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How Consignment works

What is a Consignment?

Alice POS offers a consignment functionality that allows you to hold items from your customers or suppliers and in turn pay them when the item has been sold.

Understanding how consignment works

First of all, depending on the type of deal with your customers and suppliers, you need to set a consignment percentage for each customer/company and a store consignment percentage. Setting both or either is optional as Alice POS is designed to calculate the amount due based on the purchase and sale price.

For consignments, Alice POS follows a set hierarchy to determine the amount due to your customers: Purchase > Client % > Store %; meaning that the Purchase price or lack thereof, takes precedence over the consignment percentage set either to your customer or store thus determining the amount due.

So if you create a Consignment with a purchase price of 5$ and in turn, you sell the item for 20$, you’ll owe your customer 5$. If you do a purchase at 0$ with a sale price of 20$, you’ll owe them 20$.

If you purchase an item and indicate a purchase price, that will be the basis of the amount due.

Example

Here’s a visual aid to get a better understanding:

Amounts
/
% Set
Purchase 0$
Sale 0$
Purchase 10$
Sale 0$
Purchase 10$
Sale 20$
Purchase 0$
Sale 20$
Store 0%
Client 0%
0$ 0$ 10$ 20$
Store 10%
Client 0%
0$ 0$ 10$ 18$
Store 10%
Client 10%
0$ 0$ 10$ 18$
Store 0%
Client 10%
0$ 0$ 10$ 18$
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