Consignment Accounting: When Consigned Goods Become Revenue
Some goods sit in your shop but are not yours; others sit with your agent and have not sold yet. When does that count as a sale and revenue, and when does it stay a consignment?
Practical guides and the latest articles on "Revenue Recognition" from the Snad blog — an integrated business management system for small and medium companies in Saudi Arabia. Written for the Saudi market, so you can understand the topic and apply it in your own business.
Some goods sit in your shop but are not yours; others sit with your agent and have not sold yet. When does that count as a sale and revenue, and when does it stay a consignment?
Why collecting the cash is not enough to record revenue, and how to apply the five-step model to your contracts and sales.
When do you record revenue and expenses: the moment cash moves, or the moment it is earned? The answer changes your profit and your tax return.
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