Artists often sell on consignment as do clothing stores.
My friend has started a small consignment store and wants me to bookkeep for her. I do bookkeeping for my husband's business which is a lot different than a consignment store. I was hoping to get some advice on how to post these:
1. She buys items to sell in the store
2. She recieves items on consignment
3. The sales
4. The payment back to the consignor
Thanks for any help!
This is such a great question that rather than answer it here, I am going to do an article on it. I should have it ready later today.
The reason I'm deciding to go that route is because:
- sale by agent arrangements
require the owner to charge and account for GST/HST, and
- purchase and resale arrangements
require both the original owner (consignor) and the consignee to charge and account for the GST/HST.
In the meantime, if you just can't wait for the article, here are some CRA references that may be helpful:
Publication RC4022 General Information for GST/HST Registrants
- see page 63 Agents and page 64 Consignment sales.
GST/HST Info Sheet GI-009 Consigned Goods
GST Memoranda G300-6-9 Consignment Sales (GST 300-6-9)
Once I've written the article, I will post it to my blog. I will also come back here a give a link to the article.
Thanks for such a great question!