Consignment Stock, Dollars Etc.
Instructions

Overview

In addition to all the features which are built into the standard version of The Jewellery Shopkeeper, the Plus version gives, amoung other things, the following enhancements:

• Merchandise, Standard Stock and Raw Material can all be received on consignment.
• Consignment stock can, at any time, be converted to "own stock".
• Selling prices can be recorded in Dollars. Dollar price prints on price label if applicable.
• Consignment stock cost can be recorded in dollars.
• The dollar costs are converted to local currency at time of use, sale or conversion to own stock.
• The dollar prices are converted to local currency at time of use or sale.
• Consignment merchandise, standard stock and raw material can all be used in service orders as well as sold with all sales types and zipsale.
• Consignment stock can be reported, but are not included as assets in the balance sheet. Periodic reports list the consignment items that have been bought (converted from consignment at time of sale), together with the cost prices, for reconciliation with the supplier.
• All consignment reports are sorted by supplier and the stock-on-hand report can be filtered by supplier.

Adding new consignment stock - Raw Material

This is a two step process after initial set-up has been done.

Initial Set-up:

First add or edit the raw material group codes via Inventory, File maintenance, Group codes, Add or Edit. This is done in order to set default VAT and duty codes, the above letters must be added to the group code file (Inventory, File maintenance, Group codes, Add), preceded with an asterisk. For example:

*B Brooch/Bangle/Pendant

*C Chain/Charm

*D Diamond

etc.

Some valid codes are:

D (loose diamonds)

F (findings)

G (gold)

L (labour/goldsmith hours)

P (platinum)

The above codes (D,F,G,L and P) are reserved for the stated materials and are also used for non-consignment raw materials. For consignment stock, you may want to record made-up jewellery as well. For this you should use codes other than the above. Examples are:

B (brooches/bangles/pendants)

C (chains/charms)

R (rings)

N (necklaces/pearls)

W (watches/clocks)

Note: The material type analysis file is not used for raw materials and thus cannot be used to analyse consignment raw materials.

Step 1 - describing

Enter the description of the goods you are receiving on consignment into the raw material file. Do this via Inventory, File maintenance, Raw material, Add or Edit. Type the letter of the raw material group that you need to use. A unique serial number is generated. (The Letter+Serial number is the new stock code.) Add a detailed description of the item. The only things that are defined elsewhere are the prices and quantity and mass on hand. With a diamond, for example, you should include the cut, clarity, colour and size in the description field. When more than one stone is received together, omit the quantity and weight because these details are kept separately.

Leave the duty prepaid field as 'Y', unless you are using this field. And finally enter the unit definition. The should be 'Each' in the case of jewellery, 'Carat' in the case of diamonds, 'Gramme' in the case of gold, etc.) The program does not respond the unit description, it is purely for you own assistance.)

Finally tell the computer if you wish to edit the default label. If you type 'Y', the computer will display a typical dumbbell shaped label and allow you to edit the wording to optimum layout.

You may edit the description and label at any time via Inventory, File maintenance, Raw material, Edit. If the supplier code is undefined, the computer will prompt you for one, but you can leave it as zero until you receive the item.

Step 2 - receiving

Do this via Inventory, Transactions, Raw material, Receive. First enter the code that was generated in step one above.

Then enter the supplier name or number. This is essential if you wish to define the item as consignment stock.) If the supplier is not listed, add it via Purchases, Creditors, File maintenance, Suppliers.)

After selecting the supplier, the computer will as if this is on consignment. Answer 'Y' for consignment and 'N' for normal.

If you have answered 'Y' for consignment, the computer will then ask if you want to use Dollars. Answer 'Y' to cost the item in dollars, or 'N' to use local currency.

If you then answer 'Y' for dollars, the computer will ask you if you want to also fix the selling price in dollars. Confirm the above before proceeding.

Enter the reference number or letters for the parcel, the date received, the quantity of stones or items.

Important: For gold, or other material that can't be counted, the quantity field must be zero (0).

The 'Cost each' field must only be used when the items are costed per unit of quantity. Watch the screen for dollar signs wich indicate that cost price must be in dollars. Remember, whether prices are entered in local or dollar currency, VAT must be Excluded from cost. (In the case of selling price, the VAT or GST requirement will be displayed on the screen.)

Important: Do not enter anything in this field if the material is costed per unit of mass such as carat, gramme or millilitre. In such cases you must just press Enter to advance to the next field.

If the 'cost each' field is not used, the 'Total mass' field should be filled in. If left zero, the costing will be calculated on quantity rather than mass.

The 'Total cost' will be requested if the 'Cost each' was left zero. Remember that the cost must exclude tax.

Watch the next prompt which is for selling price per unit. The computer will tell you what the cost price per unit (including tax if applicable) is, and ask for the retail price per unit. Be careful with this. A fact to watch is that if the material is costed per carat, and the stones are each about 0.10 carat, the price per unit will be about 10 times the selling price of each stone. Obviously this is correct, because when you sell 0.10 carat, the price will be one tenth of a unit. Note: If you simply mark up from the total cost per unit as displayed, you won't go wrong. Tip: You can use the pop-up adder (Alt-A) to calculate a price.

Converting Consignment Raw material to Owned Raw material.

Select Inventory, Transactions, Raw material, Receive, and enter the raw material consignment stock code. The computer will ask you if you want to 'Purchase the Balance' of the parcel. Selecting 'Yes' will convert the item to normal raw material stock. If the cost price was in dollars, you will be asked to confirm the exchange rate and converted cost. If either the exchange rate, the dollar cost, or the local currency amount requires changing, type 'N' and you will be allowed to edit any of the figures. If the material is costed per unit of weight, the $/unit-of-weight figure can also be edited. Note: If retail price is in dollars, this will remain in dollars.

Adding new consignment stock - Standard Stock and Merchandise

Enter the description of the item under Inventory, File maintenance, Std.stock/Merchandise as normal. When receiving through the file maintenance 'Add' option, or the Inventory, Transactions, Merch/Std.Stk, Receive option, and provided that a supplier account has been specified, the computer will ask if it is to be received on consignment. Cost price of consignment stock can optionally be entered in US Dollars.

Note: Goods received through Purchases, Transactions, Receive cannot be recorded as consignment stock.

Converting Consignment Merchandise/Std.Stock to Owned inventory.

Select Inventory, Transactions, Merch/Std.Stk, Receive, and enter the consignment merch/stock code. The computer will ask you if you want to convert the item. With Standard Stock, as with Raw Material, the total quantity on hand is converted. If the cost price was in dollars, you will be asked to confirm the exchange rate and converted cost. If either the exchange rate, the dollar cost, or the local currency amount requires changing, type 'N' and you will be allowed to edit any of the figures. Note: If retail price is in dollars, this will remain in dollars.

Selling consignment stock

Through Sales, Transactions, Sale or Sales, Zipsale

Raw Material

In earlier versions of The Jewellery Shopkeeper, you had to precede the raw material code with an asterisk - now this is optional. After you enter the raw material code in full (abbreviations are not recognized), an asterisk will automatically be included. For example:

*D0012

Enter the weight and quantity. Depending on whether the raw material was on consignment and costed in dollars, conversion confirmation window will appear, first for cost price and then again for selling price. The computer will calculate the total price for the weight and quantity entered, based on the unit used when the item was received. If no price was entered when the item was received, the total cost, excluding tax, is calculated and displayed on the bottom line of the screen so that the operator can manually calculate the total selling price.

If you wish to reverse a sale through Sales, Transaction, Sale, enter negatives for all three of the weight, the quantity and price! Refunded cash must also be entered as a negative amount when it asks for the amount now paid. Tip: The advantage of using the normal Sale, Transaction, Sale rather than the Sale, Transaction, Return, is that you can combine items which are being sold with items that are being returned in the same transaction.

Returns through Sales, Transactions, Return are entered the same way as described above, except that all figures are entered as positive amounts. The computer reverses the sign when calculating the final amount. Cash refunds must also be entered as a positive amount as is normal with this transaction type.

Merchandise & Standard Stock

Enter the codes (and quantity in the case of standard stock) as would be done with normal inventory. Codes may be abbreviated and the computer will normalise the code to seven characters by filling the number with zeroes and dashes (--) for merchandise and standard stock codes respectively. Depending on whether the item was on consignment and costed in dollars, conversion confirmation window will appear, first for cost price and then again for selling price. The computer will calculate the cost and price for each item before multiplying by quantity (in the case of standard stock).

Returns

Returns are handled normally. Inventory will be returned back into consignment stock. Except if the balance of a Standard Stock or Raw Material code had, in the mean time, been converted to normal stock then the return will also be treated as normal stock.

Using consignment stock in service/make-up orders

Raw materials, Merchandise and Standard Stock items that are on consignment can be used in service/make-up orders in exactly the same way as normal inventory. As with sales, if the item is priced in dollars, the selling price conversion will need to be verified. (See note below regarding service/make-up order prices.) Dollar cost prices are converted to local currency at the time the material is entered into the service order. This cost price is not fixed because the service order may not be finished for some time. When the order is Finished, and the cost price was in dollars, the computer will again prompt for verification of the cost price. Consignment raw parts/materials is considered bought when the order is Finished, rather that when the order is Invoiced or 'Merchandized', but the time between entering the materials and finishing the order is allocated a temporary local value for purposes of value estimation in the W.I.P. Value report.

Unfinishing a service order will return the raw material to stock, if the raw material is still recorded as being on consignment, then it will be journalised and kept at such. On the other hand, if the raw material had in the mean time been converted to own stock, the returned raw material will be recorded as normal raw stock.

Note: As has always been the case, prices of parts/materials in the service order are invoiced as separate line items. The total price of parts/materials is deducted from the 'Estimated/Final Price'. The minimum price is limited to the total of the parts/materials.

Inventory value

Inventory values in cost reports and automatic postings to the General Ledger exclude consignment stock. Special reports are provided for unsold value of consignment stock. All sales reports, including inventory movement journal and sales analysis, do include consignment stock sales. Stock check lists do include consignment stock (See also Stock Take, below).

Consignment stock reports

Inventory, Reports, On consignment reports are provided for the following: Raw Material value - summary & detail Merchandise value - summary & detail Standard Stock value - summary & detail Consignment stock used/sold/converted.

All the above reports are sorted and subtotalled by supplier code and show cost & selling prices in dollars and local currency

Stock take

The stock take capture lists and reports treat consignment stock transparently as own stock. Therefore consignment stock shortages are reported together with own stock shortages.

Converting selling price currency

Tag prices can be changed from local to dollar and vice versa. This is done through Inventory, Procedures, Markup. The three consignment or normal inventory types can be converted. Prices can only be converted by individual selection - not automatically by range.

Inventory Labels

The currency of the tag price on labels is automatically assigned by the computer.

Note: Only Bar Code labels have the ability to print dollar prices. The older, dot-matrix, type labels will print a zero amount instead. (This may be updated later if demand arises.)

Raw material labels can also be printed by selecting Individual labels in any of the bar code styles.