct Inventory | Cycle Counts | |||
Fulfillment Services for Breaking Games (BG Consignment & Blackbox Consignment) and others | Sales Invoice
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BlackBox Consignment | Blackbox | Must make sure on the Sales Order:
| When posting a sales invoice, the system will not create any GL Entries because the total sales invoice amount is 0. |
Accounting Entries
Warehouse | Transactions | DR | CR |
|---|---|---|---|
Owned Warehouse | Purchase Order | Inventory | AP |
Sales Order | AR | Revenue | |
Consignment Warehouse | Item Adjustment Journal at 0 | N/A | N/A |
Transfer Orders | N/A | N/A | |
Sales Order (Breaking Games) | AR | Client Fund Payable | |
Sales Order (BlackBox) - Force Unit Price to 0, and Source = Shopify on Sales Order | 0 | 0 |
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Purchase Order
Use "Yongle Owned" Warehouse
Create a Prepayment Invoice
Pay the Vendor.
Receive
Invoice
Debit Inventory for "Yongle Owned", $3
Credit AP, $3
Use Sales Order to transfer ownership to Clients.
Use "Yongle Owned" Warehouse
Create a Prepayment Invoice
Get paid.
Then Allocate and Ship
Invoice
DR AR
CR Revenue (4190-BG Merchandise Sales), $10
DR COGS (5280-Cost of Goods Sold - Misc), $3
CR Inventory for "Yongle Owned"
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To add inventory to "Yongle Consignment"
On the Sales Order, specify final Consignment Warehoues and Quantities
Yongle Consignment
Auto create an Item Journal to add total shipped quantities to Yongle Consignment at 0 cost.
Breaking Games Consignment
Auto create a Transfer Order to transfer inventory from Yongle Consignment to BG Consignment
Post the Whse Shipment
When the goods arrive at BG Consignment, create Whse Receipt.
Receive EDI Orders from Walmart and Target with consignment Warehouse.
Allocate and ship
Invoice
DR B/S Contra Consignment Inventory (Account COGS) $0
with 0 inventory value
CR Inventory (Consignment Warehouses) $0
DR AR $20
CR Client Fund Payable (Account Sales) $20
Programming Note:
Added Account Posting Group to Warehouse
Added Sales Invoice Line trigger to look for the correct APS to use based on the Accounting Posting Group defined on Warehouse
When AR is received from the client's customers, then pay the client.
Create a Payable
DR Client Fund Payable
CR AP (to your client)
DR Service Fees and Expenses
Need more discussions on logic
Fixed amount
% of sales amount
Receiving, Storage,
Create Cash Disbursement
DR AP
CR Bank Account
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