Consignment accounting

If items owned by others are consigned to you for sale, do not include these items in your inventory. Your records would only report income from any commissions or profits you are entitled to when you sell a consigned item.

If you consign your goods to others, do not report this arrangement as a sale. You report income from the sale of consigned goods when they are sold by the consignee. Any inventory you've consigned to others must remain in your inventory until actually sold to a customer.