CONSIGNMENT SALES

Consignor- The one who principally owns the inventory being sent to the consignee for sale.

Consignee – the one who holds and sell the inventory in behalf of the consignor.

- Possessed the capacity of an agent

Consignment out - an account being maintained by the consignor whenever there is inventory being
sent to the consignee with the related direct costs incurred.

Consignment-In - an account maintained by the consignee for the receipt of inventory.

1 Earn through

Inventories Commissions

2.
Consignor Consignee Sell Outside Parties

Remittance Pay the Price

(Net of Commission) 3.

Earn through sales 4.

Revenue Recognition

 Sales are recorded by consignor if the inventory are sold by consignee to the outside parties
and upon notification to the consignor.
 Profits are equal to Sales Price to the Consignor less Cost of inventory and any direct cost
less commission and any operating expenses

*transportation costs incurred to deliver the inventory to the consignee is part of the cost of
goods sold

*the balance of consignment out equals the cost of unsold inventory being consigned.