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consignment and memo items
WHAT THEY ARE

Consignment and Memo items are identified in The Edge as such via the Stock Type field in the item record. By properly selecting memo type or consignment type, The Edge can greatly improve the management of payables and accounting.

WHAT THEY DO

Once items are properly identified as Consignment or Memo, they will continue to be treated as such for the remainder of the accounting cycle. For example, if you’re integrated with QuickBooks, consignment and memo items can be mapped to special income and cost-of-good-sold accounts so that you may manage them differently from regular stock items.
How They’re Similar
Both are liabilities while in your possession. Also, they will both generate a payment due after being sold, which is expressed by setting a payable date on the item record.
How They’re Different
Memo items are owned by a vendor and Consignment items are owned by a customer. Therefore, how you pay for these items will have a different process. For Consignment items, there is a system option to automatically generate a credit memo to the owner when the item is sold. Memo items are paid for, albeit after the sale, like any other inventory bill when they become payable and are handled outside The Edge.

HOW THEY WORK

Consignment and Memo sales follow this general process:
  1. Item intake, where you indicate the type of item you have
  2. Sell the item to a customer
  3. Pay the owner or vendor.
    Note: For the purposes of reporting, Consignment and Memo items are not considered part of stock until the item is sold and a payable is attached to the record.
To Add a Consignment or Memo Item
When you receive a Consignment or Memo item, use the same process found in the Working with Item Records section, the only difference being from the General tab, select Consignment or Memo from the Stock Type drop-down list.
  • Consignment – For a consignment item, you will be asked to identify the owner using the Customer Find filter. This indicates who should be paid when the item sells. Without that information, The Edge will not allow you to save the record. Like any other item, for the integrity of management reporting, consignment items require a vendor entry. It’s recommended that you create a single vendor called Consignment.
  • Memo – A memo item has an option to indicate an expiration date, which is the date it is due back to the vendor if unsold. The item’s Vendor Return Memo feature allows you to send all memo items based on the Memo Expires value.

EXPAND YOUR EDGE EDUCATION

Interested in learning more about Consignment and Memo Items? Click below or visit EdgerUser.com and search Consignment and Memo Items under Inventory. You’ll find info on finding and reporting on these items, returning them to stock, returning them to vendors, and more.