Hello,

One of our locations has a new vendor that operates by leaving a 'consignment' inventory  (car batteries) and only bills us when one is sold when they replenish the stock weekly. This is new to this organization. 

The store manager asked me, do they bill out the battery to the customer at zero cost then when the invoice comes from the vendor do we just put to COGS and bypass inventory? That would skew their daily sales reports reflecting 100% margin. 

Or enter as any other one-off purchase we would make from a vendor except that we won't see an invoice from the supplier for a week or so, although we would know the cost. That's my preferred 'consignment' method. 

We don't object to just purchasing some batteries and keeping them in inventory (we do stock some parts at each location) and avoiding the consignment thing if the vendor agrees to that. For the few hundred dollars THAT is my best preference. 

Any input? Thanks!

Kelley Cantrell